Investment funds and money management companies

Mutual funds are a means used to invest funds in a variety of companies, and is interested in applying the sales of their financial units to public investors[1], investment funds are defined as investment options that collect the funds of a group of so-called investors and then invest the content of those funds based on the role of professional manager of each fund.

Other investment fund rates are an investment strategy that allows each person to pool their own funds with other people’s money, and these funds constitute a variety of investments.

Money management companies are companies that provide a variety of financial services to individuals to help them achieve the best financial profits, resulting in an increase in the number of people interested in their services on a daily basis,[

Money management companies are divided into a range of types, including capital firms :

companies that are interested in investing in regulatory companies and individual clients, and seek to provide a range of financial services, such as fund management, and diversified accounts.

Asset management companies are companies that are interested in asset management by relying on a group of fund managers, each representing an international company in financial markets around the world.

Commercial banks are financial institutions that accept customer deposits and provide adequate management, as the primary function of these banks is to retain money, as well as provide the ability to provide financial loans to diversified companies, individuals to purchase products or expand the business.

Financial brokerage is a broker between individual sellers and securities buyers, ensuring that financial transactions are easy to execute.

Investment companies are companies that are interested in investing individual funds by relying on the use of various investment portfolios, while providing professional management of their securities content, pooling the funds of all investors.

The benefits of mutual funds are characterized by a range of benefits, including:

  • To benefit from professional management expertise: investors benefit from the role of investment fund management to shoulder all the burdens of their management, they are interested in making investment decisions that contribute to the construction of an appropriate pool of funds , seek to track prices in the financial market, monitor the level of risk and be able to diversify into the investment fund, which helps to reduce the proportion of risk affecting shareholders, due to the composition of the content of each investment fund. Companies, if a company loses, it does not result in the loss of other companies, nor does the investor alone manage his investment fund, no matter how much his financial experience.
  • Flexibility and convenience: This is a feature of investment funds within open-end investment companies, where the fund is able to repurchase its owner’s financial shares at all times, and this flexibility is one of the advantages that offer an excellent service to investors who may change their focus As a result, investment funds are able to offer a range of investment instruments tailored to the circumstances and needs of investors. , and low risk helps encourage investors with little experience, limited financial knowledge to participate in their investment resources, and financial savings in buying Bonds, stocks and other types of securities, which contribute to the revitalization of financial markets, both important and secondary. The objectives of investment funds are intended to set a set of objectives that help meet investor demands, and to ensure that they are commensurial to the levels of risk, and in accordance with those pre-determined objectives, the fund manager is willing to implement a set of investment strategies and policies that are affected by achieving these objectives.

this leads to the different types of securities that make up the content of these funds depending on the nature of their objectives, and generally categorize the objectives of the investment funds as a result:

Investment objectives aimed at preserving capital. Investment goals in search of income. Investment goals that promote financial growth. The forms of investment funds divide investment funds into a range of forms, each aimed at achieving certain objectives according to the nature of its investment area, and here is a range of the most important forms of investment funds:

  • money market funds: investment funds that invest securities on the money market, It is characterized by high financial liquidity , in the short term, low risk compared to other investment funds, which leads to lower returns, but is not considered totally risk-free, but the amounts invested in it can be reduced. Considerably.
  • Fixed Income Instruments: Investment funds that rely on the use of debt instruments for investment purposes, including bonds and instruments issued by government institutions and institutions, or any institutional entity that holds the rights to issue this type of debt instrument, and bond and sukuk rates are affected by many risk factors , such as rating companies’ rating of the type of bonds or the effects on interest rates.
  • Equity Funds: Investment funds interested in applying investment in the shares of various companies, and this type of fund is divided into a range of types of income funds: funds that seek to provide income, based on private equity investments of companies with exceptional returns.
  • Growth Equity Funds: Funds interested in developing their own capital by investing in the shares of companies that expect their financial value to increase in the market, where the fund’s performance depends on capital gains.
  • Balanced funds: Investment funds that combine bonds and equities in their asset content and seek to allocate a portion of their investments to short-term financial instruments

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