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What’s The Job Of An Investment Manager?

Investment manager is basically an organization or a person who is focused on making investment in portfolio of security on behalf of their clients. And this is all done in line with investment objectives as well as parameters defined by clients. Such might be accountable as well for all the activities associated with proper management of the client’s portfolio from selling and buying securities daily to monitoring of portfolio, performance measurement, regulatory and client reporting as well as settlement of transactions.

As a matter of fact, investment manager range in size from 1 or 2 person offices to big multidisciplinary companies with offices in various countries. The fees for such are based generally on percentage of the client AUM or Assets Under Management.

So to give you a quick example, a person with a 5 million dollar portfolio that’s handled by investment manager who is charging 1.5 percent annually will pay 75,000 in fees.

There are different types of investment manager and it is crucial for investors to have a good understanding of each. CFPs or Certified Financial Planners usually develop a holistic financial plan for investors which take info like future cash needs, expense and income into consideration. FA or a Financial Advisor is a broad term to use actually however, this mostly refers to stockbrokers. Portfolio managers or PM are directly investing the investor’s capital with the goal of providing high returns of investment.

Investors have to determine what kind of investment manager they need, which likely depends on what stage of financial planning procedure they are currently in. It is critical that you perform a background check of professional regulatory qualification of investment manager, review for complaints that were filed before and make sure that the manager has the experience and skills required is something that investors have to do. Investment managers should be easy to contact to and taking specific needs of their clients into account. As financial needs are so dynamic, investors should feel more comfortable in reaching out to their investment manager at short notice because this is the only way that service could be customized according to their needs.

Investment manager’s performance is something that should be evaluated and reviewed. In an effort to determine the performance of investment manager in different market environments, it is critical for the investors to assess at least 5 years of their investment returns. When planning to hire a manager to handle your investments and other assets, the fee structures should be considered too.

Needless to say, caution should be practiced at all time to avoid any troubles while working with an investment manager.