Investment manager. How is investment management carried out? Credential-based metrics
Investment management is a specific area of management activities that is associated with the financing of business plans for subsequent profit. It includes various ways to manage money, which allow investors to reduce their own costs and get the expected profit from the project.
Such management is carried out at different levels - from the creation of a small new organization to issues at the state level. Investment management has a certain methodological base, in accordance with which the evaluation of the effectiveness of investing in individual business entities is carried out.
The main functions of investment management include:
- initial;
- organizational;
- coordinating.
Initial
The initial one also provides for the preliminary approval of the entire proposed investment. At this stage, the strategy for the implementation of the project is determined, taking into account all the features of the activity of the investment object. The main goal of the initial function is to ensure the successful implementation of the business plan.
Organizational
The organizational function involves determining the volume of investment and the form of attracting funds. At this stage, the most promising investment projects and the management algorithm are determined, as well as the search for potential investors.
coordinating
Much attention in the investment activity is given to the coordinating function. It is necessary to analyze and evaluate the effectiveness of actions at all stages of the process, to take into account changes in the situation in a timely manner, and to correct previously made decisions.
Tasks and goals
- minimization of all risks;
- maximum increase in income;
- ensuring the growth of profitability of the enterprise.
Investment management provides for the analysis of all existing risks and includes various effective methods that are aimed at obtaining the maximum return on investment and reducing risks. The main goal is to choose the right portfolio that can bring good returns. The main functions of managers are:
- determining the most appropriate strategy;
- drawing up a business plan;
- profitability assessment;
- timely adjustment of the portfolio;
- assessment of attractiveness in financing a certain enterprise;
- determination of volumes and quality of securities;
- ensuring regulation of the entire process.
To engage in such activities, it is necessary to have knowledge of macroeconomics, accounting, regulatory documentation, taxation and analysis. Without certain analyzes and calculations, investors will not be able to expect successful results.
Any person who decides to invest should be familiar with the methods for calculating the profitability of investments and assessing risks.
Investments appeared in our country not so long ago. Previously, there was no securities market in the USSR, and people could not invest their own funds in various financial instruments. Today, anyone can invest and make transactions for the purchase and sale of long-term and short-term financial obligations.
Stages
Investment process management consists of a number of stages:
- development of tactics;
- analysis of securities;
- creation of investment portfolios;
- constant timely adjustment of portfolios;
- analysis of work performed.
Tactics are developed taking into account all the goals of investment, the financial capabilities of the investor, the level of expected profit and the risks involved. To determine the attractiveness of the project, two types of analysis are used: technical and fundamental.
Technical analysis involves constant monitoring of the securities market and forecasting the value of individual assets. The main objective of this analysis is to identify growth trends in the value of assets at the stage of recovery.
Fundamental analysis provides for familiarization with macroeconomic indicators. To determine the degree of risk and the level of expected profitability of the project, the following are taken into account:
- financial stability of the enterprise;
- liquidity;
- reputation, etc.
Based on such indicators, the prospects for the development of the enterprise are determined and investment decisions are made.
What is investment management and what are portfolio management strategies? How to manage real investments and current assets? Who manages the company's financial investments?
Managing investments is like driving a car. If you are an experienced and attentive driver, the trip will be easy and enjoyable - you will get to where you need to on time and with comfort. If you are a beginner, any intersection will require the utmost concentration of attention and seem like a concentration of dangers.
The more practice, the easier the management process. The main thing is to understand the basic principles of investment management and learn how to correctly assess risks, and in time you will learn how to manage investments with the skill of a Formula 1 racer. I, Denis Kuderin, an investment specialist, will tell you how to do this in a new publication.
Those who have read to the end are waiting for an overview of the three most reliable companies in the Russian Federation that will help you correctly manage your investments, plus tips on how to get the maximum income from investments.
So, let's begin!
1. What is investment management
The main goal of investment management is to get the maximum profit from investments. The fact is obvious, but we should not forget about it. This is achieved in different ways, depending on the type of investment project, the volume of assets, and the temperament of the investor.
