|
Investment management could be defined as a profession of managing the assets of an individual, group of individuals or institutions, or corporate. Investment management is another term coined for the term asset management. Investments can be of two types either it can be various financial securities or it can be assets. Securities include stocks, bonds, certificates of deposits etc. Assets majorly include land, house, patents, gold, antiques etc. They include two types of investors namely institutions which include mutual fund companies, provident fund institutions, insurance companies. It also might include investors who are put into the category "private" and they include investors who are individual in nature like the annuity and mutual fund investors.
The major objectives of these investors are to increase their return by investing in the right instrument and at the right time for which they need some professional advice. They investment management firms help these investors to do that by providing them some professional advice since they would have some better idea about the current market condition and it could predict the market more certainly compared to others.
These firms are categorized under the services industry and have led to the intuition of many new financial professions and jobs too. The process of investment management includes the following steps:
1. Investment listing and selection
2. Analysis of the firm's financial statement
3. Selection of a particular asset or stock compatible with the firm's financial position
4. Monitoring the current investment portfolio of their client.
The various assets management by this industry as a whole in global perspective almost dropped to the bottom by almost nineteen percentages in the beginning of the financial year 2008 but at the end of 2008, it dropped to around seventeen percentages. These assets majorly included all kinds of assets by all type of investors like individuals with highest wealth and also firms & institutions. There was a continuous growth in the global investment management market for a period of 5 successful years preceding the year of recession i.e., 2008.
A brilliant professional would first analyze deeply the financial status and policies of the company before taking any decisions, then decide upon the diversified investment opportunities, and then build an appropriate highly profitable portfolio. After taking care of all this he would keep monitoring the growth and evaluating the risks on timely basis and hence gain the support of its clients and thereby reduce uncertainty. |