Management asset is also sometimes referred as investment management and fund management. So an asset manager is the one who manages private investor’s fund and specializes in advisory provision to management of assets. In the present day business environment with diverse factors affecting investment returns, the role of investment advisor has enhanced many folds. This advisory service involves various asset classes ranging from cash, real estate, bonds, share to options and derivatives.
In order to management assets efficient and effectively, the asset manager makes portfolio investments and takes care of a lot of funds all over the world. They also have some excellent management asset ideas, techniques and concepts. Asset managers by virtue of their proven track record of successfully earning returns over long periods of time, possess good forecasting techniques to gauge the returns of future investments. They also have good risk management techniques that help they to meddle through bad times in the market. According to Warren Buffet, management asset is governed by two rules: rule no. 1 don't lose money and rule no. 2 don’t forget rule no. 1.
Management asset can be a team of individuals having diverse skills who can guide you with good advice, which is always good as a single person cannot be true every time but a group of good professionals can always pull of some good performance as these asset price fluctuate and various macro factors are affecting them so we should get as much advice as much it is possible. For example, foreign exchange fluctuations can cause a lot of problems and can cause loss so they can manage it better in such a way that we can use various techniques to avoid them such as forward contract.
The main thing management asset includes is to develop an investment policy after having done background researches on the client. This includes the financial needs of the client, their risk appetite and their investment span. Young people are ambitious they need high return so risky assets can be considered, where as old people are generally in gifting stage and need a continuous returns so their money can be invested more in fixed income assets.
Talking about strategies, the role of management assets have increased in the past sometime.
So we need to understand the role of each investment class since the 2008 financial crisis when events such as Lehman Brothers have caused more complexities and since then investors having seen a real though times. The trading volumes have decreased significantly. So for now as an asset manager one should advise his clients to stay away from overvalued currencies such as Euro and invest in treasures and safe heavens such as the Dollar.
But having said that, the investment manager will also see opportunity in equities as they are very cheap these days and good valuations will show us promising opportunities. Similarly if we see good opportunity in cheap property these days as distress owner will sell a good property why not investment some money work on its maintaince and sell it for profit.
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