Some investors prefer to act prudently, others like to take risks, others delegate project management to professional managers. But it does not matter which method you choose - you need to soberly assess your own strengths and the potential of the investment project.
Basic principles of investment management:
- maximization of income;
- risk minimization.
Investment management is carried out by both private investors and large commercial corporations. Even government structures do this by investing in entire sectors of the economy. Sometimes federal agencies encourage private investment in a particular problematic sector.
Example
The state strongly encourages and even helps to manage them. Thus, investors are provided with preferential terms of lending: interest on loans is paid from the state budget, entrepreneurs return to banks only the body of the deposit.
Thus, the agricultural sector in the country is developing, and businessmen themselves get more benefit from deposits.
Project management is a sequence of precise decisions that the responsible person makes on the way to achieving the goal.
In the process of investment management, the investor:
- assesses market prospects;
- chooses the direction of investment;
- forms an investment portfolio;
- develops an investment management plan;
- predicts the development of the project;
- implements the project;
- monitors results and adjusts the process as needed.
Investment activity has its own unshakable rules. When managing the process, the investor necessarily takes into account the dynamics of profitability, payback and implementation periods, and the current cost of the project.
With proper management, the project satisfies the following conditions:
- income from investments exceeds the profitability of bank deposits;
- the profitability of the project is higher than the rate of inflation;
- the level of risk is predetermined;
- investments have maximum liquidity;
- the tasks of all participants in the process are clearly defined.
A qualified investment manager is an expert in economics, a connoisseur of technical analysis and mathematical modeling, an expert in the legislative and tax spheres.
This does not mean that private investors should not take on new promising projects. Ordinary citizens have a lot of chances for success if they follow the basic rules of investing. For example, they do not take risks without a preliminary analysis of the situation or do not invest in a direction in which they do not understand.
The problem is that residents of the Russian Federation and neighboring countries have trouble with financial literacy. Most people can't even spend their salary rationally and don't even think about how to make their money earn new money.
2. What strategies are used in investment portfolio management - 3 main strategies
Investment strategy is synonymous with risk management. You develop a specific sequence of actions that leads to the achievement of the goal. A strategy is an implementation scenario that takes into account, if possible, all the factors influencing the final result.
You need to clearly understand what risks you are willing to take. Warren Buffett, one of the most successful investors in history, said: If you can't watch the market drop 50% before your eyes, then you shouldn't be investing.". Alternatively, choose the most conservative portfolio management strategy.
If you still do not know what it is, read the material on this topic.
If you already know, let's move on to specific strategies.
Strategy 1. conservative
Such a strategy implies a minimal risk of losing investments, but also a relatively low amount of income (no more than 20% per annum). With regard to exchange transactions, this is, for example, the purchase of bonds with a fixed price.
Other options for conservative deposits are, unallocated metal accounts, real estate investments, mutual funds with a conservative policy, deposits, insurance savings programs, contributions to.
Advanced investors combine conservative investments with high-risk ones.
Example
The investor places 25% of the assets in government bonds, puts 25% in a foreign currency deposit, and distributes the rest of the money between the shares of blue chips and developing promising enterprises.
Completely conservative investments guarantee almost 100% capital preservation, but the income does not always exceed the inflation rate. In this case, the amount of profit is usually known in advance. Overhead costs are minimal, turnover is low, payback periods are long.
A passive conservative strategy is suitable for those investors who do not want to take risks and do not have time for active actions. Managing such investments is easy and simple: "bought and forgot before receiving dividends."
Strategy 2. Moderate
They are characterized by an average level of risks and profitability (up to 50% per year). Such indicators are in the shares of large companies, investments in production, promising start-ups and other areas that require active participation and economic knowledge from investors.
Moderate deposits are: mutual funds of mixed investments, PAMM accounts, investments in securities of non-state companies,.
