Investment management is a practice where professionals manage a client’s portfolio with the goal of achieving specific investment objectives. Clients can be individuals or institutions, such as retirement plans and pension funds. Other clients include educational institutions and insurance companies. The goals of investment management vary depending on the type of organization and type of investment.
Investment managers must register with the state securities agency in their state, pay an application fee, and undergo background checks. Some investment managers have earned the Chartered Financial Analyst (CFA) designation, which is considered the gold standard for portfolio managers. Holding this designation will help you qualify for senior positions with asset management firms. Many companies prefer employees with the designation to those without.
There are three main styles of investment management. These styles include value, growth, and market neutral. Each style is characterized by its own risks and unique features. Value-styles tend to outperform the indices, while growth styles work well when companies are scarce. But regardless of their style, there is no guarantee that you’ll get the same results as an index-based fund. A good investment manager will take into account the risk and reward profile of each client.
Investment management services include a variety of financial services, such as portfolio implementation and asset allocation. They can also help you with your estate planning and retirement planning. Investment managers handle many types of financial assets, including stocks and bonds, as well as real estate and pensions. Professional managers can even help you choose investments that will help you reach your goals.