What trust management strategies are available

In fiduciary management, different strategies are used. They are classified into two main types:

• Standard;
• Individual.

Let us consider each of these types in more detail.

Standard trust management strategies are a form of collective trust management offering typical portfolios with a diverse set of assets, different risk levels, and entry thresholds. There are two main types of portfolios - model portfolios and standard portfolios.

Model portfolios consist of securities grouped by the same attribute and offer a ready-made solution for first-time investors. The entry threshold starts at 25,000 roubles.

In standard asset management strategies, managers invest their capital in broader assets. Therefore, the entry-level is somewhat higher, starting at 500,000 roubles.

The management company always lists the standard strategies in the appendixes to the contract but does not disclose their full composition.

Customized strategies offer the customer a more flexible approach and do not limit them in the list and structure of assets. The investor receives timely reports on his portfolio, analytics, and forecasts. Usually, a management company offers asset management services with an individual strategy if an investor has a lot of money.

The MC's payment for such services usually consists of two parts - a percentage of the capital under management and an additional percentage of the income received.

What is a trust management contract? Is it always necessary?

Before you put your money under trust management, you should carefully review your agreement with the trustee.

When you put your assets under management, such as real estate, business, or securities, you have to be sure that the trustee will act exclusively in your best interests. Therefore, in this case, it is important to make sure that all conditions and responsibilities are spelled out in the contract, which is drawn up directly with the trustee.

If, on the other hand, assets are managed by investing in ETFs, PAMM accounts or copy trading, then the safety of the investment is guaranteed by the broker. It is the broker who determines the investor's opportunities and limitations, ensuring the transparency of the process.

The reliability of investments depends on the reliability of your broker, so carefully study what conditions the broker offers, the period of its activity in the financial market, and the availability of regulators.

Also, if you want to use all available trading tools to increase your capital as soon as possible - follow this link below, or contact us via live chat. Our experts will help you to choose the best strategy for success.