Capital management and asset firms help individuals and corporations optimize large amounts of financial resources. Optimization can incorporate a number of strategies, including investments, savings, and the selling of investments. The investments can also range from stakes in other businesses, real estate holdings, stocks, bonds, and derivatives. Experienced capital management firms, such as Al Masah Capital Management, provide clients with a multitude of expert services. Besides the facilitation of transactions, these firms can help pull market reports and analytical tools that help clients make the most informed decisions.
A client’s asset management portfolio can contain several different types of investments, depending upon the client’s objectives and needs. Investment types can be grouped into three different categories. These categories include low liquidity, medium liquidity and high liquidity assets. Low liquidity assets consist of growth funds and long-term bonds that do not produce an immediate cash flow. Medium liquidity assets include dividend funds and high liquidity funds include mutual funds. The higher the liquidity, the more likely it will produce immediate cash flows for the investor.
Asset management firms provide real value to their clients through market research and analytical studies. Reports such as business and investment reviews, feasibility studies, and financial models showcase information on which investments will produce the best results. These reports also provide information on which investment choices may not produce the best results in the short-term, but may meet the client’s needs in the future. For instance, high risk stocks tend to result in losses over the first few years, but if held for periods of ten years or more, produce superior results to more conservative options.
Retaining the services of an asset management firm is essential for those who have large amounts of wealth. While the goal of most investors is to at least maintain the value of their investments, many want to use their investments to generate additional income. Whether the investor needs to generate that income in the short-term or the long-term will determine the correct mix of investments according to liquidity. The more liquid an investment is, the more income it will generate in the short-term.