Investment Management Software vs. Traditional Methods: Which Is Right for You?

More people are investing than ever, and this is due to the large amount of money that can be made. Some invest over shorter periods, some longer. If you are somebody with an interest in investing, be that in stocks or shares, currencies, or precious metals, you need to figure out how you are going to manage and keep track of your various investments. There are a few ways you can do this, from using investment management software to more traditional methods, i.e., keeping written logs or hiring an investment manager. This post’s intention is to explore this topic in more detail, which it will do by hopefully helping you to decide which investment management strategy is right for you.

1. Software Automation

One of the greatest benefits of using investment management software is automation. Basic tasks like creating reports and adjusting portfolios can be fully automated, saving you a lot of time. The average investor doesn’t want to devote all of their time to their investments. Most work jobs unrelated to investing and do other things with their time. Whether it’s Thinkfolio, a popular investment management program, that you work with or Thinkfolio competitors, look for automation. Most software manufacturers will openly advertise product automation status, because it is a talking point, so you shouldn’t have a hard time finding one.

2. Human Insight

In all honesty, investment management software is much better than any traditional investment management strategy. The reason for this is that investment platforms have been finetuned to include all effective traditional methods, and these methods have been optimized for performance. However, one good thing about traditional investment management that you don’t get as much of when you use software is human insight. Humans are some of the smartest creatures on the planet, and when you have a good investment manager or just somebody with a high IQ taking care of your investments for you, you benefit from their intelligence and ability to spot problems that machines can’t.

3. Data and Analytics

Going back to software, another benefit of using it is that you are able to see real-time data and analytics reports. Most investment management software will generate reports on request. However, it is worth noting that the reports offered by some platforms are not as good as the ones generated by others. Another of your main priorities as somebody who’s searching for investment management software should be finding a platform that has the ability to provide detailed reports and performance reviews in an instant. The best way to find out what a particular program’s reporting is like is to use the internet to look for examples of reports that the program has generated in the past.

4. Building Relationships

Something that’s true for almost every task completed in the company of others is that you can build relationships. Investment management is no exception to this rule. You can use your investments to build relationships with other people. When you work with an investment manager, you will likely become friends with them, assuming you see them on a regular basis. Getting to know them also increases your chances of being given further investment opportunities in the future. Your investment manager will get in touch with you when they have opportunities they think you could benefit from.

5. Greater Scalability

Scalability is another benefit of using investment management software. When you use traditional methods to manage your investments, scalability can be a big problem. You often have to invest a lot of time and even more money into upgrading your management systems, i.e., buying larger filing cabinets, storing documents in more secure folders, and organizing paperwork. The scalability of investment software is unmatched, however. You don’t have to worry about anything because the platform you use will be easily adjusted, so you can increase or decrease the amount of storage you use.

6. Direct Control

One benefit of traditional investment management that you should know about is that it gives you direct control. You do not have to go through any software or platform to access your investments. All the information you need will be available at your fingertips. However, this also means you have to store everything physically, which can be very dangerous. Online security is much more robust than physical security can ever be. It is also possible nowadays to get offline investment management software, so you do not need to worry about finding an internet connection to manage investments.

Investment management software is, without a doubt, the superior way to store data and manage investments. Hopefully, the guidance given here will help you to see why this is. Use the information offered here to make a good decision about how you manage investments.