Categories Investment

Importance Of Investment Management

Investment management is a category of asset management that refers to the management of the investment of securities. These include assets like stocks, bonds and land among more. The one doing the investing is usually anyone from an individual to a company to a corporation to a government. The whole point of investment management is to raise the net values of the capital assets through investment. So, for example, an educational institution could simply place its extra income in a fixed deposit with the bank. But why do that when it could be earning far more on the share market. However no one at the institution is qualified to know how to invest, which is why they would approach a bank or company dedicated to investment management services.

When choosing an investment management company to handle your assets you should investigate a few first. Find out what their strategy is. Do they believe in buying stock of well-established companies with high costs and a guaranteed increase in return that is slow but sure. Or do they prefer to invest in stocks of a new company that is low in investment, riskier, but can promise high returns quickly. Do they do all the research in-house. Or do they outsource their information. Do they have any safety net factors. What has their previous track record proven. Find out about their successes and even the reasons for their failures, if any. Is it one person on the team, or just one fund manager handling it all. Or is it a team with a fund manager at the top of the hierarchy. What is the turnover of employees. How does the team operate together, etc. With this information you can gauge how well your investments will be managed since there is a complexity to the art of investment compounded by the complexity of human intervention.

The benefit of going to investment services to manage your investments is that they will take into consideration your proclivity or aversion to risks. They also work around the size of your capital assets and will help you meet your goals in a timely fashion. For this, the investment manager will allocate your assets into diverse products to have a portfolio that is well balanced and eclectic. The right fund manager will also know how to allocate your funds such that you are able to save on the capital tax accrued on them. And since divestment is a part of investment, a fund manager will know the right time to liquidate your investments for maximum return or reinvestment.

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