The profession of Investment Management combines many different disciplines. A person in this field will manage an entire portfolio, coordinating all of the investments and activities related to it. An experienced professional will take care of the decisions and oversee the implementation of a cohesive investment strategy. A client may turn to investment management for advice or a second opinion in making decisions about their investments. The following are just some of the benefits of employing an investment manager. But before you make a final decision, ask your guidance counselor about this career option.
The industry is highly competitive, and it can offer very lucrative returns. The problem is that the revenues of an investment management firm are directly tied to the market’s behavior. This means that if an asset’s price falls significantly, a firm’s revenue will also go down. It is easy to see how these issues can derail the entire business. A major decline in asset prices can wreak havoc on the profits of an investment management firm. Even if its funds are performing well, it may not be enough to sustain the client’s portfolios. Two sources of challenges have hit the industry since the mid-2000s:
As a result, investment management has become a highly specialized field. A professional investment manager will focus on the needs of a client and devise a strategy to achieve them. In addition, they will divide the portfolio into different types of investments, depending on the client’s risk tolerance, timeframe, and budget. Ultimately, an investment manager will help the client achieve his or her financial goals. Once the goal is determined, an investment manager will help the client manage his or her money so that they can focus on their other important tasks.
