Long
short fund is a type of mutual funds, that holds investments that are foreseen
to go up, and sell securities that are anticipated to go down, these securities
are the ones that the company does not own. It advises us to invest in both
types with an anticipation of gaining returns on both types. Now, this does
sound to complicated to be understood, and hence, bigger firms or budding
entrepreneurs usually rely on investment bankers
or asset management firms for this to be taken care of. Nobody wants to lose
money or invest without having the basics right. But in case they aren’t sure
about the types of investments they should make in order to make the backbone
of their company stronger, then it is advised that they go to one of the
investment banking firms or asset management firms to do that for them. Trust
is a key issue in this entire process. Therefore, if you are a someone who is
looking for such a firm who can help with something as complicated as the ESG
funds, which has already gained momentum in India, or the long short funds we
just discussed about, then you need to choose a firm with good name and
reputation over the years. Sure, you can google names of one of the highly
performing asset management firms in India, but with that, you also need to see
the clientele that they have handled and get more information on them. Because,
ultimately, this is money that we are talking about and we do not want to loose
it just because we did not do a background check on the asset management firm
that we hired to expand our assets and take care of the liabilities. The key
role of asset managers, after all, is to live up to the trust of their clients
and help them meet their asset goals in future.
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