An Analysis of Asset Allocation and Investment Management

Asset allocation arrives at a conclusion on, what part of a portfolio of investment should be placed, and in which part of the class of broad assets (e.g. liquid cash, equities, or fixed interest securities). Investment management is the field of study, where various investors pool their investments and manage them. The main aim of this research is to analyze any scope of difference between theoretical and the practical allocation of assets in this type of Industry. Researching the asset allocation theory and applying it in co-dependently can help to find several ways in the improvement of both. This research also identifies the gaps in theoretical and the practical aspect-and come up with some methods that may lead to overcoming these gaps. Authors have also tried to show the in-depth details of allocation of assets as well as investment management, to realize client's needs and wants as per the current market scenario, and how a client's portfolio can be defined and managed, and, which of variables a portfolio manager should consider designing a portfolio. The current research utilizes the set of both quantitative and qualitative data for examining the level of awareness among customers and practical use of theories of asset allocation, and the theoretical methods by the professional industrialists.