What Is Investment Management?
Investment management is a process in which an investment manager makes investment decisions for a client. The overall philosophy of this profession is to create wealth for clients by maximizing the value of each portfolio. The manager chooses which assets to invest in and when to sell them. The decisions are made by committee, with the help of external experts. There are also controls and procedures that prevent rogue funds from forming. If you’re looking to invest in a mutual fund or other asset class, investing through an investment manager may be the best option for you.
Most investment managers have a bachelor’s degree in finance, though a master’s degree is often helpful. Some managers also earn a financial certification such as the certified financial planner (CFP). Once they have a bachelor’s degree, they must register with the U.S. Securities and Exchange Commission and/or state in order to manage client money. Some companies are required to obtain a license from the SEC or state in which they do business.
The profession of investment management requires individuals with an advanced degree in business. Depending on the size of the investment portfolio, investment managers may be compensated through fees or other means. Other types of compensation include stock options, bonds, and fixed-income securities. These types of funds are generally very volatile and require a good manager who can make decisions based on their own experience and use tech-powered analysis tools. This service is best for those with a significant amount of money to invest.