INVESTMENT MANAGEMENT

INVESTMENT MANAGEMENT

investment is an activity that is engaged in by people who have savings, that is investment is a part of our savings. Investment involves employment of funds for the purpose of future income and profit.

“a commitment of funds made in the expectation of some positive rate of return”

characteristics of investment

1. Return : return is the main factor in every investment, every one asks “what is my return in this business..?” . It's the primary objective of investment.
2. Risk : risk is inherent in every investment, otherwise it is compliment to return, if return is high risk is also high, if return is low, then risk also low.
3. Safety: safety of investment is another important factor in investment decision, every investor will evaluate the safety of investment.
4. Liquidity:liquidity of investment is another aspect, if liquidity is high it can easy for exchange.

OBJECTIVES OF INVESTMENT MANAGEMENT 

The investor has various alternative avenues of investment for his savings to flow. savings kept as cash barren and do not earn anything. the investor has some objectives on his investment that are:

1. maximization of return.
2. minimization of risk.
3. hedge against inflation.

INVESTMENT AVENUES

1. corporate securities. : these securities that issued by joint stock companies, in the private sector, these contains equity shares, preference shares, debenture...
2. deposit of bank: this includes deposit of our savings in banks or another financial institutions, these include saving bank account, current account, fixed deposit ...
3. mutual fund scheme:mutual fund schemes help to collect small amounts from the hands of different persons and help to investment in securities.
4. post office deposit:it is a system which helps to collect fund from village or rural area.
5. life insurance schemes: life insurance policy helps to accumulate our savings in to one account.
6. provident fund schemes:provident fund scheme help collect a part of earnings from the hands of employees. it develops investment for employees.
7. govt and semi govt securities:these are securities issued by govt, for the purpose of fund collection to govt. 

investment is a financial activity that involves risk. it is the commitment of funds for a return expected to be realized in the future. investments may made in financial assets or physical asset.