Funds might be big or small. But when there are funds there should definitely be a management plan. Your income might be less. Or your expenses might be so high that you are left with nearly zero savings. But there should be no excuse when it comes to planning your investments. Investments are not just going to fetch your interests. They would ensure that your money is secure and that you do not overspend. You would also be able to reap tax benefits from several investments. When you think about planning your investments and managing your funds there is one question that you should be able to answer- should you manage your funds yourself or should you choose a fund manager?
A fund manager is someone who is an expert in this field. So the manager would know about all the available options in investments. As a new investor, you might not really know about all the existing plans. There might be investments suitable to big budgets and those for small budgets. So a fund manager would give you an idea about all the different choices you have in your hand.
You would end up saving a lot of time when you choose a fund manager. You would simply be depositing and entrusting your funds to the manager. Taking decisions placing orders and other such tasks would be performed by the manager.
Why should you consider managing your funds yourself?
Fund managers would charge you for the service they provide. So if you are on a tight budget it would be a good idea to work on managing your funds by yourself. The profits you make depend a lot on the fund manager you choose. If you are not able to find a reliable fund manager who also charges a reasonable fee then you would find it better to take the decisions yourself.
What should you really do?
There are pros and cons to both the option. So a smart investor is one who strikes a balance between both the ideas. You should diversify your portfolio and have the perfect mix of investments that consist of both managed funds and funds that you take care of yourself. The experiential knowledge a fund manager has after all the years of working in the market would be valuable in your investment journey.