What does an Investment Management firm do?
Finding the best investments on the market is a full-time job – it’s no surprise people pay investment management firms to do it for them. Here’s a quick look at how those firms operate and the careers available.

What is investment management?

Put simply, investment management firms invest their clients’ money. They choose the right selection of investments - from fast-growing, risky stocks to safe but slow-growing bonds. The aim is to achieve the return the client needs at a level of risk they’re comfortable with.

Investment management firms take on all the effort of creating an investment portfolio for their clients and open up new investment opportunities that wouldn’t otherwise be available.

Investment management firms work for all different types of client. Some focus on wealthy individual investors. Others work with companies, charities, trusts or major corporations.
The three key tasks of investment management
1. Assess clients’ financial goals and attitude to risk

Investment management firms need key information such as how much the client has to invest, how much return they want, when they’ll need to access their money, and how much they’re willing to risk losing.
2. Monitor potential investments

Investments range from cash deposits and government bonds to shares in new companies with unpredictable 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.
3. Create investment strategies

Each client needs a portfolio of investments that match their goals. A diverse portfolio, with investments spread across many different assets, reduces risk – it’s a case of not putting all your eggs in one basket.

That’s the basic outline of an investment firm’s business. There are a huge number of ways to go about it. Firms might manage investment funds for multiple investors. They might invest in private equity. And there are other tasks for the firm, such as business development and marketing, IT, pricing and accounting.

Roles in the investment management industry

Roles at an investment management firm include:

analysts
investment managers
risk managers
traders
sales


Get an investment firm today to help manage your finances and equally multiply it

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