Understanding the Definition of Investment Management
Investment Management is a branch of investment management which focuses on the macroeconomic, geo-political, and technical aspects of the global economy. The term is also used in a much broader context, to include the economic policies of a country or an organization, which decides how to allocate resources to reach long-term goals and objectives. Investment management therefore, encompasses all types of financial management, with the exception of the macro economic and policy issues which are usually dealt separately. Investment management is therefore, the discipline of asset allocation for the purpose of meeting set financial goals of an organization or a country. This is usually done by professional investment managers and is sometimes called economic investment management.
The main objective of the manager of the portfolio is to provide sufficient resources to investors so that they can earn a higher return. This objective may be related to marketability, yield, cost, maturity, risk, and other factors. Many organizations offer investment management services to corporations and individual households and individuals. These companies offer a wide variety of solutions for a wide range of asset allocation needs. Some of these companies provide complete services while others just offer a portion of the services. There are companies that specialize in particular types of investments, like foreign exchange, bond, and real estate investments, while there are many others that provide a full range of the above solutions.
Most of these companies work closely with their clients to develop an integrated money management and investment portfolio. The main aim of an investment manager is to create a plan that will help the firm meet its long-term and short-term goals. They try to minimize risks and maximize returns through a systematic approach. Many of these companies also have a dedicated team of finance experts who handle the day-to-day financial operations of the firm. Therefore, investing with such companies can be very cost effective, while having a high Return On Investment (ROI).