What Is Investment Management?
Investment management refers to the management of various investments and financial assets, namely buying and selling such assets not just personally holding and trading them. Investment management includes devising a long or short term strategy for getting rid of and buying portfolio holdings. They are also responsible for monitoring and evaluating the performance of the portfolio.
The objective of the investment manager is to make profits for his/her investors by maximizing his/her knowledge of the market, asset class, sector, company history and profile and timing of purchases and sales. Investment management is part of money management or wealth management. Money management involves planning how and where to invest the owner’s money to earn maximum return. Whereas, in investment management, one plans how to buy and sell the investments. Also in money management, one is involved in creating an investment portfolio, which is used to achieve the set goals, objectives and strategies.
In short, investment management refers to financial strategies and the management of various investments. These investments can be made out of a range of financial assets including stocks, securities, futures and foreign exchange. The main idea behind these investments is to earn a profit either through initial purchase of the security or through rental returns. It also involves the process of providing advice to the investors on what financial assets would suit them the best and at what time it is most profitable to purchase these assets. Apart from this, it also takes care of the distribution of dividends, which is the return on the invested funds.