Alabama investment management firms invest equities, income securities, real estate and derivative products. Managers of investment firms in AL are the customers that represent the "buy side" of the investment business while investment bankers are on the "sell side."

Investment management firms in Alabama are categorized by the type of asset they manage. An investment company in Alabama may dedicate itself to a specific client base while others serve all client types, including businesses that have assets to invest.

You must be able to identify the following three basic types of investments when you select Alabama investment management firms:

1. Hedge funds typically invest in public securities or their financial derivatives and come from members of private partnerships. Alabama investment firms may use many strategies for making a profit with hedge funds.

2. Mutual funds typically come from individual investors that do not have a high net worth. Alabama investment services combine the individual contributions and invest them as a single asset.

3. The basis for institutional funds is pensions, endowments and foundations for non-profit organizations. These types of Alabama investment firms must adopt a more conservative investment strategy than for mutual funds.

Action Steps
The best contacts and resources to help you get it done

Locate a company for investment management in Alabama that seeks long-term results

Creating a highly diversified portfolio to minimize the risks is the goal for these investment firms. Alabama investment managers for these portfolios should pick stocks with a high earnings potential and a value that is not reflected in their current prices.

I recommend: The Service Employees International Union is the fastest growing union in North America and promotes several investment firms in Alabama that specialize in retirement planning. Workman Securities deals in a range of investment services including retirement planning and allows you to locate representatives by state on its website.

Select investment management in Alabama that caters to wealthy investors

Wealthy clients often need an investment plan customized to their unique needs. An investment management firm with experience working with affluent clients will work closely with their financial advisers to increase each client's worth over the long-term.

I recommend: Wealth management is one of the core businesses of Wachovia. You can locate its nearest financial center by entering your city and state or zip code on its website. The National Association of Active Investment Managers is a non-profit association of registered investment advisers. You can find the nearest registered adviser by providing your city and state on its website.

Select Alabama investment services to support local businesses

Local money managers are best able to select the businesses in your area in which to invest your funds. That local knowledge will put your money to good use, not only increasing your own worth, but helping other local business owners expand and prosper as well.

I recommend: Hayek Kallen in Fairhope uses a fundamental balanced value approach to portfolio management. Cornerstone Investment Management & Consulting in Mobile provides performance-driven, objective advice through regular portfolio reviews.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  You should use the type of invested assets to predict the performance of long-term investments. For example, investment management firms in Alabama usually find that the investment of equities produces a higher return than bonds, which in turn are more profitable than cash. Financial theory predicts this because equities have a higher risk than bonds, which are more volatile than cash.