INVESTMENT MANAGEMENT
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Retail Banking and Wealth Management — JAIIB.
One-liners from this chapter
Free sample — 8 of 65 rapid-fire Q&A cards.
What is investment management in the context of wealth management?
Investment management refers to the professional management of various securities and assets to meet specified investment goals for the benefit of investors, encompassing portfolio construction, monitoring, and review.
What is the difference between active and passive investment management?
Active seeks to beat the market; passive tracks an index.
What is the primary objective of an investment portfolio?
The primary objective is to achieve the best possible risk-adjusted return by balancing capital appreciation, income generation, and capital preservation based on the investor's goals and risk tolerance.
What is a Systematic Transfer Plan (STP) in mutual funds?
Periodically transfers fixed amount from one fund to another.
What is the difference between systematic risk and unsystematic risk?
Systematic risk (market risk) affects the entire market and cannot be diversified away, while unsystematic risk is specific to a company or industry and can be reduced through diversification.
What is the concept of rebalancing in an investment portfolio?
Restoring original asset allocation by buying or selling assets.
What does the term 'asset allocation' mean in investment management?
Asset allocation is the process of dividing an investment portfolio among different asset categories such as equities, debt, gold, and real estate to balance risk and reward according to the investor's profile.
What is the difference between market risk and credit risk?
Market risk is price volatility; credit risk is default by borrower.
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