Investment Management Company Duties

C

The major duties of an investment management company are investment research and portfolio management, handling of redemptions and dividends and issuing securities.

The major duties of an investment management company include:

I. Handling of redemptions and dividends: This duty involves managing the process of redemptions, which is the withdrawal of funds by investors from their investment accounts, and dividends, which are distributions of profits or income earned by the investments. Investment management companies typically handle these transactions by ensuring proper documentation, processing the necessary paperwork, and disbursing the funds to investors.

II. Investment research and portfolio management: This duty is central to the role of an investment management company. It involves conducting thorough investment research to identify potential investment opportunities and risks. This research includes analyzing financial statements, economic trends, industry outlooks, and other relevant factors. Based on the research, investment management companies develop investment strategies and construct portfolios tailored to the objectives and risk tolerance of their clients. They also monitor the performance of the investments, make necessary adjustments, and rebalance the portfolios periodically.

III. Recommending stocks and bonds to investors: Investment management companies play a crucial role in providing investment recommendations to their clients. This involves analyzing various investment options, such as stocks, bonds, mutual funds, and other securities. Based on their research and analysis, investment management companies make recommendations to clients regarding the suitable investment opportunities that align with their investment objectives, risk profile, and time horizon.

IV. Arranging bank loans for fund investors: This duty is not typically associated with investment management companies. Instead, it is more commonly related to investment banks or commercial banks. Investment management companies are responsible for managing investment portfolios and making investment decisions, rather than facilitating bank loans for fund investors.

Therefore, the correct answer is:

C. I & II

The major duties of an investment management company include handling redemptions and dividends (I) as well as investment research and portfolio management (II). They do not generally engage in recommending stocks and bonds to investors (III) or arranging bank loans for fund investors (IV).