INVESTMENT MANAGEMENT
What is investment management?
Put simply, investment management firms invest their clients’ money. They choose the proper selection of investments – from fast-growing, risky stocks to safe but slow-growing bonds. The aim is to realize the return the client needs at a level of risk they’re comfortable with.
Investment management firms combat all the trouble of making 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 clients. Some specialize in 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 like 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 must consider the odds and calculate the investment risks and returns of each. That’s the work 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 of your eggs in one basket.
That’s the basic outline of an investment firm’s business. There is an enormous number of ways to go about it. Firms might manage the investment for multiple investors. They could invest in private equity. And there are other tasks for the firm, like business development and marketing, IT, pricing, and accounting.
How do investment management firms make money?
The more profit they create 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 include:
1. Analysts
2. Investment managers
3. Risk managers
4. Traders
5. Sales
Types of investment management firms:
Large investment management firms, like BlackRock, manage assets running to trillions of dollars.
Boutique firms are smaller and sell themselves on their quality people and personal touch.
Specialists offer investment expertise in a particular area, like private equity or investing in art. They may be employed by other investment management firms.
Investment banks like Goldman Sachs tend to have large, well-developed asset management divisions.
Why it might be for you:
If you're looking for a career that uses your brain – then investment management has that in bucket loads. You'll need to put your analytical mind into action on a day-to-day basis and what’s more, you’ll even be expected to use the skills you’re gaining in your degree into action.
Intellectually rigorous with exceptional training and generous starting salaries, investment management is a sought-after career route by many a bright graduate.
Getting into investment management:
As a graduate, you’ll start your career in investment management as an investment analyst. Over two to four years, you’ll gain more responsibility for devising, recommending, and selecting investment strategies, until you reach a stage where you have full responsibility for managing an investment portfolio or investment fund.
Because it’s a popular industry, you should look to gain as much experience as possible while at university. Aim to get an internship in the summer before your final year.
Put simply, investment management firms invest their clients’ money. They choose the proper selection of investments – from fast-growing, risky stocks to safe but slow-growing bonds. The aim is to realize the return the client needs at a level of risk they’re comfortable with.
Investment management firms combat all the trouble of making 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 clients. Some specialize in 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 like 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 must consider the odds and calculate the investment risks and returns of each. That’s the work 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 of your eggs in one basket.
That’s the basic outline of an investment firm’s business. There is an enormous number of ways to go about it. Firms might manage the investment for multiple investors. They could invest in private equity. And there are other tasks for the firm, like business development and marketing, IT, pricing, and accounting.
How do investment management firms make money?
The more profit they create 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 include:
1. Analysts
2. Investment managers
3. Risk managers
4. Traders
5. Sales
Types of investment management firms:
Large investment management firms, like BlackRock, manage assets running to trillions of dollars.
Boutique firms are smaller and sell themselves on their quality people and personal touch.
Specialists offer investment expertise in a particular area, like private equity or investing in art. They may be employed by other investment management firms.
Investment banks like Goldman Sachs tend to have large, well-developed asset management divisions.
Why it might be for you:
If you're looking for a career that uses your brain – then investment management has that in bucket loads. You'll need to put your analytical mind into action on a day-to-day basis and what’s more, you’ll even be expected to use the skills you’re gaining in your degree into action.
Intellectually rigorous with exceptional training and generous starting salaries, investment management is a sought-after career route by many a bright graduate.
Getting into investment management:
As a graduate, you’ll start your career in investment management as an investment analyst. Over two to four years, you’ll gain more responsibility for devising, recommending, and selecting investment strategies, until you reach a stage where you have full responsibility for managing an investment portfolio or investment fund.
Because it’s a popular industry, you should look to gain as much experience as possible while at university. Aim to get an internship in the summer before your final year.
