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Money management is often handled by investment management companies on behalf of an individual or corporation. Most investment management firms will encourage their clients to maintain a diverse portfolio of investments. A diverse portfolio is designed to increase the potential for profit but also minimize risk if the investment chosen by the management company proves to be a poor choice. Investment management can take the form of security purchases and investments, stocks, or bonds made on behalf of the portfolio manager. An investment management company will usually work with a client to determine the best investment choices. An investment management company should be knowledgeable about money management and investors' portfolios.
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