When we talk about investing and risk management, a fund manager used to be the best option. Now, the market is shifting. More investors are having second thoughts about fund managing because they are getting a low return. With personal investment, you can often make sound investment decisions, superior to those offered by the mutual fund industry. Personal Investors are getting increasingly successful in the financial markets. Below, we will understand why people are turning towards personal investment and away from fund management.
What Advantages does the Fund Manager have previously?
Fund managers offered numerous benefits in the past. They could better understand the market with their analytical skills and research resources. They could attract new clients with their financial services and efficiently manage their investments to achieve clients’ goals. Fund managers decide how their clients should invest in the market for better returns. They have access to a sophisticated database of the companies, research teams for analyzing the market, trading resources for making informed decisions, and tools to monitor the proprietary market. Furthermore, a fund manager has huge capital resources to pool their clients’ funds.
What Advantages do Personal Investors offer?
Here are some advantages that Personal Investors are having:
- Personal investors have access to different sources of data, data that used to only be available to the fund managers. They are better aware of every activity in the target company and its industry. Moreover, they play by their own rules and follow new and effective techniques without any interference.
- A personal investor no longer has to worry about high commission costs. Commission discounts used to only be available to the funds. Not only have rates dropped in recent years, low rates are now available to the personal investor as well as the fund manager.
- When a fund manager invests for their clients, they have a lot of money that they cannot liquidate easily. For major funds the sell process for a stock position can take up to two weeks. This is because they must sell their share positions in small chucks trying to avoid cratering the stock price. The personal investor does not have stock positions significant enough to disrupt the market. They can sell quickly and efficiently.
- Another thing that fund managers worry about is their fund rankings. If a mutual fund manager has low rankings, they cannot target new clients easily. That is why they focus on following the ranking leaders. This will affect their growth and hurt their performance. On the other hand, a personal investor can focus on their own performance and returns alone.
- Contacting a broker can be challenging and a waste of time. In today’s on-line world, personal investors save time by executing their own trades instantly by making quick, informed decisions with effective results.
When you consider the above reasons, you might agree that savy personal investors have the opportunity to outperform a fund manager. They can make better decisions and have complete control over their money when following their own personal investment advice.
Island Equity Systems can help you with strategies and for better returns. With the best advice on personal finance, you can make informed and effective decisions. We will alert you for every trade that can benefit you and save you valuable time. When you take control of your investment, you can aim higher and achieve better returns. You can utilize our systems as pension and subscription solutions again for superior returns and better financial control. Contact us for further advice.
Island Equity Systems designs and markets equity trading systems for the personal investor