Protect Your Fund From Market Shocks

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This week I want to share some prudent advice with you: protect your fund from unexpected events.

Some fund managers think that controlling operating costs should be the number one priority. It’s a valid position – keeping costs lean is extremely important.

But in today’s world, protecting your fund against the unexpected takes precedence. Just consider these scenarios and how they could negatively impact exposed funds:

  • The COVID-19 pandemic
  • The Ukraine conflict
  • The collapse of FTX

In simple terms – you have to prepare and limit your fund’s exposure to risk.

How does a fund manager achieve this? Through diversification. Practically, it means having multiple service providers. Use two or three reliable brokers. Open multiple bank accounts. Protect your fund if the unthinkable happens.

As a fund administrator, IFINA is well placed to help you diversify your service providers and protect your fund against risk.

Do you want to create your own Investment Fund?

If you want to create your own Investment Fund, just email me. I’d be happy to talk you through how it works in further detail. Thanks for reading – I’ll be in touch next week with some more content.