Outsourcing expertise

Predicting the market is a complex game. There is always a level of risk. Even experienced investors may choose managed funds to tap into expert fund managers who research at home and abroad to locate assets that offer the prospect of growth and value.

Expert work beats guesswork in the long run

Finding hidden gems	Identifying growth assets	Targeting industries	Riding out the bumps	Analysing potential

If it were easy to spot hidden gems, everyone would be doing it. Investment managers have the edge. For instance, when a new company lists on the stock exchange, investment managers scrutinise the company's business strategy, and weigh up their competitors, suppliers and customers. They have a better chance of picking a winner than most people.

Learn about different asset sectors.

A specialist investment manager offers more chance of identifying an emerging force. Fund managers knew all about Bill Gates long before the rest of the world, because they not only consider the track record of company managers, they assess the capabilities of companies' human, intellectual and material resources.

Check out growth assets.

Investment managers often target particular industries, such as medical technology, pharmaceuticals and so on, and build up a depth of specialist knowledge. Then they look at the growth prospects and maturity of companies within those industries.

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According to behavioural finance research, many investors don't behave rationally when they invest and that can prove expensive!

Fund managers often outperform individuals because their approach is more structured and they are trained to avoid poor investment behaviours. Investment managers look at risk and weigh up the value of an asset. Where other investors may panic, fund managers generally assess when it is best to sit it out and wait for the long-term market to smooth out the bumps.

Learn more about value style investments.

Rugby player leaping to catch the ball in a lineout

Investment managers have the resources and expertise to analyse the market thoroughly. If they don't perform, their reputation is on the line. They analyse the investment potential of the business:

Franchise - what makes it unique and competitive
Management - how it controls its operations
Risks - what competitor or financial risks it could face
Sector - what affects the bottom-line.

Investment managers follow the principle 'Find hidden value' in BT's Investing Truths.

Find out more about investment

Download a copy of 'Investing made easy' (PDF 1.73MB).
Find a financial adviser using BT's Adviser Referral Program.
Learn about BT's managed funds.