What are the key objectives of investment management?

The key objectives of investment management encompass a strategic approach to growing and safeguarding capital while generating income. Capital preservation is crucial as it ensures that the initial investment remains secure, which is particularly important for risk-averse investors. Income generation involves creating a steady stream of cash flow from investments, often through interest, dividends, or rental income, which can be essential for meeting current financial needs or funding future expenditures.

Capital appreciation refers to the increase in the value of an investment over time. This objective aligns with the long-term growth aspirations of many investors, looking to build wealth through the appreciation of their assets. Together, these three objectives—capital preservation, income generation, and capital appreciation—form a comprehensive framework that aligns with the financial goals and risk tolerance of various investors.

The other options, while they contain elements relevant to investing, do not encapsulate the broader goals of investment management. For instance, maximizing leverage and minimizing volatility focuses excessively on risk management techniques rather than the fundamental objectives of preserving and growing capital. Buying low and selling high is a common strategy but does not represent a comprehensive objective of investment management as it relies on market conditions rather than the underlying principles of portfolio management. Lastly, market timing and speculation can lead to increased risks and do not contribute