Investment management - 7 stages of managing current assets of an enterprise + investment portfolio management strategies

Hello! In this article we will talk about the effectiveness of investment management at the enterprise and individual level.

Today you will learn:

• What types of investment exist;
• How to properly organize the investment management process;
• Why are brokers needed and is it possible to do without them?

What is investment management

The main goal of investment management is to obtain maximum profit from investments. The fact is obvious, but we should not forget about it. This is achieved in different ways depending on the type of investment project, the volume of assets, and the investor’s temperament.

Some investors prefer to act cautiously, others like to take risks, and others delegate project management to professional managers. But it doesn’t matter which method you choose - you need to soberly assess your own strengths and the potential of the investment project.

Basic principles of investment management:

• income maximization;
• minimizing risks.

Investment management is carried out by both private investors and large commercial corporations. Even government agencies do this by investing in entire sectors of the economy. Sometimes federal authorities encourage private investment in a particular problem sector.

Example

The state strongly encourages investment in agriculture and even helps manage it. Thus, investors are provided with preferential lending conditions: interest on loans is paid from the state budget, entrepreneurs return only the body of the deposit to the banks.

Thus, the agricultural sector in the country is developing, and businessmen themselves receive more benefits from their investments.

Project management is a sequence of precise decisions that a responsible person makes on the way to achieving a goal.

In the process of investment management, the investor:

• assesses market prospects;
• chooses the direction of investment;
• forms an investment portfolio;
• develops an investment management plan;
• predicts the development of the project;
• implements the project;
• monitors results and adjusts the process as needed.

Investment activity has its own unshakable rules. When managing the process, the investor must take into account the dynamics of profitability, payback and implementation periods, and the current cost of the project.

With proper management, the project satisfies the following conditions:

• investment income exceeds the return on bank deposits;
• the profitability of the project is higher than the inflation rate;
• the level of risk is determined in advance;
• investments have maximum liquidity;
• the tasks of all participants in the process are clearly defined.

A qualified investment manager is an economics specialist, an expert in technical analysis and mathematical modeling, and an expert in the legislative and tax spheres.

This does not mean that private investors should not take on new promising projects. Ordinary citizens have a great chance of success if they follow the basic rules of investing. For example, they do not take risks without a preliminary analysis of the situation or do not invest money in a direction they do not understand.

The problem is that residents of the Russian Federation and neighboring countries have problems with financial literacy. Most people cannot even spend their salary rationally and do not think at all about how to make their money earn new money.

Long-term investments seem unreliable and difficult to the average citizen. But once you start, once-vague and frightening concepts become clear and simple.

Conclusion: don't be afraid to invest. Even if you make mistakes in your first projects, this will give you invaluable experience that will definitely come in handy in the future. And one more piece of advice: don’t look for easy ways.

If someone says or writes: “right now invest money in shares of Google (or Gazprom, or the Uryupinsk meat processing plant)” - do not take their word for it. Forecasts and specific advice in the investment business are unreliable things.

You will find even more information about profitable investments in the articles “Investments in fixed assets” and “Real investments”.

Basic Investment Tips

Quick reactions, not being affected by emotions and a high level of intuition help in successful investing, but there are also a few basic rules that can help investors:

• read literature and blogs about investments;
• allocate more than half of all funds to conservative investments and use different investment instruments;
• study the mechanics of securities;
• engage experienced experts to conduct investment analysis or use the services of brokers.

To properly manage investments, you need to calculate the payback period and profitability before making a decision on an investment. At the same time, it is better to monitor the state of affairs regularly, until you return the money invested.

What strategies are used in investment portfolio management - 3 main strategies

Investment strategy is synonymous with risk management. You develop a specific sequence of actions that leads to achieving the goal. A strategy is an implementation scenario that takes into account, if possible, all factors influencing the final result.

You need to clearly understand what risks you are willing to take. Warren Buffett, one of the most successful investors in history, said: “If you can't watch the market drop 50% before your eyes, then you shouldn't be investing.” Alternatively, choose the most conservative portfolio management strategy.

If you don’t yet know what an investment portfolio is, read the material on this topic.

If you already know, let's move on to specific strategies.

Strategy 1. Conservative

This strategy assumes a minimal risk of losing investments, but also a relatively low amount of income (no more than 20% per annum). In relation to stock exchange transactions, this is, for example, the purchase of bonds with a fixed price.

