In plain words, investment management refers to the handling of financial assets, suggesting investment strategy and buying and selling of investments. One can also refer to it as money management, portfolio management, asset management or wealth management.
While you can do it yourself, investors may generally choose to hire an investment advisor or fund manager as it requires substantial market research. Investment managers will provide the best strategy for investment based on a client’s risk appetite, profit goals, current inflows and even age. While formulating a strategy is one part, they also monitor the investments and in most cases actively manage the portfolio for their clients.
Investment management and advisory are rife with scammers as anybody can claim to be an investment manager. In most countries, the title itself is not protected and no certificate is needed. Frequently, a scammer impersonates a legitimate investment firm or an employee of one and then loots the investor.
Our advice:
In general, professional Investment firms only take on accounts that can invest at least $ 100,000. The reason is simple; the costs of their advice and transaction fees are simply too high for the amount which can be invested. An investment manager willing to work for a lower investment is probably not a real investment manager. If you have less to invest in, we recommend contacting your bank for a reliable investment product.
Other tips:
Any financial services entity will be registered with the local regulator and it is always advisable to do a background check on them before transferring any money.
It could be difficult to find someone to trust your money with, especially with the wide number of options available. Here we list the largest and the most popular investment management firms from across the globe.
Name | Assets under management (AUM) |
BlackRock | $8.7 trillion |
Vanguard Group | $6.2 trillion |
UBS Group | $3.5 trillion |
State Street Global Advisors | $3.5 trillion |
Fidelity | $3.3 trillion |
Allianz | $2.8 trillion |
JPMorgan Chase | $3 trillion |
Bank of New York Mellon | $2 trillion |
Capital Group | $1.7 trillion |
Pacific Investment Management Company (PIMCO) | $2.2 trillion |
*AUM is the total market value of the investments a company manages on behalf of its clients.