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Investment Management Courses
Investment has a close relation to the fields of business management, finance as well as economics. Investing is redirecting the monetary resources as well as assets in an active way so that benefits are gained in future in the form of profits instead of consumption of the money as and when it is generated. Investment management is asset management in a professional way of different kinds of securities (bonds, shares as well as other types of securities) and also of other assets such as real estate so as to be able to meet the goals of investment that have been specified in order to provide benefits to the investors. The investors can consist of the institutions like the educational establishments, charities, corporations, pension funds and insurance companies or the private investors which can be directly through contracts of investment or in a more common way through schemes of collective investment such as exchange-traded funds or mutual funds. In case of private investors as well as investing institutions, investment management is called “fund management”. The services of investment management are also known as “portfolio management and wealth management services”.
Investment Management Industry
The industry of investment management is booming and has the responsibility of handling as well as generating huge amounts of money and for large scale monetary transactions all over the world. The services of investment management comprise stock selection and asset elements, financially analysis, constant investment monitoring and investment plan implementation.
Areas of Investment Management
Investment management consists of the areas of finance as well as business management.
Investment Management in Business Management
Investments can be made either in the form of assets that are tangible or assets that are intangible. “Investment decision making” or “Capital budgeting” are involved in investment management in terms of assets investment management.
Investment Management in Finance
The investments that are financial in nature are made through the purchase of financial securities as well as assets from the market. Generally, purchases are made by the investors of properties that have a high value such as residential and commercial real estate, gold, other items that are precious, etc. The handling of various bonds and stocks, security investments, etc. with the expectation of getting profit yields in future are known as financial investment management.
Elements of Investment Management Courses
- Return – Financial instruments are bought or sold by the investors so that returns can be earned on them. The investors get the rewards in the form of “return on investment”. The return consists of current income along with the capital gains or capital losses that might be a result of either an increase or a decrease in the price of the security.
- Risk – The variability of returns that may exist in case of an investment may result in a probability of loss which is known as risk. This can lead to an interest loss or loss in the dividend or even in the principal amount pertaining to the investment. However, returns and risks cannot be separated. Return can be measured as it is a statistical term that is precise but even though risk cannot be considered a “precise statistical term”, it can be quantified. Both risks, as well as returns, are import while considering the process of investment.
- Time – A significant factor in case of investments in time. Many distinct courses of action are offered by it. The investor’s attitude determines the time factor as he follows the policy of “buy or hold”. With the passage of time, it is expected that there might be a change in conditions causing the investors to evaluate the risks and returns expected from every investment that is made by them.
The period of investment or time is one of the main considerations while choosing an investment avenue. The period of time may be –
- Short Term (up to one year) – for meeting the objectives, the avenues of investment that involve either minimum or no risk at all are appropriate.
- Medium Term (1 to 3 years) – avenues of investment which give returns that are better and which carry risks that are slightly more can be taken into consideration.
- Long Term (3 years and above) – since there is the accuracy of the time horizon, the investors can have a look at those investments which provide the returns that are the best and are taken to be riskier.
- Liquidity – Another important factor to be taken into consideration when making investments is liquidity. This is with reference to the investment’s ability to be converted into cash whenever the requirement arises. The money may be wanted back by an investor at any given point in time. Thus, liquidity should be provided to the investor by the investment.
- Tax Saving – The benefits related to tax exemption as a result of investments need to be given to the investors. Certain investments are present that give exemption of tax to the investors. The investments that save tax lead to an increase in the return on investment. Thus, the investors should think in terms of income tax savings and make investments of money in such a way that the returns on investment are maximised.
Investment Management Courses Course Description
This is the section that gives the introduction to what the course is all about and helps in understanding the basics of investment management.
The next section is related to investments and it is further divided into – an understanding of speculation, investments as well as savings and explanation of investments
Understanding of the Risks
This section comprises the following parts –
- The continuation of the risk profile of the investor
- The reasons why investments are made by people
- Compounding of interest
- Rule of 72
- Life Cycle along with Inflation
This section consists of the financial planning along with the financial planner
Types of Investments
The various investment types consist of the following –
- A tradeoff between risks and returns
- Conservative moderate
- Direct Investment and aggressive investor
- Indirect Investment
- Stock market investment
- Return on investment
- Primary investment in the stock market category
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