The document provides an overview of investment management, including defining it as handling financial assets to achieve investment objectives. It discusses the basics of investment management for both individual and institutional investors. The investment management process involves establishing goals and risk tolerance, creating an appropriate portfolio, and ongoing monitoring. Key steps include asset allocation, portfolio design and review, and regular performance reporting.

1. INTRODUCTION TO INVESTMENT
MANAGEMENT
By
Ramya B
Assistant Professor
SRCAS

2. Meaning And Definition
• Investment management refers to the handling of financial assets and other
investments—not only buying and selling them. Management includes
devising a short- or long-term strategy for acquiring and disposing of portfolio
holdings. It can also include banking, budgeting, and tax services and duties,
as well.
• The term most often refers to managing the holdings within an investment
portfolio, and the trading of them to achieve a specific investment objective.
Investment management is also known as money management, portfolio
management, or wealth management.

3. The Basics of Investment Management
• Professional investment management aims to meet particular investment goals for the benefit of clients whose money they have the
responsibility of overseeing. These clients may be individual investors or institutional investors such as pension funds, retirement
plans, governments, educational institutions, and insurance companies.
• Investment management services include asset allocation, financial statement analysis, stock selection, monitoring of existing
investments, and portfolio strategy and implementation. Investment management may also include financial planning and advising
services, not only overseeing a client's portfolio but coordinating it with other assets and life goals.
• Professional managers deal with a variety of different securities and financial assets, including bonds, equities, commodities, and real
estate. The manager may also manage real assets such as precious metals, commodities, and artwork. Managers can help align
investment to match retirement and estate planning as well as asset distribution.In corporate finance, investment
management includes ensuring a company's tangible and intangible assets are maintained, accounted for, and well-utilized.

4. INVESTMENT MANAGEMENT PROCESS
• Step 1 - Establishing Investment Goals and Objectives
• Step 2 - Determining Risk Tolerance and Appropriate
Asset Allocation
• Step 3 - Creating the Investment Portfolio
• Step 4 - Monitoring and Reporting

5. Step 1 - Establishing Investment Goals and Objectives
• Investment Objectives: During our initial discussion we will
spend time discussing your short and long-term financial goals
and objectives. Understanding the role that your investments
play in your current and future cash flow, and where you are in
the 'accumulation-income generation-preservation-distribution'
cycle is essential to matching your investment goals to your
investment portfolio.
• Risk Profile: Using a model risk analysis profile questionnaire
we will have a discussion regarding risk-reward, time horizon
for investments and return expectations.

6. • Asset Allocation. The results of the risk analysis model
will provide information that I will use to develop a suitable
investment portfolio. A portfolio comprised of investment
asset categories that will provide you with an investment
portfolio designed to help you achieve your investment
goals and objectives.

7. Step 3 - Creating the Investment Portfolio
• Portfolio Design: Whether your portfolio is being designed for long term capital appreciation or the
generation of income, selecting the investments to build your portfolio is an important step in developing a
suitable investment strategy. There are a number of alternatives that will be discussed and explored as a part
of this process, and I will help you to determine which is suitable for your needs. Mutual Funds, Managed
Accounts, Wrap Accounts, Individual Securities, Bank Products, Annuities, Insurance Products may all have
a place in your portfolio. It is at this step in the process that we focus on which is suitable for your specific
needs.
• Portfolio Review and Reporting: Performance of the investment portfolio relative to your stated objectives
and the investment marketplace and the broad economy helps you to keep your investment portfolio and
decisions in perspective. We establish a timeframe to meet and discuss whether you are on track and making
strides to achieve your investment objectives.

8. Step 4 - Monitoring and Reporting
• Portfolio Review and Reporting: Performance of the
investment portfolio relative to your stated objectives and the
investment marketplace and the broad economy helps you to
keep your investment portfolio and decisions in perspective. We
establish a timeframe to meet and discuss whether you are on
track and making strides to achieve your investment objectives.