Investment management refers to the handling of financial assets and other investments—not only buying and selling them. Management includes devising a short- or long-term strategy for acquiring and disposing of portfolio holdings. It can also include banking, budgeting, and tax services and duties, as well. The term most often refers to managing the holdings within an investment portfolio, and the trading of them to achieve a specific investment objective. Investment management is also known as money management, portfolio management, or wealth management. Though the investment management industry may provide lucrative returns, there are also key problems that come with running such a firm. The revenues of investment management firms are directly linked to the market's behavior. This direct connection means that the company's profits depend on market valuations. A major decline in asset prices can cause a decline in the firm's revenue, especially if the price reduction is great compared to the ongoing and steady company costs of operation. Also, clients may be impatient during hard times and bear markets, and even above-average fund performance may not be able to sustain a client's portfolio. Courtesy - Investopedia