Definition of Investment Management

Raising investment in a company or entering the financial market for your investment implies awareness of this area and the ability to make quick decisions and adjust to the situation. In this process, you must start with a basic definition of terms and impact systems. So, investment management is defined as actions to create and increase the income from invested funds.

Do you want to know in detail what investment management is?

The investment management system plays a vital role for any company. After all, the interaction in the market provides financial growth, stability of development, multiplication of capital, and other things. One of the main participants of this process is an asset management company (AMC). This is a legal entity that, under the management of a professional manager, manages the funds of individuals or organizations. Their work is based on making decisions, controlling risk factors, and building strategies for their clients to increase profits and diversify their portfolios.

There are several types of asset management companies in the financial investment industry. They are categorized into:

• Traditional asset management firms, which provide portfolio management services for stocks, bonds, and other financial instruments;
• investment funds, which manage collective investments by pooling the funds of many investors to purchase a portfolio of assets;
• hedge funds, which actively manage assets for high returns using sophisticated investment strategies;
• private investment funds, which make long-term investments in private companies or startups;
• nonprofit organizations that specialize in managing funds for nonprofit organizations, such as charitable foundations and educational institutions;
• and robo-advisors, a new investment management company that offers automated services using artificial intelligence technology and algorithms.

Registering a company with a reasonable choice of existing types of asset management companies

Determining the most suitable asset management company from the existing types is a serious process that depends on many factors. Your choice should be based on your current investment objectives, time horizon, risk level, preferred financial instruments, and other aspects. For this purpose, we recommend you consult a financial advisor, who will help you draw conclusions based on the assessment of experience, reputation, historical results, analytics, and profitability. 

After clearly defining and elaborating the strategy, we will help you register an asset management company. We are engaged in the legalization of companies based on the legislation and payment systems of the Czech Republic. This country is the most attractive and loyal to the development of financial investment in the European market. If you still have questions or want advice from our manager, please get in touch with us as soon as possible.