What is investment management?
Investment management is a category of asset management that refers to the management of securities investment. It is the process of managing the money that is used for investments. The institutions employs a manager to invest their money and manage it . These include assets such as stocks, bonds and land among others.
The one who makes the investment is usually anyone, from an individual to a company, a corporation or a government. The main objective of investment management is to increase the net values of capital assets through investment.
Thus, for example, an educational institution could simply place its additional income in a fixed deposit in the bank. But why do that when you could be earning much more in the stock market? However, no one in the institution is qualified to know how to invest, so they would approach a bank or company dedicated to investment management services.
Investment profiles are managed through sound decisions about security, purchases and sales. Investment management advisors provide investment management services that include money management, investment projections, investment advice and investment management planning.
Investment management advisors can work as individual entities or can be a part of investment management firms.
Those who work for accredited investment management companies are preferred to solo agents because of their credibility and reputation. These agents usually hold university degrees that have obtained bachelor’s degrees in business and also have relevant experience in investment management in their belts.
Investment management meaning
Therefore meaning of the term “investment management” is the process of purchase and sales in a portfolio to achieve specific investment objective.
Investment management advisors
- An investment manager is a person or organization that makes investments in securities portfolios on behalf of clients according to the objectives and investment parameters defined by the client.
- An investment manager can handle all the activities associated with the management of client portfolios, from the daily purchase and sale of securities to the monitoring of the portfolio, the settlement of transactions, the measurement of performance and regulatory and customer information.
- Investment management advisors are supervised by government agencies and private investment management associations to guarantee the quality of their services.
- Certifications issued by government agencies and private associations protect investment management advisors and their clients alike. They are subject to the laws and regulations that govern money management and must meet strict requirements prior to certification and registration as qualified investment management advisors.
- They work to ensure client confidentiality and provide full disclosure of all investment agreements. Most, if not all, investment management advisors are also authorized brokers to allow them to carry out sales and buyers authorized by investors.
Investment management advisor types
There are two types of investment management advisors: those that offer direct financial advice to individuals or companies and those that offer asset management for corporate clients.
The services offered by the investment management advisors are not free. The usual rate charged by these advisers varies depending on the project, the monetary investment involved or the current situation they advise.
They also charge higher rates to corporate accounts than to individuals because of the complexity of the tasks when dealing with larger companies. Your fees can be calculated percentages of assets earned, annual fees or even hourly rates.
Importance of investment management
- You can receive best investment solutions.
- It increases the return on investments.
- Business goals can be easily fulfilled with more efficiency.
- You can secure your investments.
Objectives of investment management
There are several objectives of a portfolio management.
- Capital Preservation: Safety is an extremely important factor in investment management. Inventors tend to preserve their cash in banks, savings accounts, or treasury for safety.
- Maketability: A good investment is the one in which marketability is easier. It should have a good liquidity of getting converted to cash by easily selling it. Common stock is highly liquidable, since it can be sold within a day.
- Increase Income: The investment management should yield stable income. Companies usually invest in stocks that yield high returns or dividends.
- Growth of capital
- Tax Minimization
What investors look for before investing?
When choosing an investment management company to manage assets, investment managers investigate some things first.
Discover what your strategy is? Do you believe in buying shares of well-established companies with high costs and a guaranteed increase in returns that is slow but certain? Or do you prefer to invest in shares of a new company that is low in investment, more risky, but that can promise high returns quickly? Do they all the research in-house.
Or do they outsource their information? Do you have any safety net factors? What your previous record has shown? Find out about their successes and even the reasons for their failures, if any. Is it a person in the team or just a fund manager who handles everything?
Or it is a team with a fund manager at the top of the hierarchy. What is the turnover of the employees? How does the team works together, etc. With this information, you can evaluate how well your investments will be managed, since the art of investment has a complexity that is aggravated by the complexity of human intervention.
Investment management jobs
Some of the different job positions you may acquire in investment management career are these:
- Financial manager
- Risk manager
- Investment banking sales agent
- Insurance underwriting
- Budget analyst
- Investment advisor
Investment management salary
The average salary of the Investment Manager in the United States is $ 126,644 as of 2019, but the range is generally between $ 85,927 and $ 145,934. Salary ranges widely depending on many important factors. Some of the factors responsible are education, experience work, certifications, additional skills, the number of years you have spent in your profession etc,.
Investment management vs investment banking
- Investment management is about investment decisions and asset allocation. This means creating investment strategies and directing the funds to the property, shares or debt securities on behalf of the clients. Many in the industry refer to this as the “buying side,” where investment products are bought with the hope of generating profits. On the contrary, investment bankers are negotiators. They work as high-level consultants and analysts for large companies (usually corporations) to help with initial public offerings (IPO), stock purchases, mergers and acquisitions (M & A) and other capital raising techniques. Almost all investment bankers start as associates or analysts and expect to dedicate enough time to reach a role of vice president or general manager.
- The competition in both the careers is very tough. It requires the candidate to possess master degree in business and have good problem solving and verbal communication skills.
- These are two major fields in the finance industry in which the salary is very high and so is the work load and pressure.
Functions of investment banking
- Investment banks offer to help clients with different transactions based on bonds and securities. Clients receive advice on the proper acquisition of properties and assets.
- Customers also buy from banks the bonds and securities that would constitute these investments and then provide them with profits without working to use the investment.
- With the discretion of these investment banks, the client’s investment will be used in the market as another investment, which will provide the customer’s dividend in the specified periods. Investment banks not only protect these assets but also assume the risks for the client.
- These banks have the greatest loss if investments fail. These investment banks usually offer advice to several clients that operate on a small or large scale. They can meet the needs of small businesses, but they can also be experts in helping large companies.
Investment management software
- Broadridge Investment Accounting
- Vantage Software
- Wealth Management Platform
- TeamWox GroupWare
- Wizetrade Commodities
- Wealth EOffice
- Floodlight Investing
- Ad Network Hub
- Agilis Investment Management
- RedQuarry RMS
- Argo Trading Platform
- fi360 Toolkit
- Argo Trading Platform
- Asset Manager
- Complex Interests
- FINTRX Platform
- FA Solutions
- Advisor Desk
- Investors WorkStation
- Parilux Fund Manager
- Agilis Investment Management
- AJ HYIP
- ATOM Align
- Atomic Intelligence
- B2B white-label robo advisory
- Bankers Realm
- Bancstreet Asset Management
- Broker-Lender CRM
- Charles River IMS
- CU SHARE
- ETNA Trader
- Formula Stocks
- Focus:360 adviser
- FINFOX Pro
- Global Wealth Platform (GWP)
- HYIP Manager Script
- Global WealthES
- HYIP Investment Script
- IDEAL Wealth & Funds
- Investment Account Manager
- Horizon Portfolio Management
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