Investment Management
Investment Management
Investment Management, centres around three types of practice:
Direct Investment describes investments in a particular, identifiable holding, usually a share or a gilt.
Collective Investments result in the investor obtaining ownership of a number of holdings, usually through investment in a Unit Trust, Investment Trust or an Open Ended Investment Company(OEIC).
In general, Direct Investments tend to be a riskier option than Collective Investments, as they do not benefit from the same levels of diversification.
Furthermore, in general, Insurance based products tend to be considered a lower risk than both Direct and Collective investments as they are able to incorporate a number of asset classes - cash, equities, bonds and property for example, into one single fund.
Factors that need to be considered with investment management include:
- Inflation Income or Growth Requirements
- Liquidity
- Attitude To Risk
- Lump sum/Regular Saving Diversification
- Tax Efficiency
- Cost
- Other Priorities
