The professional assets management conducted by individuals for selected persons is considered investment management. The individuals holding the advisor position is mainly considered as the investment managers, who alter the investment for reducing the total risk and raising the level of returns from investment. The investment management relevant evaluates shares, bonds, and other securities in a particular portfolio for generating high level of income from investment. Akimova, Stein and Prokhorova (2015) indicated that investment management is conducted both ways where investors can manage their own funds or higher experienced individuals for managing their funds.
The investment objectives are relevantly set with the implementation of adequate analysis that depicts the requirements of the individual. In addition, the evaluations relevantly help in detecting the investment criteria, where it is classified as individual investors and institutional investors. This classification relevantly helps in setting the adequate level of investment objectives. Moreover, the derivation of the investment objectives mainly helps in balancing returns objectives with the risk tolerance of the individual. The investment objectives is also established by analyst on the basis of personal preference, where the identification process might eventually help in detecting whether the individual is conservative investor, passive investor or high growth investor.
Financial assets are considered as an investment options, which is conducted in tangible liquid assets that directly gets its value from contractual claim. The financial assets can be further subdivided into two sections comprises of primary assets and derivative assets. There are relevant examples of financial assets, which are cash, stocks, bonds, and bank deposits that are used by the investors while creating the portfolio for generating high level of returns from investment. The financial asses such as bonds and stocks are relevantly backed with the performance of the organisation issuing the bonds. However, the main component of the financial assets is the contractual obligations of the individuals issuing the instruments to repay the amount for the contract.
The real assets mainly comprise of tangible elements such as property, which has a physical substance that has its own values in the market. Real assets can be identified as property, precious metals, commodities, agricultural land, machinery, oil and real estate. The price valuation of the above commodity is mainly conducted in market data, where the assets is backed by the substance, which is demanded in the market. The value of real assets is relevantly determined by the demand and supply of the components, where higher demand and low supply results in inflated prices. Chandra (2017) indicated that due to the excessive supply of oil during the period of 2015 the prices of the commodity relevantly fell from the high of $110 to $45 within the time period of one year.
Regulations in the financial market is an essential measure that needs to be taken into consideration by the appropriate regulators for reducing the occurrence of unethical measure conducted by companies and investors. Furthermore, the implementation of the regulation in the financial market ensures that the functions are steered efficiently and effectively. The problems in the financial market was mainly highlighted during the financial crisis of 2008, which relevantly forced the regulators to impose significant regulations. Additionally, the regulators have relevantly allowed the financial market to prevent money laundering and corruption, while increasing the investors protection. There have been relevant regulations such as Dodd–Frank Wall Street Reform, Consumer Protection Act (DFA), European Markets and Infrastructure Regulation (EMIR), Over the Counter (OTC) Derivatives Market, and Markets in Financial Instruments Directive (MiFID). The relevant regulation has mainly allowed the financial markets to regulate the investors and organisation conducting operations in the market.
The financial market regulations are evaluated by UK Listing Authority and London Stock Exchange, which regulates different level of operations by investors and over the period of time. The identified regulations have adequately helped in minimising the occurrence of unethical measures that might hamper operations of the financial market. Gaudard (2015) mentioned that with the use of regulations the interest of investors is protected, as it minimises the occurrence of unethical measure and promote fair trade.
The investment performance can be measured with adequate calculations, which eventually help in understanding the performance of the portfolio. The performance measurement directly allows the investors to understand capability of the portfolio managers for detecting its capability to generate high level of returns from investment. The performance is relevantly evaluated with the help of measuring techniques such as arithmetic average rate of returns, time-weighted rate of return, dollar weighted rate of return and annualised rate of return. The identified techniques used for analysing the investment performance directly allows the investor to detect capability of the portfolio managers in past to accumulate the adequate level of returns from investment. Mauleon and Hamoudi (2017) mentioned that investors use the method for adequately measuring the financial performance of portfolio, which help them make investment decisions. On the other hand, Chen et al. (2017) criticises that created portfolio of the investor can have high level of risk involved with investment, which relevantly hinders investment capital and raises concern for the investors. relevantly reduces the level of income from investment, which can be used for generating high level of returns from investment.
The arithmetic average rate of return relevantly uses average rate of return from investment, which is evaluated within a stipulated period.
The time-weighted rate of return mainly measures the compounded rate of growth, where the initial market value during the period, which helps in sussing the cash distribution in determining the returns of the investment. The method relevantly uses geometric mean method for analysing the risk and return attributes of the investment.
The dollar weighted rate of return is relevantly used for calculating the internal rate of return from investment, which eventually help in detecting the investment performance of the investors. The formula has been used for detecting the investment income that will be conducted for investment, while detecting the total risk of the portfolio.
The annualised rate of return is mainly conducted for detecting the total returns that has been generated during the year. In addition, the annualised returns directly indicates the high level of income that is generated from investment, while detecting the risk involved in investments.
