Investment management firms invest their clients’ money. They select the right selection of investments – from fast-growing, risky stocks to safe but slow-growing bonds. The aim is to attain the client’s needs at a level of risk they are comfortable with. Investment management firms take on all the effort of creating an investment portfolio for their customers and open up new investment opportunities that would not otherwise be available.
Investment management firms work for all diverse client types. Some focus on wealthy individual investors. Others work with charities, companies, major corporations, or trusts.
The vital tasks of an investment management firm are:
• Monitor potential investments
Investments range from cash deposits and government bonds to shares in new companies with changeable futures. An investment management company needs to be aware of the possibilities and calculate the investment risks and returns of each. That’s the job of an investment analyst.
• Evaluate clients’ financial objectives and attitude to risk
Investment management firms need vital information such as how much the client has to invest, how much return they want when they will need to access their money, and how much they are eager to risk losing.
• Create investment strategies
Each client needs a portfolio of investments that match their objectives. A diverse portfolio, with investments spread across several different assets, decreases risk. That is the basic outline of an investment firm’s business. There are a vast number of ways to go about it. Firms may manage investment funds for multiple investors. They may invest in private equity. And there are other tasks for the firm, such as marketing, business development and IT, pricing, and accounting.
How do investment management firms make money?
The more profit they make for their clients, the more money investment management firms make. They charge their clients a management fee and take a percentage of the profits from the investments. Roles at an investment management firm comprise:
• investment managers
• analysts
• traders
• risk managers
• sales
If you are searching for a career that uses your brain – then investment management has that in bucket loads. You will need to put your analytical mind into action daily and what is more, you will also be expected to apply the skills you are gaining in your degree into action.
Intellectually thorough with exceptional training and starting salaries, investment management is a career route for many bright graduates.
If you are searching for a more flexible career, you can strike out on your own. After gaining a few years of experience and some contacts in the industry, you can become a wealth manager and an investment adviser.
Joseph Scott Audia is a Registered Representative currently working for the investment firm VCS VENTURE SECURITIES, LLC. He has more than two decades of experience as a Stock Broker. He has managed and retained dozens of his clients’ accounts for more than a decade. His honesty, clear-cut nature, and deep knowledge of the stock market and investment strategies are exemplified by the dozens of clients that have trusted him over the years with their investments and continue to do so.