Other options for conservative deposits are investments in gold, impersonal metal accounts, investments in real estate, mutual funds with conservative policies, deposits, insurance savings programs, deposits in investment coins.

Advanced investors combine conservative investments with high-risk ones.

Example

The investor places 25% of his assets in government bonds, 25% in a foreign currency deposit, and distributes the rest of the money between shares of “blue chips” and developing promising enterprises.

Completely conservative investments guarantee almost 100% capital safety, but the return does not always exceed the rate of inflation. In this case, the profit margin is usually known in advance. Overhead costs are minimal, turnover is low, payback periods are long.

A passive conservative strategy is suitable for those investors who do not want to take risks and do not have time for active actions. Managing such investments is easy and simple: “bought and forgotten until you receive dividends.”

Strategy 2. Moderate

They are characterized by an average level of risks and returns (up to 50% per year). Such indicators are for shares of large companies, investments in production, promising startups and other areas that require active participation and economic knowledge from investors.

Moderate deposits are: mutual funds of mixed investments, PAMM accounts, investments in securities of non-state companies, investments in microfinance organizations.

This also includes a relatively new product on the financial market - an individual investment account (IIA). Only individuals in brokerage firms and management companies have the right to open such a deposit. For investments up to 400,000 rubles, the state provides tax benefits. Annual income averages 18-30%.

Strategy 3. Aggressive

Aggressive strategy is a risky game for people with nerves of steel and decent financial assets. These include financial pyramids, untested technologies, the latest market trends with uncertain prospects, and startups.

The volatility of such instruments is maximum. You can either lose everything or increase your initial capital by 100-1000%.

The table shows the main investment instruments corresponding to the strategies:

Control system

Effective management requires a well-functioning system. A system is an integral structure of all elements involved in one process.

An investment project management system is an organized structure of ways and methods for achieving investment goals.

Next, we will consider several existing approaches to project management, namely:

• functional (planning, analysis, control, regulation and stimulation of activities, organization of all production and financial processes, control over their execution)
• dynamic (adjustment of management decisions made over all processes for project implementation in the moment “here and now”)
• substantive (management is carried out not over all current processes at the same time, but separately over each one. Particular attention is paid to the production segment, financial, advertising, etc.).

How to manage investments - 7 main steps

Obviously, investing your own 100,000 rubles and managing millions of assets of a large company is not the same thing. However, the general rules of investment management are valid for both private and corporate investors.

In both cases, you need to be able to calculate risks, see 10 steps ahead, navigate the current economic situation, use current technological developments and follow the principles of reasonable expediency.

The most difficult thing is to manage real investments, since in such a situation money is invested in “live” production processes or, for example, construction. Only professionals can calculate all working capital costs and estimate the size of future profits.

For this reason, company managers often invite outside specialists from consulting firms to manage large investment projects.

In general, the investment management process is as follows.

Stage 1. Analysis of investments in the previous period

It is assumed that the investor is no longer a beginner in the business of profitable investments. He evaluates the effectiveness of his past investment projects, analyzes mistakes and identifies strengths.

A private investor draws approximately the following conclusions:

“Yeah, last time I somehow succeeded with bonds, but futures and options are clearly not my thing, it’s better not to mess with them. It’s better to pay attention to the shares of domestic giants - they are steadily going up this season.”

It is more difficult with large investment projects. It is necessary to conduct a detailed analysis of market conditions, estimate the total volume of the company’s working capital, and study the main forms of investment that were used previously.

Portfolio investments of large enterprises require a professional risk assessment in all areas. Next, excessively risky instruments are excluded and the liquidity of those that remain in the stock is assessed.

Stage 2. Determining the total investment volume in the upcoming period

We calculate the amount of funds required for upcoming capital investments. If you need additional sources, take care of this in advance. Please note that the profitability indicator in this case should exceed the interest rate on loans with a margin.

Stage 3. Determination of investment forms

The choice of investment form depends on the strategy, as well as the investor’s current and long-term goals.

There are many ways to implement investments. This includes the purchase of a controlling stake, investments in the authorized capital of joint ventures, expansion of existing production, and opening of a branch.

For private investors with small capital, there are also plenty of options - management companies, brokerage accounts, reliable mutual funds and PAMM accounts.

Stage 4. Development and evaluation of investment projects

The investment project must meet the long-term goals of the company and, if possible, solve current financial and production problems.

