The truly professional investment advisers that is the well established investment counsel firms who charge substantial annual fees are quite modest in their promises and pretentions . For the most part they place their clients funds in standard interest and dividend paying securities and they rely mainly on normal investment experience for their overall results .
In the typical case it is doubtful whether more than 10% of the total fund is ever invested in securities other than those of leading companies plus government bonds including state and municipal issues nor do they make a serious effort to take advantage of swings in the general market .
The leading investment counsel firms make no claim to being brilliant ; they do pride themselves on being careful , conservative and competent . Their primary aim is to conserve the principal value over the years and produce a conservatively acceptable rate of income .
Any accomplishment beyond that and they do strive to better the goal - they regard in the nature of extra service rendered . Perhaps their chief value to their clients lies in shielding them from costly mistakes . They offer as much as the defensive investor has the right to expect from any counselor serving the general public .
What i have said about the well established investment counsel firms applies generally to the trust and advisory services of the larger banks .
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