Investing: what is it and how to choose the right capital manager

How to choose a manager to ensure solid return on investment

16-04-2020

Investing is an act of allocating funds to various assets in order to increase them. Everyone has probably heard the statement saying that money should make money, and the number of those who wish to make it happen is growing every day.

Indeed, this trend makes total sense. The money kept under the mattress is losing its purchasing capacity and gets eaten away by inflation and depreciation. So, it is important to make smart investment decisions in order to protect your funds against depreciation.

However, private investment is more than just putting money in a bank. By investing the right way, you can earn an income which is essentially the key goal of investing. In this article, we are going to discuss how to do it right and avoid the hidden pitfalls.

Contents:

1. Investing is a way to earn a solid income
2. Special aspects of investing in financial assets
3. Trust management and its benefits

Investing is a way to earn a solid income

There is only so much one person can do. Meanwhile, money can do a lot more. Most importantly, the investor does not have to get fully involved in this process. This is what makes investment so profitable.

To invest your money the right way, you need to carefully pick your assets. In this day and age, the most popular ones are investments in real estate, business, precious bank metals, etc.

No less popular are investments in financial assets aka financial investments.

Special aspect of investing in financial assets

Financial investment means investing in securities, currency, investment funds, and cryptocurrency. All these assets are traded on financial markets. So, it is essential for the newbie investor to have at least basic knowledge about them.

There are three ways to make profit:

  1. Speculative trading (buy cheap and sell at a higher price, and vice versa - sell at a higher price and buy cheap).
  2. Purchasing assets for the medium and long term at the prospect of their sustained growth.
  3. Receipt of dividends if we are talking about the stocks.

When picking a financial instrument, you need to understand how its price is going to move next, to be in the right spot at the right time to buy or sell, to predict the impact of various economic scenarios on the price.

It appears that financial investment is not such an easy thing if you are unfamiliar with this field. But that’s how it is if you do everything on your own. The good news is that you can have a manager to tackle that for you instead.

What is investing and how to choose a manager

Trust management and its benefits

With Trust management (TIMA service), you can make an investment and let a professional manage your assets. A lot of skilled traders are trading with Gerchik & Co, making consistent profit on financial markets. They know how to choose the most promising instruments, make profitable trades and increase capital investments.

You can trust these traders with your capital management. The profit made is then split as agreed.

How to choose a manager

Investing is not only profitable, but also risky business. So, before letting the managers handle your money, you need to make sure that they will be able to make it grow and not send your funds down the drain.

What criteria will help to choose the right person for this? First of all, you need to learn the extent of traders’ experience in financial markets, how long they have been trading on the stock exchange, what their yield curve and performance statistics are for different time periods.

If you see a yield curve that is going up steadily and the manager is able to continue increasing the capital for a long period of time, it’s safe to say that you're dealing with a professional.

What is investing and criteria for choosing the manager

Second of all, find out what their risk management approach is. Every trader faces drawdowns. However, they can be either very small and temporary, or may remain for months with occasional profit made as if by chance.

Third of all, make sure that their risk management strategy is suitable for you.

THERE IS A RULE:

The higher the return, the higher the risks!

The trader’s or investor’s attitude towards risk is called the risk profile. Low-risk strategies often produce low returns, while aggressive ones allow making a lot of money but you have to risk a large chunk of the start-up capital.

Both of these approaches are valid. However, to ensure comfortable cooperation, it is important for the risk profiles of the manager and investor to coincide.

Investing: what is it and how to choose the right capital manager

Fourth of all, you need to agree on a profit distribution method. Private investment is a chance to increase your capital by boosting the profits. The managing trader and investor split this profit according to the pre-agree terms. So, make sure to discuss this from the get-go.

Where to find a manager

We have established what the cues of a competent manager are when investing in TIMA accounts. Aside from that, we have outlined the criteria for picking the manager that is right for you.

Another equally important question is: “Where to find such an expert?” Having anticipated it, the founders of Gerchik & Co have come up with the TIMA Account Ranking, making it easier for investors to choose a suitable manager.

By checking out the said ranking, you can track down the statistics of the managing traders, their yield curve and profit percentage, as well as make investments by getting connected to their accounts. The traders manage both investor’s funds and their own. This basically means that their money is also at stake, and so they are personally interested in making profit.

On the ranking page, you can scroll through a long list of managers and pick the one that is right for you based on the aforementioned criteria.


Advantages of investing in TIMA accounts

We have already figured out that financial investment is an activity that requires extensive professional training. Offering various investment options for any budget and preference, Gerchik & Co brought together the best experts.

You can start with just $100. Meanwhile, the profitability of some managers can reach up to 300% per annum. You don’t have to enter the market on your own to make money. Your funds will be managed by a professional while you can sit back and reap the profits.

What is investing and what criteria to use when choosing manager

Diversification opportunities are another great advantage of investing in trust management. You can distribute your funds between different managers, for, as we know, it’s not wise to put all your eggs in one basket.

Thanks to the TIMA accounts, you will see that it is profitable and easy to invest when you are dealing with professionals. Risk Manager solution will help to preserve the deposit.


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NOTE:

Prior to investing your funds, please carefully read the manager’s offer. If you do not find certain terms and conditions outlined therein suitable, choose a different TIMA account.


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