The development of a serious project should be entrusted to professional managers. They will assess the liquidity and profitability of investments, calculate possible risks, and carry out competent diversification - that is, distribute funds among different instruments.

Stage 5. Formation of an investment program

An investment program is a detailed plan for upcoming financial activities. Large financial projects are impossible without the distribution of responsibilities: managers, executors, financial consultants responsible for the legal part are appointed.

Stage 6. Implementation of projects and programs

At the stage of implementing a project, difficulties often arise. Successfully overcoming them is the task of specific performers. Large projects require competent control and accounting at all stages of implementation.

A private investor is his own director and executive. He has no one to blame if he fails. Therefore, you need to monitor implementation and monitor intermediate results carefully and soberly.

Stage 7. Monitoring program execution

Within the enterprise, control of investment projects is assigned to immediate managers.

The life cycle of investments varies from several months to several years. Making timely corrections, withdrawing assets and enjoying triumph is an art that is learned mainly through practice.

Content

• Financial management in the field of investments
• Why investment management is a profitable business
• We manage investments on a short- and long-term basis
• Differences in financial and real investment management
• Portfolio and direct investment management
• How to properly control passive and active investments
• Funds from private investors and enterprises
• Efficiency of using equity capital and borrowed funds
• The basics of investment management
• Objectives of investment management
• Which strategy to choose
• Investment Management Stages
• What does investment risk management include?
• Monitoring of invested funds
• We invest effectively
• What does an investment fund do?
• What an investor should be able to do
• What do intermediaries do?
• Tips for investors

Where to get help in managing the financial investments of an enterprise - review of the TOP 3 companies

The participation of a professional partner reduces investment risks and increases profits.

Experts from HeatherBeaver magazine chose the 3 most reliable and promising companies for investors. They will take care of both the selection of investment instruments and the management of deposits if you order such a service.

1) Opening Broker

The company has been operating in the financial market since 1995. The total number of broker clients is 95,000. In 2021, the total volume of client transactions on the Moscow Exchange amounted to 14.5 trillion rubles. Otkritie Broker is the leader in the growth of new clients based on the results of 2016. The company has been repeatedly awarded professional prizes and diplomas.

Users have access to: investments in their own business through an affiliate program with stock market leaders, deposits in foreign exchange products, opening a brokerage account and individual investment account, assistance in forming an investment portfolio, training in the basics of profitable investing.

2) ZERICH Capital Management

Year of foundation – 1995. Monthly turnover – 600 billion rubles. Reliability rating from the National Rating Agency - AA. A network of branches in the largest cities of Russia. Only professional employees and consultants.

Services on the stock exchange and stock markets of the world, brokerage and depository activities, assistance in financial and investment management. The company's clients have access to investments in securities, earnings from fluctuations in oil and gasoline prices, and other promising instruments.

ZERICH Capital accepts assets of private citizens and corporate funds for trust management. Income from the Russian Stocks strategy is 46% per annum.

3) BCS

The BCS management company provides a wide range of financial services to private and institutional clients. The main line of business is professional asset management. The organization has been operating since 2000, has an AAA rating (maximum reliability), 12,000 investors, 50 offices throughout Russia.

The company's mission is long-term and reliable investment solutions for each user. The list of tools for multiplying capital includes mutual funds, investments in profitable areas of the economy, and personal trust management strategies. The assets are managed by a professional team of financiers with many years of experience in the capital markets.

Management companies

These participants conduct regular market analysis, identifying free niches or more liquid investment instruments. The advantage of cooperation is a professional approach; A novice investor is an ordinary person who can analyze the features and key areas of development, but still makes decisions about investing in a particular company, market or cryptocurrency intuitively.

And all due to lack of experience. Cooperation is a good option for legal entities to start investing, especially when it comes to developing several areas at the same time: venture funds, purchasing shares of other companies. In fact, this is a personal financial advisor with the right to manage a portfolio.

Broker "Otkritie"

The company was able to successfully establish itself in the market and today is a leader in the ratings of stock brokers Financial One. The advantage of working with her is a wide range of points of contact:

• Already developed packages for attachments;
• Competent analytics;
• Always relevant ideas of the domestic and world market;
• Detailed management of the client's investment portfolio.

Of course, no one canceled confidentiality. An excellent option for those who want and have the opportunity to invest, but do not have the time to monitor the market and constantly control the situation in every aspect.

