Investment Management is the handling of financial status rather than buying and selling them. Investment is the process of using finance to generate profit in an organisation. Management means planning short term and long term strategy for acquiring a goal. It also includes budgeting, banking, and tax services and duties. The ultimate purpose of the investment management system is the generation of profit for the company. A highly qualified person is appointed to carry out the task properly. It is a vital sector in Australia. Investment Managers Australia performs the job with ease and does justice to their post.
What does investment management involve?
Investment management involves various tasks to perform. The following processes involved in investment management:
- Setting Investment Objectives – The objectives are decided based on the investor, purpose, and type of investment. This task is the best performance of a financial institution like banks, insurance companies, pension funds, etc. The investments are generally made by private investors to generate a high rate of return. An investment manager helps to set up the investment objectives for the organisation.
- Formulating an investment plan – After setting up the objective, the next most important task is to find a strategy to achieve the target in a planned time limit. While planning an approach, an investment manager looks after risk profile, market factors, the financial ability of the investor, economic condition, and government regulations.
- Establishment of the portfolio strategy – The next task is to gather the necessary assets needed to carry out the plan. Some of the assets are financial security, equities, debts, currency, and real estate. The proper selection of the assets is a crucial step and requires hardcore knowledge in this field. Regular monitoring and daily evaluation of the investment process is necessary to perform.
Role of an Investment Manager:
An investment manager is a high authority person in any organisation like a bank, a life insurance company, or a trust. The person looks after the objective, strategies a plan to follow the goals, and monitors the task regularly. It is a dignified job in Australia. Investment Managers Australia performs the job of managing vast companies. The role of a manager is necessary for the economy of a nation. The works they perform are –
- Study the investment requirement properly.
- Decide the best strategy for investment.
- Analyse state of finance of the investors.
- Analyse the stock market and the assets.
- Monitor investment of the company daily to avoid complication in future.
- Help to extract maximum benefit from the basics.
- Generate the highest profit outlet possible from the investment.
- They also provide advice on the areas of investment.
- Support investor decisions and make necessary changes in the plan accordingly.