In business companies, finance is a connecting link of all functional fields such as production, personnel and marketing, so financial management is very important for the smooth running of organizational performance. Basic financial operations are investments, which are related to the acquisition of fixed assets; Financing, which is related to raising the necessary funds from various sources; and profit allocations, which are related to taking advantage obtained by the company among fund suppliers.
Regarding investment, assets / projects must be chosen simply by considering their clean return. Regarding financing, it must be ascertained that the company gets the necessary financing at the lowest possible cost. Likewise, about earnings appropriation, it must be seen that sufficient funds are provided for the company's development activities, without interfering with the interest of suppliers. In the company where this operation is planned and correctly controlled, it can be said that there is an efficient investment management. Thus, investment management can be defined as part of managerial activity related to the planning and control of the company's financial resources.
Because every business activity requires investment, investment management is closely related to other management fields. When investment is managed correctly, other areas will also show good performance. Investment management helps in monitoring the spread of effective funds in fixed and working capital. This will, in turn, ensuring works better than the company.
All operations and resources in the business organization are managed with the same broad purpose, i.e., to achieve the company's goals. So every resource or area must be managed in such a way as to contribute to the fulfillment of the company's goals. However, there are specific purposes for each functional area. In terms of investment, the aim is to ensure that the company gets the finances needed at the lowest possible cost, and uses it in a maximum useful way.