Are you looking to improve the profitability and overall value of your investments? This guide will aid you in personal financial planning and make you learn everything you need to know about handling your financial assets.
What is Investment Management?
The first thing to understand about investment management is that it is not a product but a process. The process empowers the investors and allows them to meet their investment management policy and strategy objectives by deploying capital in an ideal combination of financial instruments and other asset classes.
The investment management process refers to managing financial assets, including the buying and selling of these. Here, the term ‘management’ represents devising a strategy, be it long-term or short-term, for acquiring and disposing of portfolio holdings.
Not only financial assets, but the process includes banking, budgeting, and tax services.
Objectives of Investment Management
The objectives of investment management rely extensively on understanding the financial requirements, policies, guidelines, and government restrictions. It is very important to gauge these factors as the asset allocation strategies change dynamically alongside the market conditions.
Investment managers carry out the investment management process to accomplish defined investment goals. The investment managers are held responsible for managing endowments for pension funds, retirement funds, or other types of investments for corporations on employees’ behalf.
Importance of Investment Management
The sooner you get started with investment management services, the better it is. Opting for the investment management process helps you build wealth and increase your net worth.
Cash loses value over a period because of inflation. So, making planned investments is pivotal if you want to narrow the wealth gap and grow your money to meet your long-term needs.
Moreover, the investment management team makes all financial decisions by themselves, without burdening off your shoulders, while offering you lucrative opportunities to amplify your returns on investment. These are the professionals providing specialised services in letting you decide to invest in certain products that are beneficial for the long term, using personal experience and tech-powered analysis tools.
Thus, opting for investment management firms and to avail their services benefit investors immensely as it allows them to take the right decision and steer clear of financial risks.
How does Investment Management Work?
The investment management firm you choose will require you to open an investment account. However, if you already have an existing account running in other firms, such as brokerage accounts, IRAs, or retirement plan assets, they will allow you to switch your funds from an old to a new account.
The investment decisions of a manager are based on a variety of factors, starting from the saving goals to the time frame. Your answer will allow the investment manager to assess your ability to endure the market’s price swings and the high volatility of the stock market.
Other critical factors determining a manager’s investment strategy include fees, tax efficiency, market conditions, etc.
Top Asset Management Companies in India
There are many companies in India that offer their impeccable services of investment management which can prove to be highly beneficial for you, especially if you’re not very confident of your financial-market knowledge but want to gain high returns. These are:
- SBI Mutual Fund
- HDFC Mutual Fund
- Axis Mutual Fund
- Nippon India Mutual Fund
- ICICI Pru Mutual Fund
- Kotak Mutual Fund
- Tata Mutual Fund
- Aditya Birla Sun Life Mutual Fund
- L&T Mutual Fund
The portfolio of an investor needs to be monitored by professional investment managers. It implies every investor must consider the investment management process for higher security and reap the best returns from their financial assets. However, there are some downsides related to investment management.