The Components Of Investment Management

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Investment management or financial management is the professional asset management of various securities shares, bonds and other securities, other assets like real estate in order to meet specified investment goals for the benefit of the investors. 

Investors may be institutions insurance companies, pension funds, corporations, charities, educational establishments or private investors. Both directly via investment contracts and more commonly via collective investment schemes like mutual funds or exchange-traded funds. 

Since an investment is made with the intention to gain profit. An investment objective, in regard to personal financial planning, is the purpose a particular portfolio serves for the individual’s or the investment advisory client’s financial needs. 

Such as a reward, a return but with return can also pose risk and return; and time is also a factor when it comes down to investment.  Diversification can help reduce volatility and smooth out returns over time.  

This often starts by investing across asset classes and also by investing in different companies, industries and countries. Therefore, it’s important for investors to protect their downside even if it means missing out on some of the upside. 

Although sometimes it may be required to bring in a specialist such as an Investment manager also known as fund or asset manager. These are the people as the name suggests who manage investments of private investors, corporates, banks or insurance companies. Investment managers make their clients’ money grow by using investment banks to buy and sell investments.

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