Investment management in Rhode Island deals with assets such as equities, income securities, real estate and derivative products. Rhode Island investment management companies are customers who represent the "buy side" of investments while investment bankers represent the "sell side."

Investment managers in RI fall into categories according to the type of asset managed by the investment management firms. Rhode Island financial firms 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 Rhode Island investment firms:

1. Hedge funds receive contributions from members of a private partnership and investment management in Rhode Island typically use them to invest in public securities or a financial derivative.

2. Rhode Island investment companies uses 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. Investment management firms in Rhode Island use a more conservative investment strategy for these than mutual funds.

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

Select an investment company in Rhode Island for long-term results

A highly diversified portfolio will minimize the risk of certain approaches with an investment management firms. Rhode Island investment management firms will pick stocks that have a high earnings potential and a value that is not reflected in their current prices.

I recommend: Go to Respond.com and begin the selection process by selecting retirement planning and enter your zip code or city and state. Complete the form at Retirement Job Center and a single agent licensed to sell retirement planning services in Rhode Island will contact you.

Use Rhode Island financial firms for wealthy investors

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

I recommend: Robert W. Baird & Company specializes in wealthy investors and has a branch locator which you can use to find the nearest financial adviser. 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 local Rhode Island investment firms to handle your money

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: Parsons Capital Management is in Providence and specializes in affluent clients who usually have more than $2 million to invest. The Randall Financial Group also is in Providence and provides comprehensive financial planning services for its clients.

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. The performances of funds are evaluated by comparing them against standard indices and peer groups over the same time period. Clients of Rhode Island investment services should assess fund performance over at least 3 years in order 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. An investment company in Rhode Island 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.