Investment Management – An Overview
Investment Management is an area of finance that concentrates on the management of financial assets such as cash, marketable securities (like stocks), personal assets, and other financial assets. Investment management is an area of banking that focuses on the strategies involved in the purchase, ownership, selling, and the collection of cash from the financial assets held by the bank. Investment management is also known as wealth management or wealth-management, and it involves the organization and supervision of the whole process of gaining and protecting wealth, particularly during retirement and at old ages. The main activities of an Investment Management department include research and analysis of the economic and social situations around the world, and designing policies that would protect wealth.
The major objectives of investment management are to provide the medium to long-term investors with favorable returns on their investments and to ensure the secure storage and safe guarding of these investments. The different methods of investment management include: asset allocation, asset management, portfolio management, estate management, insurance and capital market administration, cost allocation, and bond administration. All these methods are applied to create a plan for how the investment managers would protect, increase, or decrease the value of the holdings. The methods used for applying these methods are specified in the investment plan that the manager is executing. Usually, the plans are approved by a series of meetings and evaluations involving the various levels of management as well as key team members.
As per the law, investment management refers to the processes involved in managing financial assets. The purpose of this system is to provide investors with information relating to their holdings. This information enables them to make decisions regarding when to sell off their stocks or bonds or purchase new ones. It is important to understand the entire legal framework of investment management to ensure that one obtains the desired results and benefits from his or her financial investments.