Some investors have direct contact with an asset manager which allows them to benefit from the expertise of qualified investment professionals. This also allows them to gain access, in a cost effective way, to a wider range of investments than would be available to someone who chose to do it themselves. Others will benefit from that expertise indirectly, as asset managers also manage pension funds and are at the heart of many investment products offered by insurance companies and banks.
Some investors (whether individuals or institutions such as pension funds) will invest through regulated funds where their savings are pooled with those of other investors with similar investment goals. Others, particularly those with more to invest, may choose the option to specify their own “mandate”, meaning that the asset manager will offer a tailor-made solution to meet particular investment goals.