Investment management is an essential part of the investment process. Investment management is the professional management of different financial assets, including common stocks, derivatives, government bonds, and many more financial assets, like real estate, personal property, and the likes. This process helps make investments more effective and efficient by ensuring that investments are made with a view to producing the maximum amount of returns for the investors who have put their money into these assets. There are different areas of the business world that are managed by investment management. These include asset allocation, portfolio management, asset protection, investment strategy, cost management, and other areas as well.
Asset allocation is one of the most important areas of the business world where investment management plays a major role. This involves the whole array of financial holdings that are used in day to day business operations, such as fixed deposits, preferred stocks, mutual funds, and more. Assets can also be divided into different categories like fixed income holdings, growth capital, and other such holdings. Growth capital is one of the areas where strategic investment managers look at different sectors of the business world. They look for industries with high potential for growth.
Another important area of the business world that is effectively managed through investment management is asset protection. This is done by minimizing the risks of losses and maximizing the returns on such financial assets. This can be done by minimizing the tax burden on profits and dividends by making proper use of estate planning strategies. It also includes the strategies and techniques used to ensure tax exempt status of such investments, both foreign and domestic.