Investment Management
(Asset Management or Financial Management)
What Is Investment Management?
Investment management has many similarities to finance management but investment management is more specific and narrow area of finance. Investment management is a process of securities selection, trading ececution, market monitoring, securities valuation and decisions making trying to reach the best return on investment.
Corporate finance may have a different understanding of investment management: corporations can invest not only in securities like stocks and bonds, but also in to any fixed assets used in company’s activity.
However, under the classical understanding of investment management investments in financial investment instruments is the main object. In some cases investment in real estate or other tangible investments may be included in the portfolio. But ussualy real estate management is separated from financial investment management, because it requires a different specificity although it has some characteristics in common.
Investment Management Choices
As the investment management requires considerable financial and market knowledge, not every investor decides to manage their investments by themselves. Trusted investment adviser can help in such cases, but unfortunately, in practice independent consultants are quiet rear and expensive and it would be difficult to find the best one. The investment adviser (consultant) differs from investment manager as the first one only gives the advices for you and helps in the investing process while you are still responsible for the decision, the investment manager takes a full responsibility (only morally) and the investing process for himself and the owner of the investments may not even intervene in the investment process.
Whatever the hard case with the good consultants would be, if you have a lack of knowledge, then would be quite a risky to manage your investments without an experienced advisor.
HOW TO MANAGE YOUR INVESTMENTS PROPERLY
Also read:
Investment Performance Measurement
