Benefits of Managed Investing
A managed investing company will invest on your behalf, using their professional experience and market contacts to build a portfolio of investments that align with your financial goals. They can also provide expert guidance on other aspects of your finances including mortgages, insurance, and tax planning.
Managed investing companies will often offer a range of funds that are suitable for different risk levels. It's important to understand the level of risk that you are comfortable with. This will typically depend on your attitude towards risk and the amount of return you are willing to take.
Depending on the strategy and type of assets used by the manager, some managed investment funds may have additional risks that aren't necessarily associated with the individual securities in the fund. These risks can include leverage or hedging strategies which increase the risk of losses. It is also important to note that although managed investment vehicles offer diversification, they don't fully eliminate the risk of losing money.
As a rule, the higher the potential returns on a managed investment fund, the greater the level of risk. As such, you should always choose a fund that is appropriate for your personal risk profile and financial situation.
Some funds have a focus on trying to outperform the market by actively picking stocks and ETFs that they think will do well. These are called active investments and they tend to have higher fees than passive investments which track a market index.
Another benefit of managed investing is that it can simplify your investment account by consolidating your various accounts into one. This can help to reduce your overall cost of investing. Having your various investment accounts under one roof can also make it easier to see your overall financial picture.
For many people, it's easy to end up with a collection of investment accounts - old 401(k)s from previous jobs, your own brokerage account, and that IRA you opened after seeing a Warren Buffett documentary on Netflix. Managing your investments with a managed investing company can make it easier to keep track of your investments and rebalance your portfolio when needed.
A company like Wealthsimple offers a managed investing option called Wealthsimple Trade that gives you access to our professional investment managers and technology that keeps your costs low. We are also available to answer any questions that you might have along the way.
While we don't have any guarantees on your investments, our team of investment professionals will use their experience and knowledge to build a diversified portfolio that meets your needs and risk tolerance. We'll then regularly review and rebalance your portfolio as needed to help you achieve your goals.
We are here to help you reach your financial dreams. To learn more about our services and get started, contact us today. You can also check out our blog and FAQ pages to stay up-to-date on the latest news in the world of investing. Or sign up for our newsletter to get tips on how to make the most of your investments.