The purpose of writing about the working of investment companies is to give you a better idea of how the industry functions. In another fee variation, firms may charge no upfront transaction fees or commissions but, instead, take higher fees on other products or services, that they split between the advisor and the firm for its asset management services. Load more. Intellectually rigorous with exceptional training and generous starting salaries, investment management is a sought after career route by many a bright graduate. Most investors have heard of mutual funds , but relatively few understand how these funds really work. Some firms only cater to wealthy clients through private accounts, known as individually managed accounts , or hedge funds. Types Investment strategies and funding structures vary by firm.