Investment management often termed as financial management is a professional management of various assets and securities such as shares, bonds and real estates in order to meet a specific goal set by the investor. The investors may be any institution, be it insurance companies, charities, pension funds or educational sector or any private investor like mutual funds or exchange traded funds.
As a matter of fact, investment management comes with different terms such as asset management and fund management. Asset management refers to the management of collective investments whereas fund management refers to the management of institutional investments for the private investors. These are a one-time investment so make sure you place your bet on the right track. These investments are performed under the guidance of investment managers.
Who Are Investment Managers?
Investment managers are professionals who make investment on behalf of their clients based on the investment objectives and criteria set by the client. They are often known as investment management advisors. They may work individually or as a part of investment management firms. Investment managers are of two types: those who offer direct advice at individual level or businesses and those who offer asset related advice to corporate clients. Your choice depends on the requirement of your investment.
Objectives of Investment Management:
- Good return rate
- Reduced risk
- Safety of funds
- Money in future
- Protection against inflation
- Liquidity in emergency
How to Invest?
This is the foremost question that we ask ourselves when we start earning but this is not actually so easy. Wherever you invest your money, it always involves some risks. Before investing your money it is always recommended to analyse the risk against the possible returns.
Where to Invest?
After spending so much time and energy while earning money, we sometimes think about investment. It not only increase the amount but also makes our future secure. If you seek the help of your investment manager, he will provide you with a number of options where you can invest your money. If you want to go for a short-term investment, you can plan for fixed deposit options. They contain zero risk with assured guaranteed returns.
If you opt for a long-term investment, you can invest in properties. In case you are seeking for a high return then investing in shares will be the most appropriate option but it involves a great risk too. With the help of investment management you will be able to take the right decision in short-term as well as long-term investment. Here, the investment manager plays a very crucial role while selecting the best option:
- Stock market – It is very common and most beneficial place for any investor to invest his money. When you buy any stock, it means that you are buying a small section of a company. As the company profits, they will pay you for your share.
- Investment bonds – They are considered safer than stocks and the risk involved with it is also very less. You are lending your money to the government or any corporation for certain duration and they will pay it back completely with regular interest.
- Mutual funds – Mutual funds help you to increase your money by investing in different directions all at a time.
- Savings account – This is the least risky option where you can invest your money. You just have to deposit your amount in savings account and wait for the interest to be collected. It has low risks with low returns.
Investment management is actually a good process to multiply your savings and making your life better and secure but at the same time you need to study the risks involved with it. So, find a professional right now!