If you’re looking for experienced professionals to help you with your investments and financial planning, turning to an investment management firm is a great idea. Such firms are set up to manage client wealth and advise on investment decisions to ensure clients grow their estates and realize financial success. But what does an investment manager do? Learn more about investment management firms here, and what they could mean for you and your wealth.
Investment management firms are tasked with managing and investing client wealth. Of course, each client is different, and their financial situations are often nuanced. Investment managers take a look at the whole financial picture, planning for both the short term and long term. Their four main duties are as follows.
Investment managers speak with clients to gain a strong understanding of their financial background, goals, and view on investment risks. Some clients want to invest a large amount of wealth in various stocks, bonds, mutual funds, or exchange traded funds (ETF) to provide retirement income. Others want to save for a specific goal, such as funding a grandchild’s college education. Investment managers make decisions based on these factors, ensuring all investments are made with the client’s best interests in mind. They also note the client’s view on risk, which determines whether they can go after high-risk investments such as high-yield bonds.
The financial landscape is constantly changing, and it’s an investment manager’s job to stay on top of fluctuations to ensure the best return on investment for their clients. Investment analysts have the job of monitoring evolving market conditions to help inform their decisions with respect to client wealth.
A portfolio isn’t strong unless it’s built upon a robust investment strategy. Investment management firms formulate investment strategies with their clients, or even do so on their behalf, to try to generate high returns. This usually involves spreading the client’s wealth across multiple investments to build a diversified portfolio. These investments usually possess various levels of risk, and can entail investment in property or venture capital.
As with most financial strategies, investing involves many complicated tax laws. Financial advisors can help clients make sense of those laws and implement tax-reduction strategies to minimize impact. These strategies may include:
When looking for an investment management firm, it’s important to be acquainted with the various types out there. Some popular options include mutual funds companies, financial advisory firms, investment banks, robo-advisors, and private equity firms.
When you work with an investment management firm, you’ll typically deal with people in four main roles: a financial advisor, a financial analyst, a mutual fund portfolio manager, and a trader. So how do those roles function?
Investment management firms generate profit by charging a percentage based on the financial assets they manage. They can also make money by earning commissions on products they sell.
There are many options out there when it comes to investment management firms. In a complex financial world, it’s important that you choose the investment management firm that cares about your financial goals and wants to maximize your bottom line. Dechtman Wealth Management is an investment management firm that has helped Denver-area clients reach their financial goals for more than 37 years. Talk with a financial advisor today to learn more.