All That You Wanted To Know About Investment Management
There’s no disputing the fact that money can help you achieve your goals. It makes life comfortable and easier. But to be self-sufficient and earn enough money, you have to work smart and not work hard, i.e., you must make your money work for you and not the other way round.
Investment management is basically professional assistance to help individuals manage their financial health. For a long time, banks and brokerage firms have been traditionally offering wealth management services.
Today, the process is more sophisticated and automated, thanks to investment management platforms helping individuals create, monitor, and manage investment portfolios seamlessly.
What Is Investment Management?
The process involves devising short and long-term strategies for acquiring and selling portfolios. Besides buying and selling financial assets, investment management also involves banking, budgeting, and tax services.
Investment managers allocate assets, analyze financial statements, select stocks, monitor existing investments, and implement portfolio strategies. They deal with a range of financial assets, including bonds, commodities, real estate, precious metals, and even artwork.
Why Is Investment Management Important?
- Higher Returns:
Stock investments offer returns in multiple ways – by way of dividends and through capital gains. Investing in bonds offers returns by way of regular payouts and coupons. And if you’re investing in real estate, you can reap benefits by way of rental income and capital gains.
- Early Retirement:
People often misunderstand investment for saving, but the two are very different. While savings refer to storing a part of your income, investment also involves putting away money for the future but taking on more risk in exchange for higher returns.
While saving prepares you for a rainy day, it also has its downsides. Inflation causes the value of money to decrease every year. Also, you will have to set aside more money for savings when compared to investment.
After retirement, when people cannot sustain their lifestyle and savings seem inadequate, investments can come to the rescue.
A lot of young people are now planning to retire early – starting an investment plan early in their professional career helps meet their goals.
- Investment Is The Best Way To Beat Inflation:
Like we said earlier, the returns on savings are minimal and do not take into account inflation. Leaving the money in your savings accounts decreases your purchasing power because inflation eats into its value.
What Is Investment Management Software?
An automated investment management platform not only helps track and manage portfolios but also offers solutions to investment tracking, investment accounting, reporting, client communication, investment analytical tools, and more.
At Investera, we deliver reliable investment management solutions to help you make critical decisions. We offer two applications; Investera Pro and Investera+.
