A forex fund management firm consists of a team of experienced professionals, and typically assigns a forex fund manager to operate your account with only one objective in mind: help grow your investment, while ensuring it remains safe from any risks posed by the vagaries of the forex market. If you want investments to feature among the best forex managed accounts at the end of a financial year, then your chances improve significantly by employing the services of a firm.

1. Beginner’s Guide to Forex Fund
Management & Its Benefits
Whether it is ever-reliable blue chip stocks or never-resting foreign exchange (forex) markets,
investors and traders of the 21st century have access to more trading instruments than they know
what to do with. Global trading has been democratised by the rise of the internet to such an
extent that anyone in the world, regardless of their location or time constraint or trading
experience, can participate in an expanding array of markets.
The Indian stock market, for instance, added ₹72 lakh crore to investor’s wealth in 2021 alone.
This spectacular growth was primarily propelled by increased participation from emboldened
individual investors, which was reflected in the number of Demat accounts swelling from 4.09
crore at the end of 2019-20 to 7.38 crore by 31 October 2021. That, coupled with the historic
easing of monetary policy and fiscal expenditure, has allowed fund management to come the fore
like never before.

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Fund Management, explained
Fund Management is defined as a process in which an investor hands over their financial assets
to a fund management firm, with the objective of using those funds to invest in currencies or
organisations (which in turn use them as operational investment) — and eventually achieve profits
on the initial investment. At the end of the process, the original investor, who could be an
individual or a company or a pool of investors, regain their original investment plus profit, of
which a small percentage goes to the fund management firm as compensation for their services
and achieving the objective.
Fund Management, in other words, deals with the management of a financial institution or an
individual’s inflow and outflow of cash. Since money is never stationary and always on the move,
it is paramount that any asset-liability discrepancies are never given a chance to rise. For example,
Bangladesh’s Central Bank recently had no choice but to step up its efforts to avert further
volatility in the forex market with mandatory submission of reports on all spot deals by 4:00PM
each workday. Such extreme measures could have been avoided in the first place if better forex
money management strategies were pursued.
However, to be fair to central banks all over the world, the forex market is a different beast
altogether.
Unique nature of Forex Market
The foreign exchange market is the world’s largest financial market, dwarfing other types of
funds with a daily market turnover of $6.6 trillion in 2020, up from $4 trillion in 2010. With a
40% increase in daily trading volume over the last decade, a rising wave of FX swaps in liquidity
management, and hedging of foreign currency portfolios, top forex fund managers have never
been in greater demand than they are right now.
There are also other peculiar characteristics inherent to the forex market.
1. Short-term traders are especially attracted to it due to its penchant for high volatility.
2. Traders can take up a significantly higher level of leverage while dealing with foreign
currencies — up to 50:1 in some cases (stocks are usually associated with 2:1).
3. And, as an added incentive for international traders who suffer from insomnia, the
forex market is active non-stop from 5PM EST Sunday in Sydney through 5PM EST
Friday in New York.

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Thus, managed forex trading has virtually no obstacle in its quest for growth in the foreseeable
future.
Why you need a Forex Fund Management Company
Just because there is no obstacle doesn’t mean that any trader with a half-baked forex money
management plan can simply walk in and win big. Some of the very advantages that make forex
trading so attractive also have a flip side to them.
High levels of volatility prevalent in the market could lead traders to take greater risks, leaning
too aggressively on leverage to make margin calls, only to incur losses far in excess of their
original investments. Since the market operates round-the-clock, there is a chance for exchange
rates to fluctuate before trades are settled, introducing an element of transactional risk.
There are additional risks involved: the fall or rise of a country’s interest rates can have a
dramatic effect on prices; during highly volatile conditions, a counter-party might refuse or is
unable to meet the conditions stated in contracts; and excessive speculative activity, perhaps
resulting in currency devaluation, is sure to attract the wrath of dealers and authorities.
In other words, you need a solid understanding of macroeconomics and international politics
and financial policy to pick up the skills required to safely navigate the capricious world of forex
trading. If that sounds like a lot, don’t worry. Some of the best forex managed account services in
the world are available to you right now at the click of a few buttons — starting with Allied Asset
Funds.
How you benefit
A forex fund management firm consists of a team of experienced professionals, and typically
assigns a forex fund manager to operate your account with only one objective in mind: help grow
your investment, while ensuring it remains safe from any risks posed by the vagaries of the forex
market. If you want investments to feature among the best forex managed accounts at the end of
a financial year, then your chances improve significantly by employing the services of a firm.
Some of the ways in which a fund manager administers cash flow to your benefit are as follows.
1. Hedging: One of the most sensible methods to reduce the risk of unwanted moves or to
mitigate loss is by hedging, and fund managers have all types of varieties up their
sleeves, including hedging with multiple currency pairs.

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2. Conform with regulations: Forex trading in India is regulated by the Reserve Bank of
India (RBI) and protected by the Securities Exchange Board of India (SEBI), and
comes with a long list of “do’s and don’ts”, but you don’t have to scratch your head over
the finer details — your fund manager will.
3. Objective decision-making: It is simply impossible to keep your emotions aside when
you invest with your own money, whereas fund managers rely solely on careful analysis
of data and trends to guide their decisions.
4. Tools & Strategies: With access to real-time insights, powered by Big Data and A.I., and
real-world experience with a wide variety of investment-related strategies, fund managers
are far better equipped to achieve your objective than when you’re alone.
To conclude, Forex Fund Management is a convoluted process involving a lot of financial
expertise, in-depth research on esoteric topics, and round-the-clock changes. That is why you
need an experienced and dependable partner like Allied Asset Funds in your corner to handle
your valuable assets.