The key to making the most of investment management firms in Washington DC is understanding the primary goal of these companies. Investment managers seek to maximize their client's investments and minimize their risks. These goals are not always complementary and a good investment manager will try to balance return against risk according to the needs of their client.

There are many different types of clients for investment firms in DC. For example, mutual fund managers invest money for individual retail clients while managers at investment banks serve companies or municipalities. There are three basic types of investment managers based on the types of funds they handle:

1. Investment firms in Washington DC may invest mutual funds for individual investors. These clients usually do not have a high net worth individually although the total fund can be extremely large.
2. Capital management firms also manage endowments, foundations and pensions for non-profit organizations. These investments use a more conservative strategy than mutual funds.
3. Hedge funds are another type of fund frequently managed by investment firms. Washington DC hedge funds typically invest in public securities and may use a wide variety of strategies.

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

Select Washington DC investment firms that look at long term results

Minimization of risk is the primary goal of these investment management firms. Washington DC investment managers of long term funds look for undervalued stocks with a high earnings potential.

I recommend: Learn about conservative long-term investment strategies at Farr, Miller & Washington. Chesapeake Investment Management is committed to long-term diversification and also provides investment news.

Locate firms that perform investment management in Washington DC for affluent clients

Wealthy investors frequently require unique investment management plans. The investment management firm should work closely with the client's financial advisers to increase the client's wealth over the long term.

I recommend: Merrill Lynch caters to affluent clients and also provides research on investment management topics. Learn more about the wealth management services for affluent individuals and get investment management news at Convergent Wealth Advisors.

Create a diversified portfolio with Washington DC investment firms

Diversification is an investment strategy that manages risk by mixing a variety of investments. The fluctuations of a single security therefore have less impact on the portfolio.

I recommend: Learn more about diversified investment strategies at Brown Advisory. Get information about diversified investment management strategies at Calvert, a firm that serves both individuals and institutions.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Fund performance is the gold standard by which analysts measure investment management. Washington DC financial analysts use standard indices and peer groups over the same time period to compare the performance of different types of asset management. Washington DC investment firms should assess fund performance over a long period, usually at least three years. This time frame will minimize the effect of short term fluctuations and the business cycle.

Investment firms in Washington, DC handle the professional management of assets such as equities, income securities, real estate and derivative products. Investment firms in Washington, DC are customers who represent the "buy side" of investments rather than investment bankers who represent the "sell side."

Investment management firms in Washington DC fall into categories according to the type of asset they manage. These companies 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 Washington, DC investment firms:

1. Hedge funds receive contributions from members of a private partnership and are common in asset management. Washington DC companies invest in public securities or a financial derivative. They may use of a variety of strategies for making a profit.

2. Washington DC investment firms 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 of institutional funds involved in asset management. Washington DC companies use a more conservative investment strategy than mutual funds.

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

Select a company to perform investment management in Washington, DC for long-term results

A highly diversified portfolio will minimize the risk of investment management. Washington, DC 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 management firm in Washington, DC for wealthy investors

Affluent clients tend to benefit the most from a unique investment plan based on diversified holdings through investment management. Washington DC firms 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 that you can use to find the nearest financial adviser.

Select local Washington, DC investment services 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: Armstrong, Fleming & Moore uses sophisticated strategies to help clients achieve long-term goals. The Family Firm uses financially sound strategies to customize each clients’ portfolio.

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. To evaluate the performances of funds, compare them against standard indices and peer groups over the same time period. Clients of Washington, DC investment management services 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. A Washington, DC investment management firm usually will 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.

Investment management firms in Washington DC cover a wide spectrum when it comes to their financial services. Some investment firms in DC might specialize in building wealth for individuals, while others may service private corporations, while others still might servce public entities like the pension plans for city workers.

Individuals seeking a career in Washington DC investment firms will need to complete several steps in order to be properly educated and licensed. These licenses may span the areas of insurance, to the ability to trade securities and more. Here are the steps which will help you obtain a career at an Washington DC investment agency.

1. Learn about the parameters associated with investment management firms in Washington DC education and training.

2. Get an education with a focus in finances.

3. Complete courses to obtain the required licenses to work in investment management Washington DC.

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

Determine what working in investment firms in Washington DC entails

Because there is a wide spectrum of specialties that an investment firm performs, it's good to educate yourself on the different aspects of financial planning you might called upon to complete. It will also help you narrow your focus to securities sales, insurance products, a combination of the two or potentially even working for Washington DC financial firms that specialize in less common areas like commodities.

I recommend: The Department of Labor offers comprehensive statistics inclusive of hourly wages, anual wages and industry profiles for financial workers within Washington DC. The American Bankers Association, which is headquartered in Washington DC, offers a comprehensive overview and training courses to prepare you for a career in the investment and banking field as well.

Get a degree in some aspect of financial planning for investment firms in DC

People who work in asset management Washington DC often have varying degrees from a business background. Those include degrees in economics, finance, accounting and more. Major and minor in courses that will be attractive to Washington DC investment firms.

I recommend: Check out the Small Business Notes website which offers a comprehensive review of the business schools in the District of Columbia. The All Business Schools website also offers a quality resource of business schools found inside the District of Columiba as well as great business schools across the nation.

Get the proper licenses so that you can work in Washington DC asset management

Once you've completed your undergraduate degree, you must now take the exams to obtain the proper licenses so that you can sell securities and insurance products and work in an investment firm in Washington DC. Some companies will hire you for a period of time while you prepare for those exams, while others will prefer you to have completed those exams already.

I recommend: Check out the Washington DC official government site which offers up-to-date requirements for the licenses to practice within the district. The District of Columbia lets FINRA, the Financial Industry Regulation Authority, handle the renewal of licenses. Check out their website for up-to-date information on deadlines and to obtain the correct forms.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Complete your MBA so that you stay competitive in your career at investment firms in Washington DC. Once you have been hired, most companies in the financial sector will insist that you complete your masters degree if you are actively putting together investment strategies for people, private corporations and public entities.