The Discipline of Investment Management
The discipline of Investment Management is the process of investing. A successful manager will construct an asset allocation strategy and individual holdings that outperform certain benchmarks, such as a peer group of competing funds and stock and bond indices. The objective of the process is to maximize returns for investors, while minimizing risk. In addition, successful managers will create a long-term plan for their portfolios and keep it up to date with market trends.
Various types of investment management are available, with different types of investments and underlying market conditions. Most managers invest in a diversified portfolio, allowing them to achieve a more targeted, customized return. However, the process is more complicated than simply choosing the best investments. The job of an investment manager involves managing a number of different investments simultaneously. The investment manager must manage all of these accounts and make all decisions with the highest level of risk tolerance.
A person in the field of Investment Management must have the skills to manage assets and make informed investment decisions. Further education is necessary to work in the field. Generally, the individual should have a certification in investment management. Some designations include Chartered Financial Analyst (CFA), Certified Investment Manager (CIM), and Certified International Securities Analyst (CFA). Some firms also require graduate degrees in the field. Once in the field, it is vital to continue your education.