Investment Management signifies professionally managing the assets such as securities like bonds, equities and other debt instruments and real estate.

Investors including individuals, banks, firms and companies in the investment market sought the professional investment management services for strengthening their investment strategy and achieve their financial goals and objectives.

Here are the measures for which, investment management is essentially required:

•The investment market comprises a large variety of complex financial products. Hence, for a potential and diverse investment portfolio, proper investment management is essential.
•The investment market is quite volatile in nature. Predictions are not easy in such type of instable situations. Hence, investments are managed through effective investment management tools and techniques.
•Due to diverse nature of investments, their regulatory requirements changes depending upon time, situation and investment products. Hence, investments are needed to be managed properly.

Process of Investment Management

1. Setting up of investment objectives:
Investment goals and objectives for all individuals, banks, financial institutions, pension, mutual funds and insurance companies are different. For example, the objective of a financial institution or a bank may be to generate higher interest from the investors, whereas an individual investor may object to increase his return on investment. Hence, desires objectives are to be analyzed and set to proceed with it accordingly.

2. Formulation of an investment plan:
A proper investment plan is formulated after setting the desired objectives for investment management. Formulation of these plans depends upon the constraints related to investors such as risk profile and financial capacity. Market conditions, economical state of the country, government regulations and other environmental factors also matter.

3. Establishment of the portfolio strategy:
An ideal combination of all asset classes is identified depending upon the objectives set and constraints emerged. These classes of assets include equities, foreign securities, fixed income securities, real estate, debt, or currencies.

4. Asset Selection:
Asset Selection as a part of Investment Management Process involves selecting a suitable option out of different asset classes available.

5. Review and evaluate performance:
Investment Management is a continuous process and so, its continuous pace should never be hindered. Constant evaluation and improvement of the portfolio performance is not at all an easy stuff. Hence, it should be done efficiently and flawlessly.

Investment Managers

Investment Management is highly essential for every individual, business concerns and financial institutions and they also do it to some extent including the stuffs such as making budgets, implementing savings, investing money and spending according to their requirements. However, an investment manager as a professional expert always remains available to the investors in the absolute money placement in diverse financial instruments for accomplishing predetermined goals and objectives.

Investment Managers practice Advisory Investment Management by offering suggestions to their clients with regards to investing money, buying and selling securities, dropping investment etc. On the other hand, when an investment manager is free to take any action related to portfolio and investment management without the approval of the client, it is known as Discretionary Investment Management.