The procedure of diverting finance of a company towards profit generating business is known as investment. Management of investment is related to professional management of the various security and assists own by the investor for maximum financial gain. An investment manager is a person whose duty is to manage finance of the investor. Larry Polhill who has operated as officer, director of the board and chairperson of a series or business houses says that an investment manager should concentrate on benefits and profits that is feasible by investment. He also assigned to manage investment related matters and operate as per guidelines framed by the legislation of the government.
An investment manager is commonly belongs to a large financial sector like the bank, big insurance company, private deposit scheme providers etc. He is authorized to manage the investment related businesses of the institutes. The investment manager may sometimes have found to be involved in participation in direct investment services on behalf of a third party also. Investment manager provides investment counseling services also as they need to manage money-related functions.
Role played by investment managers- Larry Polhill Gives A Details Explanation
Security attainable in future by investment is a prime interest of every person. Accordingly, they plan their investment management. Investor saves money, prepare the budget, spend his money in buying high profit-oriented assets or securities. But everyone cannot take correct decision and they should not do that. It needs professional experience to take a correct investment decision. The investment manager is the right person who is a professional man and an investment specialist. He is qualified and trained to take the correct decision. He can guide you in spending your money in best profit yielding asset to gain maximum profit. So, appointing an experienced and qualified investment manager is a must if you desire to invest in the financial market.
A professional investment manager will advise you by:
- formulating the best strategy
- in analyzing and assisting in asset and stock selection
- by continuous monitoring the investment
- in gaining a maximum return on investment
There are various categories of investment managers according to their expertise and professionalism as indicated below:
- Portfolio management and asset investment manager
- Money management and money investment
- Wealth management and wealth investment manager
- Advisory investment manager
The functions of investment manager are described below:
Fixes investment objectives
The objective of investment varies according to the individual person or institutes and his motive of investment. This comprises big players like the nationalized bank or private bank, pension fund, life insurance companies etc. Investment is also allowed for the private investors who are motivated to gain high returns. As per Larry Polhill, a well-distinguished financer, investment consultant says that an investment manager is to help the investors to fix investment objectives based on the decision taken by the investor.
Formulates investment planning:
By observing the objective of investment of his clients, investment manager advises and involved to prepare the investment plan on behalf of his client. The plan devised by him is based on the profile of risk involved, financial capacity of his client, issues related to the market and economic conditions at par government regulations and policy.
Establishes portfolio strategy
Investment manager study and analyze the objectives of the investment and the constraints involved in it and fix the class of assets accordingly. This includes financial securities, debts, shares, currency and in some cases real estate. He is responsible for asset selection for the purpose of investment from the asset classes. Since investment management is a continual process investment manager, evaluate and upgrade the investment portfolio regularly.