Zerich

The company, operating in the domestic and international segments, is among the top 5 on the Moscow Exchange, and carries out trust management with varying portfolio sizes. This tactic is extremely beneficial for the investor, because he does not need to delve into the intricacies of the process, but at the same time he is convinced of the professional approach to investing in stock markets and minimizing risks.

Another important point is that an investor does not have to learn the intricacies of trading. I will say this: the presence of a documentary legislative base on the site is definitely captivating, which is especially important for beginners. The cost of services is adequate.

BKS

When considering the question of who else to delegate management and entrust investments to, you can look at the range of services of the BCS financial group. Plus, we have our own banks and brokerage companies. Together with the “Personal Financier” package, you can draw up documents for trust services, having previously studied the proposed current investment solutions. The broker's leading position in terms of turnover, as well as individual work with clients, attract a fairly large number of potential investors. The peculiarity of cooperation is that BCS works closely with legal entities and can boast of the largest number of them in the stock market.

The amount of financial profit and its regularity directly depends on how you decide to manage your capital. By making our own decisions about the appropriate strategy or form of investment management, we are responsible for the outcome. But it makes more sense, in my opinion, to cooperate with people with a successful financial reputation and give part of the investment portfolio to management, at least because you do not need to study the peculiarities of the market or monitor changes in the market situation. It is positive that independent brokers or management companies choose a strategy taking into account your preferences: invest in production, securities or gold. You can learn in detail about how to make money on the yellow metal in my blog. I like the position of many successful people who do not want to control everything in their lives, but want to share their experience and learn from the experience of people who have achieved something in other areas. Investment management can be called one of these.

Author Ganesa K.

A professional investor with 5 years of experience working with various financial instruments, runs his own blog and advises investors. Own effective methods and information support for investments.

How to Succeed in Investment Management – ​​4 Helpful Tips for Beginner Investors

Competent investment management requires a cool head, a warm heart and quick reactions. An ordinary investor does not have to be a financier - engineers, teachers, and former military personnel also successfully manage investments.

To start investing, basic knowledge is enough. Understand financial instruments, read blogs and studies by practicing investors (the same Warren Buffett or Kiyosaki), study the principles of the stock exchange and securities.

Active strategies are not suitable for overly emotional people who tend to make impulsive decisions. I’m not talking about women now, but in general about everyone who reacts too violently to events. If you are one of this type of people, choose extremely conservative investment instruments - bonds, deposits, precious metals.

And some more useful tips.

Tip 1. Involve independent experts to analyze projects

I have already spoken about this, but I will not be lazy to repeat it - the participation of professional analysts and experts increases the chances of success of an investment project. It’s difficult to say by what percentage, because it all depends on the volume and type of investment.

Experts will see risks that you haven’t even thought about and will calculate not the desired, but the objective income from financial transactions.

Tip 2. Focus most of your investments on conservative risks

For professional investors, the basic share of the investment portfolio is represented by conservative instruments. This is a kind of safety net that will save your investment if all other tools fail.

Tip 3. Use different investment tools

Diversification is the main rule of a successful investor. Beginners often ignore this point, looking for, in their opinion, “ideal” directions and fully investing their assets in them.

I think everyone knows what happens when all your eggs are in one basket, and that basket suddenly falls.

Tip 4. Use the services of investment brokers

A broker is your pilot in the stormy sea of ​​finance. Even large investors act through professional brokers. If you are a beginner in the investment business, you definitely can’t do without a guide. For information on how to choose a broker, read the article “Investing in shares.”

Watch an entertaining video on the topic of investment management.

Financial management in the field of investments

The goal of every commercial enterprise and the activity of any individual is to generate profit for their own needs. To make money, you first need to invest your own money in some business and then expect capital growth. This process is investing.

The investment process is the process of obtaining money from the initial capital. You are an investor if you have opened a bank account or invested company capital in the stock market. Areas of investment can be very different: it all depends on the starting capital and the desires of the owner of the funds.

To get the highest possible results, you need to manage your own money correctly. At the enterprise level, this is handled by financial management represented by a manager or competent specialists.

The chosen approach to investing capital is a responsible process that can bring high profitability or make the company bankrupt. To avoid the latter, financial investment management has become a separate area of ​​business, requiring extensive knowledge and at the same time developed intuition.