Investment Management Services

Whether you are looking for lump-sum investments, regular savings, mortgages or general financial advice, you can seek the help of investment management companies or financial experts to help you plan your investment portfolio.

How good is free financial advice?

Browse through the Internet and you will come across numerous investment management companies offering free investment advice. Offering free advice is basically part of the company's marketing strategy to win over customers and also drive traffic to their websites. Once you talk to the experts or consultants, you will be able to judge if the particular firm in question, is right for you. It is advisable that you approach the firms with an open mind. Sometimes, people get carried away with companies with a higher brand value. Keep in mind that there may be some companies who would recommend only those products for which they get good commissions. The bottom line is to find unbiased financial planners because only they can provide you with the best possible advice. 

We recommend that you hire the services of a firm who asks for transparent pay fees instead of commission. This is because in any industry, if people are paid by commissions they would push the sale of those products and services for which they get the highest commission. Many financial experts will deny this but if this was not the case, then why would product providers compete to offer the highest commissions?

Term life insurance versus whole life insurance

You may come across financial consultants or life insurance agents who would advice you to sell your whole life insurance. This is because they get the highest commission on this product. Keep in mind that you can opt for term insurance, which, as a general rule is always much better than from a buyer's perspective because it is offered at a much cheaper price and you stand to gain in terms of savings.

Avoid impulse buying

Investing in the financial market can be like gambling if you indulge in impulsive buying. Remember it is your money that is at stake. So before making an investment decision, study the fundamental and technical aspect of the product in question. If finance is not your area of expertise, you can seek the services of financial experts.
 
Never make your payment through credit card
 
Credit cards are best used for retail shopping and not for making business investment. Make your investment with the money you have in your bank and not with money that you borrow.

Investment needs careful planning and more so in the present economic crisis. You can really maximize your returns if you are familiar with the rules of the game.

How much money to invest

Do not invest more than 10% of your disposable income in securities and mutual funds. If you are a regular employee, you could request your employer to keep this amount aside per month. Some employers make a percentage match contribution to what the employee invests. Let us assume you that you set aside fifty or hundred pound every month. The amount may not seem very big but you will get substantial returns over a period of time, especially as the interest on it compounds regularly.
 
Investing in Direct Investment Plans-DRIPs

Many top companies have direct investment plans-DRIPs. The investment fees in DRIPs are either very low or next to nothing at all. Some companies even allow discounts. Some of the popular companies with DRIPs are Exxon Mobil (XOM) and Cross Timbers Oil Co. (XTO). Oil and energy sectors promise immense growth in the coming time. Do not worry if they do not pay high dividends; your investments will grow as the companies grow.

Investing in Exchange Traded Funds

Exchange Traded Funds provide a great scope for diversification, steady growth and solid dividends. There is a difference between mutual funds and ETFs. ETFs can be traded like stocks throughout the day. A little bit of research would pay you rich dividends. Choose the ETFs that have a great track record of success. Be a cautious investor and do not spend more than 20% of your total investment portfolio in any one stock or ETF. Diversification of investment is the secret of success.

Avoid investing in indebted companies

You should be wary about investing in indebted companies even if they are making profits. The fact that it is making profit is no sure sign that you will gain from your investment. Nearly half of the banks are state-owned, but given the present recession, they are more likely to pull the plugs on firms if they see bigger losses in the pipeline. Borrowing in the bond market is already difficult and is going to get still harder in the coming years. A firm making profit is not safe from its creditors and when they pull the plug, it is the shareholders that are wiped out.