43.3% of all U.S. households own some shares in an investment fund. In addition, most of these investment fund owners believe that their stake in that fund is a crucial component to achieving financial goals. Further, the median amount invested in mutual funds by these households was $103,000 with over two-thirds of households having the majority of their financial assets in mutual funds.
First things first, if you want to invest money into an investment fund then it is crucial that you know what type of arrangement you’re getting into beforehand. Let’s briefly recap investment fund basics. There are several different types of funds that all fall under the general category of investment funds including hedge funds, mutual funds, money market funds, and exchange-traded funds. Each of these funds has their own unique priorities and risk tolerance.
Another key characteristic you should understand prior to investing is the financial structure of an investment fund. When you put money into an investment fund, you’re essentially trading the right to manage your money over to a fund manager in exchange for a specified return on that money. Investment funds are commonly categorized into open-end and closed-end funds.
If you’re looking to diversify your portfolio a bit and invest in a reliable market, then check out this list of investment funds based on ventures and businesses in New York.
1. T. Rowe Price (PRNYX)
This investment fund primarily deals with municipal bonds issued in the New York metropolitan area, which are relatively low-risk assets based on its standard deviation values for a risk return category. The goal of the fund is to provide safe portfolio management and the highest income from tax-exempt returns through investment in public infrastructure in New York.
2. Vanguard (VNYTX)
This is another investment fund dealing with lower risk, tax-exempt municipal bonds. This fund is intended for people living in New York dealing with the costs of higher tax brackets. The fund is a relatively long term investment because it is composed of high-quality, long term municipal bonds that have an average duration of 6-10 years and a fair degree of interest rate risk.
3. Goldman Sachs Asset Management (GSLC)
Goldman Sachs’ Large Cap Equity ETF is a smart move if you’re looking to invest in a New York based company dealing with handling the securities of a number of major companies, like Microsoft, Apple, Johnson & Johnson, Amazon, and so forth. The benefits to investing in this ETF are an increased chance to outperform the market, diversification, and lower costs.
4. Kohlberg Kravis Roberts & Company L.P. (KKR)
KKR is one of the largest private equity firms in NYC, and manages a huge asset base that includes three dozen pension plans and a number of NY companies in its portfolio. In particular, KKR utilizes an investment strategy that focuses on investments in distressed or transitioning companies that aims to boost the value of these companies by making significant changes to strategy, operation, or structure.
5. Green Horizon Capital Management LLC.
If you’re looking for a more personalized experience when it comes to determining the best course of actions to take when making investments, Green Horizon Capital may be the ideal choice for you. The firm focuses on customizing client portfolios in a manner that is cognizant of the client’s financial restraints and risk tolerance. The company is based in New York as an investment advisor and specializes in managing and creating portfolios with long-term horizons.
6. Apollo Global Management LLC (APO)
Apollo manages another set of notable investment firms and is based in New York as well. The selling point of Apollo lies in its use of nontraditional and traditional approaches in selecting investments to optimize value creation. The business focuses on private equity, credit, and real estate.
7. Warburg Pincus LLC
Warburg Pincus is one of the oldest investment firms founded in New York in 1966. They have a broad and diversified portfolio (of over 780 companies) that spans across many countries and industries. Further, the firm focuses more on growth investments and spin-offs than leveraged buyouts. The company seeks to create sustainable value their asset management strategies.
8. Two Sigma Investments, LP
Two Sigma Investments takes the approach of using the latest technologies and mathematical research to build a data-driven framework for financial applications. The company believes in using a primarily evidence-based and empirical approach in order to generate successively greater and more consistent returns over time.
