Investing in the stock market can be both very risky (because you can lose the money invested) or very rewarding (because you can earn multiples times your initial investment.) This article explores both of these. All too many people simply look to make a quick buck in the market, without realizing that the vast majority of the world’s top investor have achieved that status by holding stocks for the long term. Large private investors also hire fund managers and refer to them as wealth managers.
Before investing in a mutual fund, Wall Street geeks will tell you to look at a variety of factors, one of the most important being who is managing the fund. And to make things even more risky, the more money that you invest the more money you stand to lose should something bad happen.
In the aftermath of the real estate property market meltdown, people were naturally averse to taking risks, by investing in residential and commercial property. Often, the money invested can be spread out among several requests, allowing the investor to contribute $25 to four different causes, for example, to minimize his risk and to maximize the number of needy that he can help.
Monitoring the markets and preparing reports regarding the performance of equity funds on a quarterly basis or as stipulated by the firm, is one of their tasks. These include risky business ventures, highly speculative stock, tax avoidance schemes or too-good-to-be-true propositions that promise unusually high returns.
The three most common options are stocks, bonds and mutual funds. This is similar to hiring an investment broker and then telling him to invest your money according to the risk level you specify. They are mostly hired by asset management companies to take care of investments made on behalf of the clients in mutual funds.