This also includes a relatively new product on the financial market -. Only individuals in brokerage firms and management companies have the right to open such a deposit. With investments up to 400,000 rubles, the state provides tax benefits. Annual income averages 18-30%.
Strategy 3. Aggressive
An aggressive strategy is a risky game for people with nerves of steel and decent cash assets. This includes financial pyramids, untested technologies, the latest market trends with uncertain prospects, start-ups.
The volatility of such instruments is maximum. You can either lose everything or increase the initial capital by 100-1000%.
The table shows the main investment instruments corresponding to the strategies:
3. How to manage investments - 7 main steps
Obviously, investing your own 100,000 rubles and managing millions of assets of a large company are not the same thing. However, the general investment management rules are valid for both private and corporate investors.
In both cases, you need to be able to calculate risks, see 10 steps ahead, navigate the current economic situation, use current technological developments and follow the principles of reasonable expediency.
The most difficult thing is to manage real investments, since in such a situation money is invested in “live” production processes or, for example, construction. Only professionals can calculate all the costs of working capital and estimate the amount of future profit.
For this reason, company executives often invite third-party specialists from consulting firms to manage large investment projects.
In general, the process of investment management is as follows.
Stage 1. Analysis of investments in the previous period
It is assumed that the investor is no longer a novice in the business of profitable investments. He evaluates the effectiveness of his past investment projects, analyzes mistakes and identifies strengths.
A private investor draws approximately the following conclusions:
“Yeah, last time I somehow succeeded with bonds, but futures and options are clearly not mine, it’s better not to mess with them. It is better to pay attention to the shares of domestic giants - this season they are steadily going uphill.
With large investment projects it is more difficult. It is necessary to conduct a detailed analysis of the market situation, assess the total amount of the company's working capital, and study the main forms of investment that were previously used.
Stage 4. Development and evaluation of investment projects
An investment project should meet the long-term goals of the company and, if possible, solve current financial and production problems.
The development of a serious project should be entrusted to professional managers. They will assess the liquidity and profitability of investments, calculate possible risks, and carry out competent diversification, that is, they will distribute funds among different instruments.
Stage 5. Formation of the investment program
The investment program is a detailed plan for future financial activities. Large financial projects are impossible without the distribution of responsibilities: they appoint managers, executors, financial consultants responsible for the legal part.
Stage 6. Implementation of projects and programs
Difficulties often arise at the implementation stage of a project. To successfully overcome them is the task of specific performers. Large projects require competent control and accounting at all stages of implementation.
A private investor is his own director and executor. He has no one to blame if he fails. Therefore, it is necessary to monitor the implementation and monitor intermediate results carefully and soberly.
Stage 7. Program execution control
Within the framework of the enterprise, control of investment projects is entrusted to direct supervisors.
The investment life cycle varies from a few months to several years. To make a correction in time, withdraw assets and enjoy the triumph - an art that is learned mainly in practice.
4. Where to get help in managing financial investments of an enterprise - an overview of the TOP-3 companies
The participation of a professional partner reduces investment risks and increases profits.
The experts of the HeatherBober magazine have chosen the 3 most reliable and promising companies for investors. They will take care of both the choice of investment instruments and the management of deposits if you order such a service.
1) Opening Broker
The company has been operating in the financial market since 1995. The total number of broker clients is 95,000. In 2016, the total volume of client transactions on the Moscow Exchange amounted to 14.5 trillion rubles. Otkritie Broker is the leader in the growth of new clients in 2016. The company has repeatedly been awarded professional prizes and diplomas.
Users have access to: investments in their own business under an affiliate program with stock market leaders, deposits in foreign exchange products, opening a brokerage account and IIS, assistance in building an investment portfolio, training in the basics of profitable investment.
2) ZERICH Capital Management
Year of foundation - 1995. Monthly turnover - 600 billion rubles. Reliability rating from the National Rating Agency - AA. A network of branches in the largest cities of Russia. Only professional staff and consultants.
