What You Need to Know About Investment Management

UPDATED: June 14, 2018

You may know it as Investment Management, but others also refer to it as money management, portfolio management, or private banking.  Basically, what it does is manage various securities and assets, such as bonds, shares, real estate, and other securities.

An adequate investment management firm seeks to achieve certain investment goals for the profit of its investors. These investors may be categorized as private or institutional investors. A private investor is an individual who has created contracts with a fund manager. On one hand, institutional investors are typically pension fund corporations, governments, educational establishments, and insurance companies.

To fully understand its function, let’s find out the three key roles of Investment Management. Furthermore, if you wish to discuss and explore your financial options with a consultant, you may contact Adam Jiwan.

investor’s financial goals

Evaluate client’s financial goals

One of the roles of an Investment Management firm is to evaluate the investor’s financial goals including how much is the client willing to invest, how much is the client expecting in return, and when will the client need access to the money.

Additionally, since investment is a high-risk market, the firm will need to assess also how much is the investor willing to risk losing.

Track possible investments

A client’s investment may consist of cash deposits, government bonds, and shares to newly set up companies with sporadic futures.  The firm’s services comprise of asset allocation, financial statement analysis, stock selection, and monitoring of existing investments. Meanwhile, in corporate finance, the firm ensures the investor’s tangible and intangible assets are maintained, accounted for, and leveraged.

The investment management firm handling your investment should be discerning of the possibilities and estimate each investment risk and returns. To fully learn and discover your financial risks and possibilities, you may consult Adam Jiwan.

Establish investment strategies

Investment Management likewise involves Fund Managers or advisors whose role includes overseeing a client’s portfolio. These Fund Managers or advisors should see to it that each portfolio matches the investor’s goal. Aside from that, to mitigate risk, a client must have a diverse portfolio wherein investments are distributed across various assets.

While firms may manage investments of private individuals, it may also handle investment funds for multiple investors. Oftentimes, firms may likewise invest in private equities. Take note as well that investment management firms entail recruiting professional managers, dealing, pricing, accounting, business development, marketing, settlement, internal auditing, running individual asset, and asset classes research.

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