1.
Investment
Management

2.
 Investment management refers to the handling of financial
assets and other investments not only buying but also selling
them.
 Investment Management consists of devising a short or long
term strategy for acquiring and disposing of portfolio
holdings.
 It can also include banking, budgeting, and tax services and
duties, as well.
 The term most often means to managing the holdings within
an investment portfolio, and the trading of them to achieve a
specific investment objective.
What is Investment Management?

3.
What is Investment?
 The term ‘investment’ or ‘investing’ is closely related to
concepts in economics, finance, and business management.
 Investment refers to the active redirection of monetary
resources and assets towards profit generation and future
benefits, rather than consuming them as they are generated.

4.
Who is an investor?
 Investors could be institutions or private investors.
 Institutions, which primarily invest in assets, include
corporations, pension funds, insurance companies, etc.
 Private investors are those individuals who have, directly
through investment contracts or through collective investment
schemes, (like exchange trade funds or mutual funds), made
investments for future income.

5.
Objectives of investment
 Safety
 Growth
 Income
 Tax Exemptions
 Liquidity

6.
Characteristics of investment
Main features or characteristics of investment:
1. Risk Factor
2. Expectation of return
3. Safety
4. Liquidity
5. Marketability
6. Stability of Income

7.
Factors Favourable for Investment
(i) Management Outlook .
(ii) Competitor’s Strategy.
(iii) Opportunities created by technological change.
(iv) Market forecast.
(v) Fiscal Incentives .
(vi) Cash flow Budget.
(vii) Non-economic factors.

8.
Types of investment
1. Stocks: There are two types of stock:
a. Common stock and b. Preferred stock
2. Bonds: Bonds are considered a more stable investment
compared to stocks because they usually provide a steady flow of
income.
3. Cash equivalent: Cash equivalent investments protect your
original investment and let you have access to your money.
It include:
 Savings accounts
 Money market accounts
 Certificates of deposit (CDs)

9.
Investment process
 An investment process is a set of guidelines that govern the
behaviour of investors in a way which allows them to remain
faithful to the principles of their investment philosophy.
 The process of investment involves careful study and
analysis of the various classes of assets and the risk-return
ratio attached to it.

10.
Stages of the Investment Process
The investment process is summarised in 5 key
stages:
 Assess Current Financial Situation;
 Define Investment Objectives;
 Allocate Assets;
 Select an Investment Process Strategy; and.
 Monitor and Manage Investment Process.

11.
DIFFERENCE BETWEEN INVESTMENT AND SPECULATION
S.I Investment Speculation
1. Investment is rationally based on the knowledge
of past share price behaviour.
Speculation is purely based on the hope that the
future price will be higher rather than on
anything tangible.
2. Investment requires an investor to do some work
before hand and decisions are made based on
known facts and figure.
Speculation is usually based on wild rumours
and unsubstantiated hearsays which cannot be
checked for accuracy.
3. Investment is made for the long term i.e. two
years or more .
Speculation is usually for the short run.
4. Over a long period of time, true investment tends
to produce a positive result and True investors
can sleep soundly at night
Speculation is likely to lead to many sleepless
nights and anxious days since its result is so
uncertain.