Investment management is the process of designing, implementing and managing a portfolio of investments to meet the goals and objectives of investors. Investment management can be done by an individual or a professional financial advisor or a team of financial advisors working with a financial institution such as a bank, an insurance company or an investment management company.

Investment management focuses on maximizing clients’ return while minimizing risk. It may involve assessing the client’s financial goals, predicting possible investment opportunities and risks, selecting and monitoring investments, and regularly monitoring and rebalancing the portfolio. Investment management is often done with the aim of achieving a specific financial goal such as accumulating a certain amount of wealth, providing retirement income or wealth preservation during economic downturns.

Investment management is a complex area of finance and requires expertise in both markets and financial products. Investment managers must be knowledgeable about economic trends, market performance, the risks associated with various investments, specific investment products and tax laws. Investment management firms must register with the Securities and Exchange Commission (SEC) if they manage over $25 million in assets. Registered professionals must meet certain standards of care and fiduciary responsibility.

In addition to managing investment portfolios, investment management professionals may provide investment counseling, financial planning services and other types of advice. Investment management firms also oversee the operations of their firm, including accounting, auditing, compliance, risk management and marketing.

Investment management can be an important part of any investor’s financial strategy. Professional investment managers have a wealth of experience and expertise in managing portfolios, selecting investments and diversifying investments to meet the goals of their clients. However, it is important to ensure that the manager is a fiduciary and that the fees charged for service are fair and reasonable before engaging a professional investment manager.