Investing in investment companies is a smart way of watching your money grow. Notwithstanding the fact, one needs to be careful and analyze the market trends before putting in the hard-earned money.
Even though not everyone has access to large private banks in Dubai, and other large Dubai financial companies, you can still take advantage of the options offered by investment companies.
Best Investment Companies in Dubai
Let us have a look at the list of Investment Companies in Dubai, which has maintained its ranking amongst the best of companies to watch your money grow.
1. AL MAL CAPITAL PSC
Established in the year 2005, the company ranks amongst the finest investment companies in town. The services offered include:
- Corporate Advisory
- Investment Management
- Direct Investments
2. DAMAN INVESTMENTS PPC
A 1998 venture, the company deals with offering financial solutions for investments and the services offered are:
- Asset Management
- Securities Brokerage
- Investment & Advisory
- Wealth Management
3. EMIRATES FINANCIAL SERVICES
Founded in the year 1976, Emirates Financial Services is one of the oldest financial service providers in Dubai. The bank provides the services of:
- Fixed Deposit
- Bank Guarantee
- Retirement Planning
- Bonds and Mutual Funds
Types of Investment Companies
Understanding the type of company is an important homework that one needs to accomplish before investing. Investment companies are divided into three broad categories, namely
1. Closed-Ended Fund
It is a portfolio comprising pooled assets that raises a pre-determined amount of funds via initial public offering(IPO), followed by enlisting shares for trading.
2. Open-Ended Fund
Also known as Mutual Funds, this incorporates a diversified portfolio comprising money pooled from various investors which tends to issue an infinite number of shares.
3. Unit Investment Trust(UIT)
Such investment type offers a fixed portfolio, mostly of bonds and stocks, as redeemable units to investors for a specified timespan.
A bunch of benefits await when one invests via investment companies and so do a few risks. Let us look at the risks and benefits of investing.
Reasons for investing in Investment Companies in Dubai
One should definitely consider investing via investment companies for the following reasons:
- One prefers a wide range of investments handled by professionals.
- Intends to spread risks, allowing one to have a diversified portfolio.
- One considers investing with a small amount of money, intended for savings and investments.
- Looking for substantial growth in the invested amount over the long term.
Risks of investing in Investment Companies
But as lucrative as these perks sound, they come along with a bunch of associated risks. The investment companies face this challenge of gearing, which makes the market very uncertain.
Another risk associated is the factor of discount, which indicates that if the discount widens, then the investor might have to suffer a huge loss in the invested value.
Hence one should reconsider investing in these companies if:
- One isn’t in a state to afford to lose their invested amount.
- One is seeking a source of guaranteed income.
- One isn’t ready to see a declining curve for the assets invested in.
In case one feels uncertain regarding the investments, one should always seek the guidance of a personal financial advisor, which again, is something offered by most of the investment companies.
Investing your hard-earned money is a huge decision and where you invest is a question that requires deep analysis and research. Don’t jump in blind just at the promise of huge returns.
