Investment management, two words that are in the mind of anyone that has invested in a company or organization. What exactly do these two words mean? Strictly by definition, investment management is the professional management of assets and securities in order to reach an investment goal that is beneficial to the investor. Assets and securities can translate to numerous things from stock shares to real estate. The investor can be anyone, from a large business firm to an individual.
Directly related to investment management come the terms asset management and fund management. Asset management is a term that is commonly used to refer to the management of collective investments. Fund management is the more generic term. Fund management can be used when speaking about any and all forms of institutional investments, and can be used as well when on the topic of management by private investors. The professional investment managers who specialize and deal in advisory often have their services referred to as portfolio management or wealth management. These specialists often time represent the wealthy private investors.
In order to break down what takes place during the management of these investments, one would need to understand each related process. Among these processes are financial statement analysis, asset and stock selection, plan implementation and ongoing monitoring of the investment. All of these things can be handled by investment management services and advisers. This industry is both a large and important global industry which by itself is responsible for funds ranging in the trillions. As this is a global industry with investors from around the world, the trillions in funds are from every possible currency. Many of the largest companies in the world also take part in the industry by employing investment managers and staff, all of which results in billions in additional revenue.
How can all of this effect businesses? Generally speaking, large corporations often times control large amounts of shareholdings. Usually these businesses are more or less fiduciary agents instead of merely principals or direct owners of shares. By owning a large majority of shares, investors can theoretically control or alter a company they have shares in. This is possible thanks to the voting rights that the shares carry. How all of this could effect the management of a company is because of the simple fact that a share owner can pressure or possibly out-vote other shareholders at meetings.
Regardless of whether it is a large corporation or individual making an investment, having the proper tools and knowledge to manage that investment is critical when thinking of success. Corporations and individuals alike rely on specialists to oversee and manage their investments. Merely trying to jump in to the industry by purchasing shares and investing in a business most likely isn’t a sound choice. Seeking the aid of a professional with knowledge of the industry beforehand can help an investor from losing money in their investment, and overtime help to achieve a profitable outcome. When it comes to investment management, it is most likely the safest choice to seek aid from an expert, rather than attempting to do it yourself.