Investment management is the professional type of management of the different kinds of securities, assets. There are various styles of fund management that the institution can implement such as indexed, growth, value, capitalization and many more. Even the provision of the investment management services also includes the various elements of the financial analysis, stock selection, asset collection and plan implementation.
The industries of the investment management are the manager who divest and invest the client investments. Investment managers and portfolio structures includes the long term returns, diversification and asset allocation.
Long term returns
The indication of the long term returns is holding the type of period returns and the different kind of assets. The classic example, in the most countries, is that the bonds have generated a higher return than the cash as well as the equities have generated in a higher returns than the bonds.
The portfolio of diversification was originated by the Markowitz and the impressive diversification requires the management of the relationship between the liability returns or the asset returns.
The various classes of the assets allocation are real estate, stocks, bonds and commodities. Asset classes show in the various kinds of market dynamics as well as the various types of interaction effects also.
Investment management is a very large world-wide industry in its own responsibilities for the caretaking of trillions of dollars pounds, euro and dollars.
Investment management faces the several type of business such as dealing, marketing, auditing and research. Generally, those investment firms are most successful in the world that have been separated from the psychologically and physically from the insurance companies and banks and that’s why they give the best performance.