FUNDS MANAGEMENT AND INVESTMENT

The book entitled Funds Management and Investment is a must read. Organizations as well as individuals should know about funds management and investment.It is important to note that one of the sources of cashflow to an organization is cashflow from investing .The others are cashflows from operation and financing activities. Funds management is the management of the cashflow of a financial institution. The funds manager ensures that the maturity schedules of the deposits coincide with the demand for loans. To do this, the manager looks at both the liabilities and the assets that influence the bank's ability to issue credit. Funds management is also described as asset management and it covers any kind of system that maintains the value of an entity. It may be applied to both intangible assets like intellectual property, goodwill and financial assets, or human capital, and tangible assets, such as real estate. It is the systematic process of operating, deploying, maintaining, disposing and upgrading assets in the most cost-efficient and profit-yielding way possible. We further discussed investment trust. An investment trust is a form of collective investment found mostly in the United Kingdom. Investment trusts are closed-end funds and are constituted as public limited companies. In many respects, the investment trust was the progenitor of the investment company in the U.S. We discussed  index fund. Daily Worth(2017) posits that an index fund is a kind of mutual fund that is designed to match the performance of an index, such as the S&P 500, Dow Jones. Rather than making active stock picks, these funds are “passive.” In other words, instead of a portfolio manager trying to select the most attractive stocks for a fund, index funds are run by an algorithm with virtually no human input.We dwelt on investment objectives. Key to successful long term investment management is the setting of appropriate portfolio objectives and a clear understanding of acceptable risk. Income portfolios invest principally in income-generating assets such as fixed income securities, equities, property and cash.The options for investing savings are continually increasing, yet every investment vehicle can be easily categorized according to three fundamental characteristics: safety, income and growth.We examined investment strategy. In finance, an investment strategy is a set of rules, behaviors or procedures, designed to guide an investor's selection of an investment portfolio. Individuals have different profit objectives, and their individual skills make different tactics and strategies appropriate. Some choices involve a tradeoff between risk and return. Most investors fall somewhere in between, accepting some risk for the expectation of higher returns. We further discussed investment management. Investment management is the professional management of various securities (shares, bonds and others) and assets (real estate) to meet specified investment goals for the benefit of investors. The investors may be institutions (insurance companies, pension funds, corporations etc) or private investors (both directly via investment contract and more commonly via collective schemes eg mutual funds or exchange traded funds).We also dwelt on managed funds. Investment management is the professional management of various securities (shares, bonds and others) and assets (real estate) to meet specified investment goals for the benefit of investors. The investors may be institutions (insurance companies, pension funds, corporations etc) or private investors (both directly via investment contract and more commonly via collective schemes eg mutual funds or exchange traded funds).We discussed fundamentals of investment funds. Investors usually want to achieve a reasonable return on their investments . Wealth maximization is what the investors want to achieve regarding shares on the floor of an exchange. The objectives of the investors are captured in such areas as safety, growth and income. Key to successful long term investment management is the setting of appropriate portfolio objectives and a clear understanding of acceptable risk. Other things we discussed are collective investment schemes, investment in money market, investment in stocks and secured investment options in recessional period.