Investment Management Services

Investment Management Services

Investment Management Services – What Are They?

Investment management is the process of managing money invested in tangible and intangible assets, and financial securities, with high profit potential in the capital market. Investment is a competitive industry. Today, an increasing number of financial firms and non-financial companies are offering different types of investment management services. Investment management services (or asset management services) take care of invested capital and ensure high capital gains for investors. Investors include organised bodies or institutions like insurance companies, corporations, pension funds, and also private investors who invest in mutual funds via collective investment schemes.

Enterprises offering investment management services include national and investment banks, licensed dealers or brokerages. The rise in investment management services is due to several factors like, the growth in assets, investment alternatives, introduction of new and advanced technologies, expansion of capital markets, etc.

Investment Management Services – Features

All investment management services target one thing: profit. The maximum profits are yielded by the investment company accounts and industrial retirement plans. Investment portfolios focusing on wealthy private investors generate lower revenues comparatively, but are fast increasing as capital gains operation.

Most investments involve risks, but with good risk management, they can generate high profits. Especially with traditional investment, management services for trading of financial securities, real estate, mutual funds, and other private investments, efficient risk management can provide lucrative investment opportunities.

The investment management services industry is active and constantly presenting challenges for service providers. Investment management services are required to come up with innovative investment methods for pay offs in context with the dynamic global financial market. This calls for the development of new investment strategies to appease investor demands.

Why Choose Investment Management Services?

Making an investment is the best way to secure the future and beat inflation. However, to profit from financial investment, investors will require professional investment management services to manage funds and advise on investment areas. Further reasons to hire competent investment management services include:

  • An investment professional’s wealth of experience and knowledge of the market and its changing trends
  • His / her diversified sources of information that most people cannot access
  • His / her qualifications and experience in interpreting investment data

In short, it is wiser to leave investment decisions to investment management services experts.

Investment Management Services – Identifying Good Services

Investment management services manage diverse financial investments like stocks, shares, bonds, commercial and residential real estate, etc. They are focused on achieving good returns for investors. These returns however, cannot be predicted, and in some cases the investment may not be profitable for the investor. Therefore, before selecting investment management services, investors must check the following points:

  • Is the investment service paying attention to their comfort level with regard to the level of risk they may be facing? Good investment management services will always try to identify an investor’s comfort level, especially if the investment is in a potentially risky venture.
  • Is the investment service making investments with regard to their choice of the level of risk they are willing to take? An investor’s acceptance of risk can either be low or high. Where an investment is made will depend on an investor’s rate of acceptance. If an investor is willing to take high risks, good investment management services will target high risk areas to gain high returns. If he / she is reluctant, investment service providers will invest in more stable, slower growth markets. 
  • Dedicated investment management services will maintain good relationships with investors. This allows the investors to keep account of their investments and clarify any concerns or make suggestions to the account representatives.

It should be remembered however, that, while most investment management services persevere to safeguard investments made by investors; no service provider can guarantee 100% profits.

Investment Management Services and Role of Investment Advisors

Investment management advisors, or investment advisors, provide investment management services to clients investing in the financial market. Investment advisors manage finance, offer investment counselling, and help investment planning and projections. There are 2 types of investment advisors:

  • Those offering direct investment advice to businesses or individuals
  • Those offering advice on asset management to corporate clients

Investment management advisors may work as a part of an investment firm or as individual entities. Investment advisors working for reputed investment firms are preferred over solo advisors because of their greater credibility. Investment agents working with reputed investment management services companies are also expected to hold suitable qualifications and relevant experience in the investment and other financial sectors.

Investment advisors function under government agencies and private investment associations who monitor their performance to ensure the quality of investment management services provided. They are required to maintain client confidentiality, and, as per rules, disclose all details of investment deals before the client. Certifications issued by employing agencies ensure the safety of client funds, as well as safeguard rights of advising professionals.