There are different types of investment classes such as equities, commodities and real estate in addition to inflation-linked bonds. The identified investment classes would eventually help investors to generate high level of income from investment, which allow the investors to analyse the investment options. Chisholm et al. (2016) mentioned that investor analyse the investment classes to detect the viable investment options, which can generate high level of income from investments. The equity classes relevantly comprise of stocks, which is analysed by detecting return and risk attributes of the investment. The investors by analysing the risk and return attributes might eventually help in obtaining high level income from investment. The investment in bonds are also conducted by investors for generating high level of income without having risk attributes of investment.
The other investment classes such as commodities and real estate is mainly detected an adequate investment options, which might eventually help raising income from investment. The investment in real estate and commodities relevantly holds low risk attributes, as it backed by the values of the substance, which allow the investors to get adequate returns from investments. DeFusco et al. (2015) indicated that investors evaluate the investment classes, while preparing the portfolio, which help in minimising the risk and maximising returns from investment.
There are two primary types of investment companies known as Closed-end investment companies and Open-end investment companies. In addition, investors are able to conduct adequate investment in the selected companies for adequately increasing their returns, while reducing the risk from investment. the closed end investment companies relevantly issue shares in one-time public offering. These type of companies does not continuously offer new shares, nor does they redeem the share issued like the open-end invest companies. Moreover, the investor after the issue of shares can trade it in the market, as per the demand and supply conditions, which focuses on detecting the price of the instrument. Thus, it could be detected the shares of the company is relevantly sold at premium and par levels of the actual net asset value.
Furthermore, the Open-end investment companies are mainly known as mutual funds, which relevantly issues new shares. The share issued by the companies were relevantly purchased from the investment company, which were sold back to the investment company. Therefore, investors can use adequate mutual fund for adequately purchasing and selling the shares of the investment company. Gross et al. (2016) mentioned that investors use adequate investment option, which can eventually help in generating high level of income from investment.
References
Akimova, E.M., Stein, E.M. and Prokhorova, Y.S., 2015. System analysis in the investment processes management and theoretical principles of the investments assessment. Journal of Advanced Research in Law and Economics, 6(3 (13)), p.472.
Chandra, P., 2017. Investment analysis and portfolio management. McGraw-Hill Education.
Chang, M.H., Sandborn, P., Pecht, M., Yung, W.K. and Wang, W., 2015. A return on investment analysis of applying health monitoring to LED lighting systems. Microelectronics Reliability, 55(3-4), pp.527-537.
Chen, L., Wang, Y., Lai, F. and Feng, F., 2017. An investment analysis for China’s sustainable development based on inverse data envelopment analysis. Journal of cleaner production, 142, pp.1638-1649.
Chisholm, D., Sweeny, K., Sheehan, P., Rasmussen, B., Smit, F., Cuijpers, P. and Saxena, S., 2016. Scaling-up treatment of depression and anxiety: a global return on investment analysis. The Lancet Psychiatry, 3(5), pp.415-424.
DeFusco, R.A., McLeavey, D.W., Pinto, J.E., Anson, M.J. and Runkle, D.E., 2015. Quantitative investment analysis. John Wiley & Sons.
Gaudard, L., 2015. Pumped-storage project: A short to long term investment analysis including climate change. Renewable and Sustainable Energy Reviews, 49, pp.91-99.
Gross, M.V., Erichev, V.A. and Ivanyuk, T.N., 2016. Features of a technique of investment analysis. Modern trends in Economics and mana new look, (38), pp.129-136.
Guillen, J., Cheilari, A., Damalas, D. and Barbas, T., 2016. Oil for fish: an energy return on investment analysis of selected European Union fishing fleets. Journal of Industrial Ecology, 20(1), pp.145-153.
Landau, S., Weisbrod, G., Gosling, G., Williges, C., Pumphrey, M. and Fowler, M., 2015. Passenger Value of Time, Benefit-Cost Analysis, and Airport Capital Investment Decisions. Volume 1: Guidebook for Valuing User Time Savings in Airport Capital Investment Decision Analysis (No. ACRP 03-19).
Mauleón, I. and Hamoudi, H., 2017. Photovoltaic and wind cost decrease estimation: Implications for investment analysis. Energy, 137, pp.1054-1065.
Romich, E., Geiger, M. and Rashford, B.S., 2016. Solar Electric Investment Analysis: Estimating System Production. University of Wyoming Extension.
Essay Writing Service Features
Our Experience
No matter how complex your assignment is, we can find the right professional for your specific task. Contact Essay is an essay writing company that hires only the smartest minds to help you with your projects. Our expertise allows us to provide students with high-quality academic writing, editing & proofreading services.
Free Features
Free revision policy
$10Free bibliography & reference
$8Free title page
$8Free formatting
$8How Our Essay Writing Service Works
First, you will need to complete an order form. It's not difficult but, in case there is anything you find not to be clear, you may always call us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.
Complete the order form
Once we have all the information and instructions that we need, we select the most suitable writer for your assignment. While everything seems to be clear, the writer, who has complete knowledge of the subject, may need clarification from you. It is at that point that you would receive a call or email from us.
Writer’s assignment
As soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.
Completing the order and download