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What is investment management?

Handling finances doesn’t come naturally to everyone. And the more complicated your financial situation, often the more daunting the prospect of managing it is. This is a key reason why you should consider hiring a professional — in this case, an investment manager.

If you are a high net-worth individual (HNWI), an investor, or you have bought stocks, you can benefit from the expertise and advice that an experienced investment manager can provide.

In this article, we’ll explore the topic of investment management. We’ll take a look at what an investment manager does and how they can help you expand and diversify your investment portfolio. We’ll also explain what to look for when choosing an investment manager so you find the right one for your needs. So, without further ado, let’s get stuck in!

What is an investment manager?

An investment manager is a company or individual that manages investment portfolios or collections of financial assets on behalf of clients. Their role is to implement short-term and long-term investment strategies in alignment with their client’s financial goals.

Investment managers use their experience and insight to build portfolios and make decisions about investments, from diversifying portfolios to buying and selling securities. They can also deal with more day-to-day aspects of money management, such as completing bank transfers. This said, how much involvement and control an investment manager has will differ depending on the client.

What is a fund manager?

Fund managers are responsible for implementing investment strategies for different types of funds, such as mutual funds and hedge funds. They can be in-house or work for a fund management company.

Although fund managers and investment managers have similar responsibilities, such as dealing with wealth management and implementing investment strategies, the job roles have different focuses. Fund managers solely work with funds. These are collective investments that are pooled together and intended for a specific purpose — such as insurance funds and pension funds. On the other hand, investment managers work on behalf of clients and in doing so, focus on managing bonds and assets.

Is it worth hiring an investment manager?

Whether you should hire an investment manager will greatly depend on your circumstances. If you’re a casual investor who is only investing a small amount of capital, the cost of hiring an investment manager may not be worth it, as you can do things like buying stocks online yourself. However, on the other hand, you may benefit from hiring one if any of the following apply:

But when it comes to money management, there’s no hard and fast rule about whether you should go to a professional. So, to further help you decide whether it’s worth hiring an investment manager, let’s run through the main benefits and potential disadvantages.

Pros and cons of investment management

We’ll start things off with the pros of hiring an investment manager. These include:

But of course, like most things, there are also some things to consider before jumping into hiring a professional to manage your financial assets. Here are some potential drawbacks of using an investment manager:

Can you manage your own investments?

In short, yes, you can manage your own investments. For those with experience in portfolio management, there may not be a need to hand things over to an investment manager. Or, if you’re only investing small amounts and you want to learn yourself, there are plenty of online resources and great books about the stock market that can guide you.

But, if you are new to investing or want to invest a significant amount, it is always advisable to hire an investment manager. With their experience and expertise, they will be able to reduce the risks of investing and help you achieve your financial goals.

How to choose an investment manager?

There are many types of investment management firms out there. For this reason, finding and choosing the right investment manager requires research. The aim is to find one who you trust and are comfortable having over the responsibility of your financial assets to.

With this in mind, here are the things to look at when choosing an investment manager:

These factors should give you a good idea of the areas you should research and find out more about when hiring an investment manager. But, if you’re looking for a well-known investment management firm, here are some to check out:


Investment management is the process of managing financial assets and investments through the use of investment strategies. While this is something that you can do yourself, it is recommended you hire a professional. The reason is that investing can be risky, particularly if you’re seeking to invest a lot of money or you’re not experienced. So yes, you can learn how to do your own investments due diligence, but when it comes to money management, it often pays more to use an investment manager and make use of their skills and experience.

They will be able to assess your current investment portfolio and make new investments on your behalf. They should do this in alignment with your goals and attitude to risk.

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