Services on the stock and stock markets of the world, brokerage and depository activities, assistance in managing finances and investments. The company's clients have access to investments in securities, earnings on fluctuations in oil and gasoline prices, and other promising instruments.
"ZERICH Capital" accepts the assets of private individuals and corporate funds in trust management. Income on the strategy "Russian Shares" - 46% per annum.
3) BCS
BCS Management Company provides private and institutional clients with a wide range of financial services. The main line of business is professional asset management. The organization has been operating since 2000, has an AAA rating (maximum reliability), 12,000 investors, 50 offices throughout Russia.
The mission of the company is long-term and reliable investment solutions for each user. The list of tools for multiplying capital includes mutual funds, investments in profitable areas of the economy, personal trust management strategies. The assets are managed by a professional team of financiers with many years of experience in the capital markets.
5. How to Succeed in Investment Management - 4 Helpful Tips for New Investors
Competent investment management requires a cool head, a warm heart and a quick reaction. An ordinary investor does not have to be a financier - engineers, teachers, and former military men successfully cope with investments.
To start investing, basic knowledge is enough. Understand financial instruments, read blogs and studies of practicing investors (the same Warren Buffett or Kiyosaki), learn the principles of the stock exchange and securities.
Active strategies are not suitable for overly emotional people who tend to make impulsive decisions. I'm not talking about women now, but in general about everyone who reacts too violently to events. If you belong to this type of people, choose extremely conservative investment instruments - bonds, deposits, precious metals.
And some more helpful tips.
Tip 1. Engage independent experts to analyze projects
I have already spoken about this, but I will not be too lazy to repeat - the participation of professional analysts and experts increases the chances for the success of an investment project. It is difficult to say how many percent, because it all depends on the volume and type of investments.
Experts will see risks you didn't even think about and calculate desired, a objective income from financial transactions.
Tip 2. Direct most of your investments to conservative risks
For professional investors, the basic share of the investment portfolio is represented by conservative instruments. This is a kind of safety cushion that will save your investment in case of failure of all other tools.
Investment manager
INVESTMENT MANAGER
(investment manager) See: an employee of a financial institution managing its investments (fund manager).
Finance. Dictionary. 2nd ed. - M.: "INFRA-M", Publishing house "Ves Mir". Brian Butler, Brian Johnson, Graham Sidwell et al. Osadchaya I.M.. 2000 .
Investment manager
An investment manager is an employee of a bank or other financial and credit company who manages a portfolio or investments (on behalf of investor clients).
In English: investment manager
Synonyms: Investment Manager, Cash Manager, Portfolio Manager, Portfolio Manager
English synonyms: Money manager, Portfolio manager
Finam Financial Dictionary.
See what "Investment Manager" is in other dictionaries:
- (investment manager) See: an employee of a financial institution involved in investments (fund manager). Business. Dictionary. Moscow: INFRA M, Ves Mir Publishing House. Graham Bets, Barry Brindley, S. Williams et al. Osadchaya I.M ... Glossary of business terms
Investment manager- (investment manager) Also called portfolio manager and money manager. An employee who manages a portfolio or investment... Investment dictionary
- (Investment manager; Cash manager; Portfolio manager; Portfolio manager) An employee of a bank or other financial and credit company managing a portfolio or investments (on behalf of clients ... ... Glossary of business terms
Manager (English manager): Manager, manager or manager responsible for a certain area of activity of the enterprise (personnel manager, investment manager, public relations manager, financial manager ... Wikipedia
A company hired by a mutual fund to provide professional investment advice and asset management practices. The investment advisor is responsible for developing the investment policy, which then guides... ... Financial vocabulary
value oriented manager- (Value manager) - an investment manager (responsible for investment processes in the company), whose priority goal is to ensure capital growth (increase in the market value of the company) in the long term ... Economic and Mathematical Dictionary
value oriented manager- Investment manager (responsible for investment processes in the company), whose priority goal is to ensure capital growth (increase in the company's market value) in the long term. )