Investment management is the professional skillful asset management of diverse securities, such as stocks, bonds, equities, and various other financial assets, for the advantage of investors in order to fulfill defined investment objectives. The objective of this management is to maximize returns from financial investments in the form of dividends. It is an area of endeavor that demands expertise and skill and can be implemented by trained professionals. Some of the methods used include: matching an investment with a compatible financial sector (such as the corporate sector), buying an attractive financial product (for example an emerging market micro cap stocks), pooling funds, derivatives, price measurement, financial spread betting, tax optimization, and reinvestment. These management techniques are meant to increase return on investment by ensuring the safety and optimal utilization of existing resources and derivatives.
A professionally developed investment management system is able to achieve long-term planning and execution. It can also help make better use of the available resources and avoid any unwanted risks. Proper money management helps to minimize financial losses, while achieving superior returns. Thus, an investment portfolio management helps in maximizing the benefits of investment in all investment phases.
An effective investment management system is able to integrate all the aspects of transactional funding, asset allocation, risk management, and planning. This helps individuals and institutions to meet their investment goals. Investment managers help individuals and institutional investors to create an investment management strategy, as well as the implementation of that strategy. They also help individuals plan for retirement, provide overall investment management support, and provide advice concerning specific investment objectives, such as buying or selling options, stocks, mutual funds, commodities, or securities.