Quicken and QuickBooks are investment management systems from Intuit. Although both investment management systems applications are used for accounting, QuickBooks is not an expanded or improved version of Quicken. Quicken is a personal finance application, while QuickBooks is a small business double-entry accounting program. For personal financial application, many consider Quicken as the only choice since Microsoft Money was discontinued.
Quicken can be used by individual users only. QuickBooks, on the other hand, can be used by multiple users. The online version supports up to 25 users and an accountant. Most of the desktop versions of this investment management systems support up to five users. QuickBooks Enterprise Solutions supports up to 30 users.
QuickBooks contains a security feature that allows you to share some of the financial data of your business with your bookkeeper while keeping certain information provide and secure. You can set up multiple permission levels in this investment management systems so that you can provide access to only the data your user needs.
This investment management system offers some standard levels from which to choose or you can customize permissions. For example, you can set up accounts that only allow access to reports or time entry. On the other hand, Quicken has only two built-in levels. You can set a password for the entire data file and another password for transactions that occurred before a specific date.
Both of these investment management systems will help you create a budget and track your progress against it. However, only Quicken will help you develop a custom debt-reduction plan. It will even show you what you what you need to pay each month to eliminate your debt. This investment management system will also show you what you need to save to reach your retirement goals. You can also create savings plans for college, a house or other large purchases. QuickBooks will only keep track of the amounts credited or debited from your savings accounts.
There are three main portfolio techniques that form the basics of fund management system. The most conservative involves long-term investment in indexes. Slightly more aggressive fund management systems add the element of quantitative, strategic or structured trading to balance and maintain diversification in your portfolio. The most aggressive fund management system technique involves active trading, including long and short-term trend trading or marketing timing, and day trading.
A conservative method of managing your fund management system is by long term investment via dollar cost averaging in one or more stock market indexes using index mutual funds or index ETFs. The theory is that, over time, the indexes will always trade higher, so if you maintain a long term outlook and disciplined regular purchases, your portfolio will increase in value. Of course, that works when you are not continuing to invest in a long term bear market.
Balance and Diversification
Diversified funds invest in stocks in a wide range of companies from various industries, indexes and market sectors. This fund management system method uses a technique called Modern Portfolio Theory which applies quantitative analysis to regularly re-balance your portfolio by selling out positions that have lost money, lost market momentum, or significantly appreciated in value. Using the money raised, it will invest in other stocks or sectors that might be more promising in terms of future returns on investment. This fund management system method reduces sector and cycle risk but is vulnerable to market risk.
Rule-based day trading is a more organized form of active trading that attempts to control risk by following pre-defined methods. This is, however, the most risky form of fund management system that involves what professionals jokingly refer to as “Got a hunch? Buy a bunch?” trading. Although not a true formal technique, this may be the most often-employed fund management system technique across all markets.