Institutional investors are large scale companies involved in collecting lump sum amount of money from individuals and invest them in stock market. The investment includes pension funds, mutual funds, hedge funds and private equity. Usually institutional investors are pushed to lower risk when compared to private investors. Therefore they invest huge amount in investments. However investors, irrespective of private or institutional, need to follow asset allocation guidelines for investments. So it becomes highly important to know about asset allocation and its guidelines on before hand. The opportunities are wide for institutional investors when they know the actual process involved in investments. Here are some asset allocation strategies to be followed while dealing with investments.
Asset allocation is of different types including tactical asset allocation, dynamic, insured asset allocation and integrated asset allocation. Irrespective of strategy used, asset allocation involves less risk and also maximizes the profit. Asset allocation also involves risk factors which should be predicted with cautiousness. In case of constant weighting asset allocation, investors need to buy the assets and need to constantly watch the market change. This strategy is straight forward where observation of market is prime goal rather than calculating the dynamics in investments. On the other hand, in strategic asset allocation adheres to “base policy mix”. It means you can equally divide your investments on stocks which return 10% and 5% for bonds. Thus it is expected to get 7.5% per annum.
When you are a start up organization, it is recommended to get advice from financial experts before dealing with investments. Getting advice will help you to get involved in investment process and also makes you fit to deal with ups and downs of market. Guidance on handling risks is also mandatory for start ups since it is very tedious process. Candice Beaumont is chief investment officer of L Investments and also a lead supervisor of Genoil Inc. Candice, with her 15 years of experience in finance market makes her stand distinguished. New bees can attend her meeting scheduled in Dubai to gain knowledge in “Energy Investment” and “Asset allocation”. The meeting about Asset allocation not only helps new bees but also expert investors to run business with ease. You can share your experience or can clarify the doubts regarding investments and finance market.