What is the purpose of an investment management agreement in the investment process?

The purpose of an investment management agreement in the investment process is to provide an agreement between the investor and the investment manager. This agreement outlines the roles and responsibilities of the parties involved in the investment process, and sets out the specific terms of the services that the investment manager provides. In addition to outlining the roles and responsibilities of the parties in the agreement, the investment management agreement also sets out the type of investments that can be made and the fees that the investor and the investment manager will receive. It also outlines any other conditions or requirements that the parties might have in connection with the investment process. The agreement serves to provide clarity and certainty for both the investor and the investment manager, and to protect both parties from any potential risk associated with their investment. It sets out the responsibilities of the investment manager so that any potential conflict of interest between the investor and the investment manager can be avoided. The agreement outlines how the investment manager and the investor can handle any disputes that may arise in the course of their investment transaction. Finally, the agreement creates a legally binding relationship between the investor and the investment manager. This agreement ensures that both parties are held to certain standards and expectations regarding the quality of investment services they provide. It also provides a mechanism for resolving any potential disputes between the investment manager and the investor.

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What is the purpose of an investment management agreement in the investment process?

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