The Investment Management Process And Its Key Points

Investment management is the management of financial investments as well as financial assets, not just the purchasing and selling of them.

Investment management is the management of financial investments as well as financial assets, not just the purchasing and selling of them. Developing a short-term or long-term plan for attaining and disposal of portfolio holdings is part of management. Budgeting, banking, and tax services and duties may also be incorporated into this.

The phrase “investment management” most commonly relates to managing the securities in an investment portfolio and trading them in order to attain a certain financial goal. Portfolio management, money management, and wealth management are all terms used to describe investment management.

The Investment Management Process And Its Key Points

What does Investment Management do?

Professional investment management aims to achieve certain investment objectives for the benefit of customers who have committed their money to them. These clients might include individual traders or institutions such as retirement plans, pension funds,  governments, educational institutions, and insurance companies.

Asset allocation, stock selection, financial statement analysis, monitoring of current assets, and portfolio strategy and implementation are all part of investment management services. Investment management may also involve financial planning and consulting services, in which a client’s portfolio is not only managed but also coordinated with other assets and life objectives. Professional managers work with a wide range of securities and financial assets, such as bonds, shares, commodities, and real estate. Real assets, such as precious metals, commodities, and artwork, may also be managed by the investment manager. Managers may assist in matching investments to retirement and estate planning, as well as wealth distribution.

The Development of Investment Management Field

Investment management in corporate finance ensures that a company’s tangible and intangible assets are well-maintained, accounted for, and used.

The investment management sector is expanding, according to an annual analysis conducted by the research and advising firm Willis Towers Watson and the financial publication Pensions & Investments. In 2018, the worldwide sector had roughly US$93.8 trillion in assets under management (AUM) based on the combined holdings of the 500 largest investment managers. At the end of 2019, this value surpassed US $100 trillion.

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Blenda Rosen

Hi there! My name is Blenda, and I'm a Personal Finance and Markets Reporter at California/USA Today. I graduated from San Jose State University with degrees in Business Administration and International Business, and I'm a Certified Public Accountant (CPA) in California. My passion is creating personal finance content that resonates with my readers. I know from experience how daunting managing personal finances can be, and I aim to provide actionable advice that people can use to improve their financial situations. Whether it's budgeting, saving, investing, or retirement planning, I'm here to help my readers make informed decisions about their money.

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