Asset Management

Reviewed by Bhavana | Updated on Aug 27, 2020

Introduction

The asset manager refers to an individual who takes care of investment management. The individual from the financial services industry sector manages investment funds and customer account segregation. Asset management is part of a financial firm that hires professionals who manage money and control client portfolios.

From studying the assets of the client to planning and managing the investments, the asset managers take care of everything, and recommendations are made based on each client's financial health.

Asset management is the strategy of a financial services firm, typically an investment bank, or an entity, for all or part of a client's portfolio. Institutions provide investment services along with a wide range of conventional and alternative product offerings that a normal investor cannot access.

In essence, the process of asset management has a dual mandate-appreciation of the assets of a client over time while mitigating risk. There are investment minimums, which means that high net worth individuals, government entities, corporations, and financial intermediaries generally have access to this service.

An asset manager's role is to determine what investments will grow the portfolio of a client, or which ones to avoid. Using both macro- and micro-analytical tools, rigorous research is carried out.

It involves statistical analysis of current market patterns, interviews with company officials, and anything else that would help achieve the stated goal of appreciation of client properties.

Understanding Asset Management

The advisor will most commonly invest in products, such as equity, fixed income, property, commodities, alternative investments, and mutual funds. Financial institution accounts often include privileges for check writing, credit cards, debit cards, margin loans, automatic cash balances sweeping into a money market fund, and brokerage services.

Asset management comprises developing, maintaining, upgrading, operating, and disposing of assets in the most efficient as well as cost-effective manner (inclusive of all costs, performance, and risks attributes).