Institutional investment management offers guidances and supervision of institutional investment. The institutional investment managers try to ensure that the institutional investors get the maximum returns on their investments in a risk-free manner.
About Institutional Investment Management
Institutional investment management is a technique for managing the entire process of institutional investment and the various risks associated with it. Investments are pooled from the corporate clients and these investments or assets are allocated or distributed in such a manner that they can reap the maximum benefits for the investors.
In this process the institutional investment managers take the help of numerous risk management techniques. The institutional investment portfolios are larger than individual portfolios and are more diverse in nature.
So managing the institutional investment portfolios requires more skills and knowledge. The institutional investment managers possess higher qualifications like MBA, CFA, CPA and others and have quite a bit of expertise in the field of institutional investment management.
Institutional investment management is mostly carried out on a discretionary basis where emphasis is given on the investment decisions of the institutional investment management professionals. Institutional investment management services are normally tailored for institutions with trustees, directors and officers who are looking for both investment management and strategic investment recommendations. Fiduciary conditions are regarded as a significant factor in the contemporary institutional or corporate governance and institutional investment management may assist in satisfying those obligations.
The institutional investment consultant works with the client to help him ascertain the suitable time and form of institutional investment. The investment objectives are also evaluated. When the investment process is on, the institutional investment manager is also involved in monitoring of the investment. If any modification is required, the institutional investment manager will provide that tip or advice.
According to the basic philosophy of institutional investment, the institutional investment managers should always try to fetch optimum return from their clients’ investments by diminishing risk through a number of risk management techniques.
Advantages of Institutional Investment Management
Institutional investment management offers the following benefits to the investors:
Professional approach towards investment management
Tailor-made account forms
Transparent and all-inclusive reporting
Flexible investment plans
Last Updated on : 5th July 2013