Asset Management, Asset Manager

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Asset management involves making informed decisions in order to maximize returns from the assets in a portfolio. This helps investors to achieve their financial profitability and investment targets, taking into consideration the available resources.

Initially the concept of asset management was limited to the stock markets of the US and the UK. The process has evolved into a major industry and has become the driving force for the economies of several nations.

Asset management may include:


Asset management involves making informed decisions in order to maximize returns from the assets in a portfolio. This helps investors to achieve their financial profitability and investment targets, taking into consideration the available resources.

Initially the concept of asset management was limited to the stock markets of the US and the UK. The process has evolved into a major industry and has become the driving force for the economies of several nations.

Asset management may include:

  • Asset allocation
  • Determining the growth potential of assets
  • Devising an investment plan
  • Timing returns

Steps Involved in Asset Management

Asset management involves the following steps:

  • Understand individual investment needs and funds at hand. This would help in devising strategies and selecting viable investment options.

 

  • Allocation of assets. There are four main types of assets, namely stocks, bonds, real estate and commodities. Other asset types include cash and equivalents, funds and alternative investments. Every asset class represents specific growth potential and risk factors. Hence, each class will deliver varying results. An understanding of each asset class is essential to making informed decisions.

 

  • Devising an investment plan. Analyze financial trends over the past few months. It helps to estimate potential growth in assets and underline the future course of action. Devise an investment growth plan to increase profitability by strengthening the asset value.

 

  • Timing returns from assets. Cash flow management is a crucial part of asset management. It is possible to time returns effectively through the intelligent selection of short- and long-term financial assets.

Asset Manager

High-profile individuals or organizations, such as insurance companies, state or private corporations and pension funds, can hire the services of private entities called asset managers or investment advisors to handle their investment portfolio. With specialist knowledge in financial analysis and investment advisory, an asset manager helps in making informed investment decisions and realizing substantial returns.

Asset managers usually work in a group to manage the financial portfolio of a client. Although an asset manager cannot guarantee returns, s/he can safeguard against possible risks and frauds. Several companies offer asset management services in exchange for fees. One can find a proficient asset manager on the Internet. However, the experience and credibility of an asset manager must be considered before hiring their services.

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