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Asset Management Finance Definition & Examples

Asset Management Finance Definition & Examples

Asset management is defined as the active administration, supervision and management of client investments and accounts. Investment banks or finance asset managers are typically those that manage client investment accounts to ensure that they perform as desired and incur minimal risk. The account managers or brokers invest the money on behalf of their clients to work towards the goals of the clients, or the fund that they represent and manage. This is a service that is typically reserved for the higher-net worth clients, businesses, and even some governments. Products and strategies employed may include real estate, agricultural investments, international currency investments, and others.

So What Is Finance Management?

It is the practice of managing portfolios, investments, accounts or other financial interests for clients including businesses, associations, nongovernmental agencies, and high-net worth individuals. The desired outcome is to create financial gains and wealth for customers through the generation of cash in the short term or to provide for long term gains for investments through asset management finance. Risk is balanced and determined as desired by the client depending on their long term and short term goals. Finance asset management is a strategic initiative for all the portfolios of individuals and other entities. read more about finance management http://knowhownonprofit.org/organisation/operations/financial-management/management

Asset Management Finance Definition & Examples

Financial Planning’s Roll

Before asset management finance initiatives can be taken, it is essential that the brokerage or investment manager understand the long term and short term goals of their clients. Clients with an eye on the future for their investments, such as for retirement, need different strategies and financial tools utilized to meet their goals; while other priorities may require short term, higher risk ventures. A balanced portfolio that balances both the short term and long term goals is essential for continued financial stability in today’s ever changing global financial market.

Asset management finance practices work to create opportunities for investments for individuals, governments and businesses across the globe. Investments strategies may be designed for the short term or for the long term as part of an overall financial portfolio. A wide array of investment strategies and structures are available to achieve the desired goal through the balance of risk in investments, especially for those that are risk-adverse. Asset managers must have a global understanding of investments and the markets to ensure the best results for their clients. They also need to have an understanding of the proper valuation and potential for investments the recommend.

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