Investment and Portfolio Management in Relationship with Society!!!

Does Investment and Portfolio Management have a relationship with the society?

From my point of view, this subject is in direct relation with the society for its betterment. Now the question arises is How & what benefits does an individual can get from this subject?

To investigate this question there is need to understand the core values of this subject? It primarily relates to Investing and managing investments.

Investment is to put money into something to earn profit which is associated with risk.

Money should not be put idol, it should be invested somewhere either in business, or in the shape of stock, bonds etc. The prime focus of this subject is to put some light on the Investment banking, which adds to society primarily by providing valuable intermediation services. They actually linked individuals within the society and provided them capital to those who need it. This particular system allows people to invest their money directly or indirectly and along with that helps companies, government and individual to raise funds by bond selling, security sales and issuing of IPO. Investments in stocks are meant to be direct investments, individuals invest directly whereas indirect investments are in Mutual funds where asset management companies provide and develop different portfolios and manage them for their investors. This facilitates and encourages those people who are Risk inverse.

I have a strong feeling that investment is one of the rare subjects that one individual person as a whole  or as a part of an organization can be of  immense value in increasing the wealth of an individual or the wealth of corporation or an organization in which you may be associated with.

Economies those wants growing financial status requires the services of an Investment consultants or more specifically Investment bankers which play a vital role to boost the economy of the commercial sections of the society. In other words, they create more opportunities for both the employed and unemployed individuals to raise capital and make a profit. Both can invest in stock or bond or contact an asset manager who can guide him and he could earn dividend or capital gain as a plus to their regular income. Investment bankers are an essential part of any society and make society more efficient. They provide money for businesses to grow through debt and equity capital markets.

My personal experience regarding investment i want to mention here. In July 2011, an IPO of a company was issued at PKR. 25. At that time, one of my friends was doing internship in a brokerage firm. Implementing the in-depth knowledge of this subject along with the guidance from his seniors carefully analyzed the company and come up with the results that this company could be a blue chip for future. So he purchased 20,000 shares by invested PKR 5, 00,000. With the passage of time the price of the share kept on increasing and reached the highest level of PKR 80 per share.  Again using the analysis and technical aspects of the stock market, he concluded that now it’s time to get out of the market, and he sold all the shares getting a capital gain of PKR 16, 00,000.  Earning this many amounts in short period of 10 months is not an easy task. If he had not invested that money than probability is that he might have the same amount of money saved i.e. PKR 5,00,000 and in a country with inflation in double figures most probably his buying power could have been dropped down.

From the above real life example, come up with result that how he utilized his knowledge and increased his wealth. Although he had studied this particular subject but it doesn’t mean that people who don’t have this knowledge cannot benefit from it. Investment consultants are there to help the individual of the society to generate income. So what we concluded is that Investment & Portfolio Management provides an open plat form to everyone, even people with low level of incomes, job holders, students, and retired individuals can also become a shareholder of a company. It provides opportunities to the every individual of the society. People can secure their future by investing in retirement plans. It creates employment, profit generating opportunities, business, healthy returns, development of economy and all this leads to development of Society.

“What is necessary to change a person is to change his awareness of himself.”