What is financial trust management?
- George Solotarov
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Investing in financial markets attracts more and more people every year because many people have certain savings and do not want them to depreciate due to inflation. It is much more profitable to invest them into promising assets and multiply your capital. The decision to invest in financial markets is made for a variety of reasons. But the main one is that returns on stock and forex markets can be several times higher than on classical investment methods, such as buying real estate or placing bank deposits.
However, one cannot simply walk into the financial markets and buy stocks, bonds, or securities, it requires an intermediary who is licensed for such activities and has some knowledge and skills in navigating market trends.
Many beginning investors who decide to make money from changes in stock prices turn to the trust management method. Trust management is the transfer of your investment assets to an experienced manager, who will monitor the situation on the stock exchange and decide when and what securities to buy and when to sell. So when you put your assets under trust management, you give the manager the right to make investment decisions on your behalf.
The manager disposes of the client's contribution independently, based on a pre-agreed strategy and investment objectives, in order to generate as much profit for the investor as possible.
Fiduciary services are fixed in a contract, the parties to which are the management company or investment fund on the one hand and the settlor or client on the other. The services are usually provided to clients individually, taking into account their personal investment objectives.
A trustee is a person who assumes responsibility for managing someone else's property. For managing the assets, the trustee receives remuneration, which may be a fixed sum of money or a percentage of the income received.
It is important to note that in trust management, the investor (the trustor) retains ownership of the assets, and the intermediary (the trustee) disposes of them in his interests. In this case, the powers of the trustee are not unlimited, their conditions are regulated by law (or contract) and fix the restrictions in the performance of certain actions.
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