Investment companies in Maryland are the professional managers of assets such as equities, income securities, real estate and derivative products. Maryland investment firms are customers who represent the "buy side" of investments as opposed to investment bankers who represent the "sell side."

MD investments fall into categories according to the type of asset the investment management firms manage. Investment firms in MD may dedicate themselves to a specific client base while others serve all client types, including businesses that have assets to invest.

It is critical that you understand the three basic types of investments when evaluating Maryland investment firms:

1. Hedge funds receive contributions from members of a private partnership. Maryland investors use these funds to invest in public securities or a financial derivative. They may use a variety of strategies for making a profit.

2. Maryland investment services use mutual funds for individual investors that typically do not have a high net worth. The firm combines the individual contributions to create a single investment.

3. Pensions, endowments and foundations for non-profit organizations form the basis for institutional funds. They use a more conservative investment strategy than mutual funds.

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

Select investment companies in Maryland for long-term results

A highly diversified portfolio will minimize the risk of investment management firms. Maryland investment managers will pick stocks that have a high earnings potential and a value that is not reflected in their current prices.

I recommend: Complete the form at Alliance Bernstein and select retirement planning as the primary topic of interest to have the nearest agent contact you. Respond.com uses a disciplined management approach to provide superior results over a complete market cycle for its clients.

Use an investment firm in Maryland for wealthy investors

Affluent clients tend to benefit the most from a unique investment plan based on diversified holdings through investment management firms. Investment managers will partner with clients and their financial advisers to increase each client's wealth over the long-term.

I recommend: Smith Barney accepts venture capital from wealthy investors and allows you to specify your state and the amount of money you have to invest. Robert W. Baird & Company specializes in wealthy investors and has a branch locator you can use to find the nearest financial adviser.

Select a local company that caters to Maryland investors

Local investment firms are best able to design a portfolio that contains equities and bonds that support local businesses. 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: Altius Financial Advisors is a fee-only firm based in Bethesda that provides financial planning and investment advice. Objective Financial Advisors is another Bethesda-based firm that provides investment management services to groups and individuals.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Evaluate an investment management firm according to the performance of the funds that it manages. Evaluate he performances of funds by comparing them against standard indices and peer groups over the same time period. Managers of MD investments should assess fund performance over at least 3 years to ignore the influence of short-term fluctuations and the business cycle.
• •  It is important to assess long-term investments by the assets that they represent. Investment management firms in Maryland will usually advise that equities generate higher returns than bonds in most countries, and bonds are more profitable than cash. This is because equities have a higher risk than bonds, which are more volatile than cash.