How much can be earned in asset management?

It is difficult to estimate how much money can be earned in asset management. Everything depends on the parameters of the investment portfolio: its size, strategy, and investment terms. The strategy can be both more aggressive and more conservative than in investment funds. It can have different profitability and, accordingly, different risks.

Based on the following factors, which are systematized in the table below, you will be able to predict your returns. The success of the investment and return of the trust management method depends on factors such as:

• Safety and reliability of the broker;
• Experience and professionalism of the manager;
• The trading strategy is chosen;
• Profitability of investments;
• Entry threshold;
• Maximum risks;
• Possibility of risk diversification;
• The amount of the manager's commission.

Are there trust management risks?

Trust management involves certain risks. The advantages of investing using this method work only if you have successfully chosen a reliable brokerage company and an experienced manager.

The main risk is obvious. You are entrusting your funds to an intermediary or a third party. And if the contract is not concluded, the manager may simply not return your money to you, or return a smaller amount than promised. Therefore, you need to properly assess the risks involved and take all measures to protect your investment.

First of all, you need to identify the following major risks:

1. Market risk is the risk of a decrease in the value of assets. The experience and proven trading strategy of the manager will help to minimize it.

2. Legal risk - it is connected with conditions of the contract, in what degree all aspects, including force-majeure situations, are considered in it.

3. Management risks - these are risks that the manager will choose unprofitable securities or unsuccessful time for purchase or sale of the asset.

4. Fraud risks - to reduce risks, it is important to choose a large and reliable broker with capital protection. You can also diversify your portfolio by dividing it among several companies.

5. Operational risk is related to the failure of the management company or stock exchange.

Investing in trust management is riskier than in PAMM accounts and auto-trading. However, the risks can be successfully minimized if you follow all recommendations and act in the most balanced manner.

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.