Investment management is a general and commonly used term that refers to purchasing or buying of investment and selling the same within the same area of responsibility. As per Larry Polhill that the scope of work is also includes research of particular assets, making deals, marketing of shares, internal auditing, and preparation, and presenting the report to the clients. This service may also extend in banking services and budgeting and as well as tax-related matters. Their responsibility often involves insecurity buying and selling to gain a definite investment purpose. Investment management often termed as management of money, banking both private and national, securities, different assets like bonds, share trading, real estate business and many more.

Investment management consultancy services provide the clients with logical and unbiased planning solution, independent and unbiased financial planning and with investment advisory services. Motto of investment management consultants in assisting their clients in achieving their financial target, fixing their expectation in a realistic way and carrying out a systematic as well as a strategy of saving to achieve their target.

All reputed investment management experts possess few important qualities that make them successful. Those are:

Business curiosity

Autonomy-deserving attitude

Key problems faced by investment management consultant business

  • Revenue is directly linked to a market and varies with market fluctuation. Major fall in index may produce catastrophic result
  • Fund performance is being unstable and clients may not keep patient during market fall
  • Great fund management consultant is expensive and may shift to another potential organization
  • Good fund performance depends upon the personal skill of the consultant. Clients are bound to depend upon the performance of a few individuals

Three basic principles are often referred to explain the reasons why the consultant shall be able to attain the satisfactory financial goal. Those factors are philosophy, process and people.


The philosophy is related to the parameters like

  • Priority of the consulting group among actions like buying growth or give importance in share marketing
  • Do the investment management consultant believe in timing of the market rise or fall ?
  • Whether the investment manager depends on external study or research work and hires a team of researchers.
  • Which asset is explored before a choosing a particular asset?
  • How does the consultant decide what commodity is to procure and its timing?
  • Who is the decision, maker?
  • What precaution is taken to avoid rough fund?

Allocation of asset

In the opinion of Larry Polhill, common assets are stock, bond, real estate, and marketable commodities. The correct and successful procedure of allocating funds among these classes is the main cause for paying fees to an investment management-consulting firm. Location of money in different assets has a phenomenal effect on the performance of the fund.

Styles of investment

There is a wide range of style of allocation and management of funds. Important styles are a growth of the fund, a value of the asset, growth at a reasonable price, mini capitalization and many more.