- "Investment management is the professional asset management of various securities, including shareholdings, bonds, and other assets, such as real estate, to meet specified investment goals for the benefit of investors."
The process of creating and managing savings and investment portfolios to grow wealth.
Basic Terminology: Start from basic terminologies like present value, future value, compound interest, inflation, and interest rates. Understanding these concepts will provide a solid foundation for your learning.
Investment Options: Learn about the different types of investment options available to investors, including stocks, bonds, mutual funds, exchange-traded funds (ETFs), and other alternative investments.
Risk and Return: Risk and Return are two crucial components that every investor must learn about. You need to understand the relationship between risk and return, how they affect investment decisions, and how to analyze expected returns and risks associated with an investment.
Portfolio Diversification: Portfolio diversification is all about spreading your investments across different asset classes, industries, and geographies. Learn how to build a diversified portfolio that aligns with your financial goals and risk tolerance.
Retirement Planning: Retirement planning is essential for everyone who wants to secure a comfortable future. Learn how to estimate your retirement needs, determine the right savings and contributions, and how to use various retirement savings products to achieve your goals.
Taxes and Investment Returns: Learn how taxes may impact your returns from different types of investments, such as capital gains, dividends, and interest income.
Investment Strategies: Investment strategies are various approaches that investors use to build and manage their portfolios. Learn about different investment strategies, such as value investing, growth investing, and contrarian investing, and how to use them to achieve different financial goals.
Financial Markets: Financial markets are where people buy and sell stocks, bonds, and other securities. Learn about financial market concepts, such as supply and demand, market efficiency, and price movements.
Investment Analysis: Investment analysis involves a detailed examination of an investment opportunity, including its financial statements, industry trends, and competitive landscape.
Ethics in Investing: Ethics in investing is all about ensuring that your investments align with your values and personal beliefs. Learn about ethical investing concepts, such as socially responsible investing (SRI) and environmental, social, and governance (ESG) investing, and how to apply them in your investment decisions.
Personal Finance: Personal finance covers various topics, such as budgeting, debt management, and credit scores. It is essential to integrate personal finance principles into your investment planning, so you can build a solid financial foundation.
Behavioral Finance: Behavioral finance is a field that combines psychology, economics, and finance to understand how emotions and cognitive biases affect investment decisions. Learn about behavioral finance concepts, such as heuristics and biases, overconfidence, and regret aversion.
Investment Evaluation: Evaluate investment ideas and make decisions that align with your personal goals and financial objectives. It combines various analytical and financial modeling techniques to help investors identify the best investments to achieve their objectives.
Investment Implementation: Selecting a strategy and building a diversified portfolio is a challenging process. Investment implementations examine different factors that influence the successful execution of an investment strategy, including timing, diversification, and rebalancing.
Investment Monitoring and Review: Monitor and review investment portfolios by assessing their performance regularly, taking appropriate risk management measures, and updating the strategy as needed. Investment monitoring and review help to ensure that the portfolio aligns with your investment objectives and risk tolerance.
Savings account: A type of deposit account offered by a bank or credit union that typically pays interest on the balance.
Certificate of deposit (CD): A type of savings account that requires a fixed deposit and a specified term (usually up to five years). In exchange for depositing money for a set amount of time, the bank pays a higher interest rate than a savings account.
Money market account: A type of savings account that usually pays higher interest rates than a regular savings account but requires a higher minimum balance.
Individual Retirement Account (IRA): A tax-advantaged account that helps individuals save for retirement. There are two main types of IRAs: Traditional IRA and Roth IRA.
401(k) plan: A retirement savings plan sponsored by an employer that allows employees to contribute pretax dollars.
Stocks: A type of investment that represents ownership in a company. They are bought and sold on stock exchanges, and their value can fluctuate based on market conditions.
Bonds: A type of investment where an individual loans money to a company or government in exchange for interest payments over the life of the bond.
Mutual funds: A type of investment that pools money from investors to buy a portfolio of stocks, bonds or other securities.
Exchange-traded funds (ETFs): A type of investment fund that is traded on an exchange like a stock. ETFs can contain a wide range of securities, including stocks, bonds, or commodities.
Real estate: Investment in property, such as rental properties, land, or commercial real estate.
Commodities: Raw materials or primary agricultural or extractive products that can be bought and sold, such as oil, gold, or corn.
Art and collectibles: Objects of value that can be bought and sold, such as artwork, rare coins, or stamps.
Peer-to-peer lending: A type of investment where individuals lend money to other individuals or businesses through online platforms.
Hedge funds: Investment funds that are only available to accredited investors and use advanced investment strategies to generate high returns.
Options: Investment contracts that give the buyer the right, but not the obligation, to buy or sell a underlying asset at a specified price and time.
Futures: Financial contracts that obligate buyers and sellers to purchase or sell an asset at a fixed price on a future date.
- "Investors may be institutions, such as insurance companies, pension funds, corporations, charities, educational establishments, or private investors, either directly via investment contracts/mandates or via collective investment schemes like mutual funds, exchange-traded funds, or REITs."
- "The term investment management is often used to refer to the management of investment funds, most often specializing in private and public equity, real assets, alternative assets, and/or bonds. The more generic term asset management may refer to management of assets not necessarily primarily held for investment purposes."
- "Most investment management clients can be classified as either institutional or retail/advisory, depending on if the client is an institution or private individual/family trust."
- "Investment managers who specialize in advisory or discretionary management on behalf of (normally wealthy) private investors may often refer to their services as money management or portfolio management within the context of "private banking"."
- "Wealth management by financial advisors takes a more holistic view of a client, with allocations to particular asset management strategies."
- "The term fund manager, or investment adviser in the United States, refers to both a firm that provides investment management services and to the individual who directs fund management decisions."
- "According to a Boston Consulting Group study, the assets managed professionally for fees reached a historic high of US$62.4 trillion in 2012"
- "the assets managed professionally for fees reached a historic high of US$62.4 trillion in 2012, after remaining flat since 2007"
- "and were then expected to reach US$70.2 trillion a year later."
- "The five largest asset managers are holding 22.7 percent of the externally held assets."
- "the market concentration, measured via the Herfindahl-Hirschmann Index, could be estimated at 173.4 in 2018"
- "showing that the industry is not very concentrated."