The State of Investment Management and the Role Millennials Will Play

Updated on December 19, 2022

Investment management according to the business encyclopedia is the act of buying and selling investment with a specific objective in mind. It refers to activities done over a portfolio that include but not limited to trading of securities, bonds, real estate and shares. It also entails the art of budgeting, banking, and paying taxes as well.

Investment management has other names: private banking, portfolio management, and money management. Keep on reading to learn more about investment managers, and how your company may benefit from them.

Managing one’s investments requires a specified goal in mind that investors or a group of investors wish to meet. Those taking part can be a group of individuals, for example, Diamond and Diamond lawyers, who want to increase their wealth or institutions that hire fund managers to advice on investment choices that whole entities, for example, pension funds or insurance companies, and can benefit from taking part. Fund managers, in that case, would offer financial analysis, asset allocation, provide a selection of stock options to the client and keep an eye on current investment. For execution to take place, a fund manager or investment manager has to work with individuals or entities to understand their goals, plan accordingly and manage both tangible and intangible investments.

Investment management is changing. In the US, according to Deloitte, 95.8 million people are investing in mutual funds as well as exchange-traded funds. That constitutes for about 44 percent of households in the country. There has been a steady growth in the past five years, but experts say that in 2018 and onward, millennials will cause a shift in how the industry operates. Their optimism in the stock market and returns is the primary reason for this. Given that most investment management firms work with older generations, it in their best interest to shift their focus to this age bracket to avoid losing out.

How much is the investment management industry worth? According to a 2017 PricewaterhouseCoopers report, in 2015 it was estimated to be worth $79 trillion. While this number is significant, investment management firms are not entirely on the winning side. The market’s behavior affects their revenue model. That means when the market is underperforming; their profits take a hit. An additional difficulty in firms comes from clients unhappy with the state of their portfolio. During hard times, retaining clients becomes a struggle. It is, therefore, the role of seasoned manager to quell impatience in their clientele.

These same managers ought to now focus on Millennials as more Baby Boomers age and reduce significantly in the global economy. To remain relevant and competitive, they have to tailor their services to attract Millennials’ behaviors and expectations.

The Editorial Team at Healthcare Business Today is made up of skilled healthcare writers and experts, led by our managing editor, Daniel Casciato, who has over 25 years of experience in healthcare writing. Since 1998, we have produced compelling and informative content for numerous publications, establishing ourselves as a trusted resource for health and wellness information. We offer readers access to fresh health, medicine, science, and technology developments and the latest in patient news, emphasizing how these developments affect our lives.