An investment management company in Arizona invests in equities, income securities, real estate and derivative products. Investment management firms in Arizona are the customers that represent the "buy side" of the investment business while investment bankers are on the "sell side."

Investment management companies in Arizona categorize themselves by the type of assets they manage. An Arizona investment management company may dedicate themselves 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 an investment agency in Arizona:

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

2. Mutual funds typically come from individual investors that do not have a high net worth. Arizona investment firms 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. Arizona investment management 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

Find investment management firms in Arizona that seek long-term results

Creating a highly diversified portfolio to minimize the risks is the goal for these investment firms. Arizona 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. Several investment firms in Arizona that specialize in retirement planning are available on its website. Respond.com uses a disciplined management approach to provide superior results over a complete market cycle for its clients.

Select Arizona investment management companies that cater 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 Wachovia's website. Robert W. Baird & Company specializes in wealthy investors and has a branch locator you can use to find the nearest financial adviser.

Select investment management companies in Arizona that 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: Modular Financial Solutions in Tempe uses asset allocation analysis and needs-based analysis to create a personalized investment program. Strategic Wealth Advisors in Scottsdale uses a disciplined, long-term approach to wealth management.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Use the type of invested assets to predict the performance of long-term investments. For example, an Arizona investment management firm usually holds 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.