THE BLOG
07/25/2013 11:31 am ET Updated Sep 24, 2013

Investment Groups Offer Sound Strategies for 2013

The state of the economy has been an enigma for many investors. Just when recovery seems likely, well-deserved doubts arise and deflate market gains. Yet, what can investors, particularly those new to investing, do to succeed in volatile markets? Although some have a knack for researching and selecting stocks that are profitable, most do not. A great majority look towards the pros -- tried and tested firms that specialize in investing. However, what do investment groups offer investors and why are they beneficial now?

Linked Goals

It is always a win-win situation when two entities working together have the same goals. In like fashion, investment groups and investors do well when both prosper and fail together. A certain level of trust arises when genuine partnerships exists between investor and firm. Therefore, finding a firm that is directly interconnected with client success is essential for investors. But how does one go about locating such a firm among the many? Look at the business structure of the firm. Partnership owned investment groups offer a more transparent transfer of value to client portfolios.

Research, research, research

Investors often have little time to research several markets. However, investment firms do. For instance, Senior Vice President of Maxim Investment Group, Leonard Parisi, conveys that, "having top analysts... gives you a competitive edge." His firm boasts 17 publishing analysts that are well known to TV audiences. During turbulent markets, clients benefit greatly by having these in-house researchers available to analyze trends and pitfalls.

Size matters

Many investment groups have access to a wide market selection that independent investors simply cannot handle. Large investment firms are involved in several thousands of markets. This enables their clients to add value to their portfolios in countless ways. "Experienced traders are especially helpful with smaller and less liquid stocks." Having a wide selection of large stable producing and small expanding stocks, gives investors good risk/gain ratios.
Information provided to investment groups is also a product of their size. Private presentation from company CEOS and senior management are given to investment groups because they represent a large base of investors. Such information can determine whether a business is investment worthy.

Tips for 2013

Information abounds when it comes to hot investment tips. However, the risks associated with chasing the latest fad are great. A sounder course entails a more deliberate approach. Mr. Parisi advises that, "Clients focus on their investment goals... turn off the TV and focus on risk adjusted returns. Retirement is something that you do not want to mismanage."