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Investment management is the specialized management of different securities (equity, bonds & debt instruments) & assets (real estate.) These companies are intended to meet specific investment targets for the profit of the investors. The investors could be both private and institutions.
As a matter of fact every individual practices investment management on a daily basis. They do it in the form of cutback, investing, budgeting & expenditure.
In general, most investment management solution providers offer services, which include financial statement analysis, stock selection, asset selection, investment planning implementation & current monitoring of investments.
An investment manager specializes in both advisory & discretionary management. When the investment manager gives suggestions to where to invest the money & when to sell securities, he is practicing advisory investment management. When he takes total control over the management of portfolios without the client's permission, he is practicing discretionary investment management.
Investment management by itself is a macro global industry because it deals with a large amount of currencies (dollars, Euros, pounds, etc.) As a matter of fact the world's biggest companies are partly investment managers. They employ huge number of people & make tremendous revenue.
The term Fund Manager refers to both an individual who directs fund management decisions & also a firm that provides investment management solutions.
The investment management industry has many aspects, including the employment of specialized fund managers; examine assets & asset classes, promoting, trading, settlement, internal auditing & the planning of reports for clients. Marketers & the fund managers alone do not form a investment management company. This company also has legal staff to take care of the governmental & dogmatic constraints of the company, internal auditors to inspect in-house systems & controls, monetary controllers to account for the company's inward & outward monetary transactions, workstation experts & back office staff.
The investment plan is set based on the objective of the investor. The investor-related constraints such as financial power & risk outline are taken into consideration. The environmental constraints, such as government rules, market circumstances & current state of economy also play an important role.
Few setbacks of investment management solution providers are:
* Booming fund managers are very expensive & can be easily roped in by competitors.
* Returns are directly linked to market valuations.
* Above-average fund accomplishments are very difficult to maintain & clients may not be tolerant at the times of pitiable performance. |