I have discussed investment and its types in my earlier post, today I am discussing investment management.
Investment management is the specialized management of securities and assets in order to meet specified investment goals for the benefit of investors. One has to follow a process while managing investments.
First of all he should set the objectives for which investment is being done like return, liquidity, growth, hedge against inflation, etc.
Then Asset mix is selected i.e. in which assets money should be invested. After that portfolio strategy is formulated depending on how much risk an investor is ready to take and how much return he expects.
Selecting of securities is done only after formulation of portfolio strategy. For selecting securities fundamental analysis and technical analysis is done.
Then comes portfolio execution and then portfolio revision.
Portfolio revision is done to see whether portfolio is working as per expectations or not and if it is not working as per expectations then it is revised and whole procedure is followed again.
In this way investments are managed. Now a days career as investment manager is very popular among youth and its interesting also.
Your comments and suggestions are welcome.