Henson Crisp taking care of your future, offering specilaist retirement advice in Peterborough and London

What is investment management?

What is investment management?

Protecting and managing wealth is at the heart of investment management.

Investment managers are paid to make money for their clients by managing individual portfolios whilst maintaining a level of risk and return that the client wants.

Investment management seeks to grow capital and generate income for individuals and business alike.

Investment management can also be known as asset management; a client gives money to an asset manager, who then invests it to meet the client's objectives.

A good investment management strategy should be designed to capture the long term returns expected from investment markets whilst balancing, understanding and mitigating the risk presented in the short term.

Asset Allocation

Asset Allocation involves how much money you put into shares, bonds and cash. Spreading your investments across these main asset classes helps to diversify your investments.

Shares deliver the best returns over time but carry a greater risk; bonds are traditionally less volatile but deliver lower long-term returns; cash is safe but low return.

Four key elements for a successful portfolio

  • Understand each of your investments
  • Regularly add new investments to your portfolio
  • Make sure each investment is tax efficient
  • Create a well-diversified portfolio (spread the risk)
The ideal investment management plan would aim to combine low costs with an appropriate portfolio mix for the age and time limit of each investor. Many pension plans for example operate this way.

Why is investment management so important?

Investment management connects savers, who want to invest their money over the long term, with the companies and projects that need money for their own long-term growth and spending. That long-term growth in turn helps to generate the returns that savers will need to fund their retirement and meet their savings goals.

Investment management is largely protected against the volatility of the market. Asset managers charge clients a fee based on the amount of money they are given, so they are guaranteed to make money so long as they attract investment.

Benefits of early investing

Many people believe they are too young to invest and consider their retirement. In a lot of cases young people are not thinking of investing, they would rather live for the moment, buying cars and gadgets and often think that small investments are not going to do much for their future.

By investing early you benefit from compounding which is interest earned on top of interest. Due to compounding if you miss early years of investing it will be more difficult to catch up.

Old age Dependency impacting on investment

old age dependency and importance of retirement

The investment management market is now one of the few that broadly impact households all over the world.

The old-age dependency rate is set to rise and pension deficits have increased, this means more people than ever before are planning for their future financial needs.

As a result, the industry is increasingly visible. Investment management has become an even more important part of the financial services industry.

To discuss your Saving & Investment needs or to arrange a meeting directly, call us on 01733 355120 or email enquiries@hensoncrisp.com

The value of investments and income from them may go down. You may not get back the original amount invested.

Because of the current Coronavirus situation, we are changing how we conduct our meetings Learn more →

Henson Crisp Limited

Telephone: 01733 355120 / 02036 377140
Email: enquiries@hensoncrisp.com

Registered Office:
Ground Floor Bank House, The Lawns, 33 Thorpe Road, Peterborough, PE3 6AB.
Registered in England, No. 06266686

Offices in both Peterborough and London.
Financial Advice for individuals and companies.

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Henson Crisp Limited cannot be held responsible for the accuracy of the content of external websites.

The information contained within this site is subject to the UK regulatory regime and is therefore targeted primarily at consumers based in the UK.

Regulatory Statement

Henson Crisp provides Independent Financial Advice.

Henson Crisp Limited is authorised and regulated by the Financial Conduct Authority (register.fca.org.uk/). Financial Services Register No: 469175

Our alternative dispute resolution provider is the Financial Ombudsman Service.
Their website is financial-ombudsman.org.uk