Market Participants: Institutional Investors
Institutional investors are among the most trusted investors in the world. These are people who are responsible for a vast majority of all investments made in all markets world wide. From London to Japan, an institutional investor is widely regarded among one of the best people to go to when you have money that you want invested or taken care of to bring you a return on your investment and you can have a lot of faith in them.
An institutional investor can be an entity with some of the best investors in its employ. These institutional investors can be mutual funds, brokerages, pension funds and investment banks to name a few. These institutional investors handle large volumes of money
These institutional investors are considered knowledgeable and very cash-backed they have less regulations than other types of investors. For example, certain investors are quite regulated by the securities commission because they are not quite as knowledgeable as an institutional investor. Institutional investors are typically very market savvy and represent on any given day over half of all stock buys and sells on the New York Stock Exchange.
Many institutional investors enjoy a high return on investment. Some of the institutional investors who are involved in the markets report around a 10 percent return while some companies have boasted an over 20 percent return on investment. Sometimes these high returns can go on for years. These are excellent figures and a great way to invest money without much worry that you will lose your fortune.
Of course this can be misleading because although most institutional investors enjoy a very high success rate, there are always risks and losses even with these firms. You can lose a vast amount of money in any investment almost, and even with an institutional investor you can lose millions.
Many institutional investors have been open for many years and have the experience and numbers to back themselves up and their advertisements and word of mouth. The word of mouth is the best way for an institutional investor to gather new business. When business executives are telling their business executive friends about your outstanding institutional investment firm, you know you have a winner. There are several worldwide that stand out above the rest.
There are a new emergence of successful institutional investors coming out of India new. India has become a new powerhouse in the tech world and apparently are gaining notice in the finance world. They have some impressive number being reported and institutional investing in India has been one of the fastest growing sectors in the world. Japan, New York, and India are some of the busiest hubs now for investment firms.