How to Survive Market Volatility as an Investment Manager

The economic fallout of this recent pandemic is something that no one can fully predict. Despite the positive signs of a strong market recovery that we are now seeing, we are still a long way to go from a robust economy. Nevertheless, changes happening on the market and the volatility that comes with them are not always bad.

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For investment managers who are guiding clients to maintain healthy portfolios, market volatility is something that can be managed. As long as the right variables are taken into account when making investment decisions, the best investment managers can grow alongside their clients. You can too with these tips we are about to discuss in this article.

Manage Costs and Revenue Better

Just like other professions and businesses, one of the best ways to remain agile in today’s market for investment managers is through better cost and revenue management. A cost management strategy that helps reduce unnecessary costs while keeping the necessary ones in check is a must here.

A way to manage costs is by documenting everything and then doing a thorough review of your costs as an investor. With the data collected, you can begin identifying investments that require more resources to make (more market research, additional data, etc.) and grouping them with investments that by nature incur fees and additional costs.

For revenue, the strategy to adopt depends on whether you are servicing a lot of clients as an investment manager. You should consider integrating billing and revenue management solutions into your workflow to allow for more flexibility.

A good example is managing the fees you charge clients. Complex fees are not always easy to calculate, but a capable revenue management system can automate the process easily. The same revenue management tool can also automate the creation of invoices and reports, which means you have to free up resources to allocate on other tasks.

Data Is Key

The one thing you should never skimp on, especially in a volatile market, is data. You want to be extra certain that every decision made is a calculated decision, and the only way you can do that is by incorporating solid data into the decision-making process.

Fortunately, there are more sources of data to tap into, even in today’s market. More importantly, business intelligence and data management tools are not only easier to find, but more affordable thanks to their SaaS business model.

Manage Your Risks

The last piece of the puzzle is risk management; more specifically, automating risk management. Similar to managing costs and processing market data, there are ways to automate risk management using systems and investment solutions.

That said, you also need to rely on a strict risk management policy to survive a volatile market. When you make decisions based on calculations and policies, even the wrong decisions are easy to learn from. Long-term growth is easier to attain this way.

You now have everything you need to survive the volatile market as an investment manager. As long as you have the right tools and data at your fingertips, you can continue making healthy investment decisions for you and your clients.