Investment management is the practical application of financial management, including financial assessment and planning, in relation to the purpose of gaining greater returns on assets and securing future wealth creation. Investment managers are involved in the analysis and evaluation of investments for the purpose of generating returns. This field of management also includes financial counseling and advice to families, individuals, business establishments, and governments. It deals with the buying and selling of financial instruments for the purpose of gaining more returns and preventing loss. The role of investment manager is vital in determining suitable investment strategies and financial goals that can be achieved through investments and maintaining compliance with regulatory requirements.
Investment management refers to the practical application of financial management, which includes financial assessment and planning, in relation to the purpose of gaining greater returns on assets and securing future wealth creation. This involves the buying and selling of financial assets for the purpose of gaining greater returns and preventing loss. Although this field of financial management includes many processes, each of these processes is important for sound investment management. It also involves the use of economic tools such as asset valuation, financial statements, and interest rate predictions. All of these processes and practices can assist managers in their decision-making process.
An investment management specialist has a number of responsibilities. First, he/she should develop an appropriate investment portfolio in accordance with his/her strategy and needs. Next, he/she should monitor the performance of the investment portfolio. In addition, he/she should create policies to guide the investment portfolio’s use. Finally, he/she should provide periodic reports on the status of the investment portfolio and the wealth management strategy to the management team.