Investment Management is an important part of personal finance. Professionals who specialize in the field analyze an investor’s financial circumstances to come up with an investment plan that fits his or her needs. These clients can be individuals or institutions like pension funds, insurance companies, and governments. The investment manager’s role is to advise and invest the money of each client based on his or her profile. To make an investment strategy, an investor should first evaluate their current financial situation.
An investment manager pays himself a management fee, which is a percentage of the portfolio value. The fee ranges from 0.35% to 2% per year on a sliding scale, but the average rate is around 1%. This fee is paid by the client to the investment manager based on the performance of the portfolio. After all, he or she is responsible for the management of the client’s funds. Having an investment manager will help you increase your return and reduce your risk.
An investment manager should be able to guide you toward achieving your financial goals. To do so, an investment manager will analyze your financial profile and work with you to define your goals. These goals will determine the amount of risk you should assume, the return rate you want to achieve over a certain period of time, and the relative percentages of your wealth you wish to invest in short-term and long-term assets. A good investment manager will be able to help you identify the right portfolio and allocate it accordingly.