Investment Portfolio Management

Investment in Israel

Many Israelis are interested in investing different sums of money and are looking for a reliable investment house to work with over time.

There are several investment houses in Israel, and each one presents itself as the leading investment house.

So how do you choose your investment house?

There are a number of factors that need to be taken into account before choosing an investment house:

Maximizing returns over time

The main idea in investing money is to increase the amount through a maximum return that can be obtained for the original investment, therefore, before choosing an investment house it’s important to check the return on the investments over 3-6 years at least, and not to be impressed by one year’s return.

It is also important to know that past returns are not a tool for predicting future returns, but they can provide information about the conduct of the investment house with the funds.

Another thing to know in this context is that there is no obligation on investment houses to publish the returns in their portfolios, so if you find an investment house that operates in full transparency, this will be another sign of the security and quality of the investment house.

Paying minimum management fees

One of the significant considerations that can help differentiate between a recommended investment house and other leading investment houses is the amount of the commission and management fees that are charged, which can be very significant.

It is important to take into account that these fees are sometimes hidden, which makes it difficult to understand the fees of each investment house and making a comparison.

In addition to the management fees charged by the investment house there are fees charged by the bank where the account is being held. The bank charges custodian fees and transaction fees, it’s important to check how much you are charged by the bank for these fees.

Besides the management fees and the fees charged by the bank there can more fees, for instance in accounts that hold mutual funds or ETF’s (Exchange Traded Fund) there are management fees that are charged by the company that manages the fund (sometimes it’s the same investment house that is managing your account).

Paying reduced taxes

As part of the desire to earn as much as possible from the return on the investment, it is needed to maximize profit through the reduction of additional payments, such as fees and taxes.

As mentioned earlier regarding commissions, it is important to know that there are tax payments that vary according to the nature of the investment. Therefore before choosing an investment house it is important to make sure that the staff is aware of the differences and manage the investments taking into account the tax issue.

Investment house staff

There are different types of investment houses, some are large and long standing, and some are boutique investment houses. Whether the investor chooses one investment house or another, he should get the best possible service.

It is important to check those who run the company and how long they are in the same investment house. Frequent changes in the workforce may indicate instability. In contrast, in an investment house where staff members work together for a long period of time the work is more efficient and this can also have an impact on better results.

To summarize: it is important to carry out preliminary and in-depth research before choosing an investment house. Check the issue of commissions, get to know the staff, talk to clients of the investment house and ask all the important questions before choosing your investment house.