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

Investment companies in Illinois categorize themselves by the type of asset they manage. Investment management firms in Illinois 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 Illinois investment management companies:

1. Hedge funds typically invest in public securities or their financial derivatives and come from members of private partnerships. Illinois 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. Illinois 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. These types of Illinois 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

Locate investment management companies in Illinois that seek long-term results

Creating a highly diversified portfolio to minimize the risks is the goal for these investment firms. Illinois 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: Complete the form at Retirement Job Center and a single agent licensed to sell retirement planning services in Illinois will contact you. 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 firms in Illinois 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: Smith Barney provides a range of financial services, including wealth management. You will begin the financial consultation questionnaire on its website by entering your zip code or city and state along with the search radius. 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 Illinois 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: Abuls, Bone & Eller of Chicago uses asset allocation and active investment management to achieve long-term goals. Folk Financial Planning in Urbana provides a no-fee service and uses no-load, low-expense mutual funds to build a diversified portfolio.

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, an investment agency in Illinois usually finds 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.