Asset Management

"The management of someone's money, stocks, shares, etc."

What is Asset Management?

The management of a company's or organization's money or property, in order to make as much profit as possible.

Asset Management (AM) is a systematic process of maintaining, operating, upgrading and disposing of assets in the most cost-effective way possible, including risks.

It is frequently utilized in the financial services industry and it is permitted through professional investors who manage a person’s or company’s assets according to pre-determined objectives and investment styles. Private banking, wealth management, collective investment schemes, even pension funds are the ways that people manage their assets.

In finance, asset management describes managing money on clients’ behalf. The financial institutions managing the money are called asset managers, and they develop and execute investment strategies that create value for their clients. Broadly, this process involves “putting money to work” by buying, holding, and selling financial assets with the potential to achieve a client’s investment goals. Examples of financial assets include stocks, bonds, commodities, shares in private funds, and more.

The role of asset management

The asset manager's role is to determine what investments to make, or avoid, to realize the client's financial goals within the limits of the client's risk tolerance. The investments may include stocks, bonds, real estate, commodities, alternative investments, and mutual funds, among the better-known choices.