A Guide to Asset Management

As a general definition, asset management refers to any system or mechanism which controls and monitors things of value within a group. There are many types of asset management, ranging from a company maintaining its stock in a warehouse to a government making certain its infrastructure (roads, bridges, etc.) are properly maintained. One of the most beneficial areas of this system refers to personal asset management. Let us take a look at some of the basics how this works and some of the benefits managing personal assets can offer.One of the fundamental reasons asset management exists is because that most of us realise that having our money work for us is much easier than having to work harder for our money. This has become especially relevant in the past decade or so; inflation increasing, the cost of living rising and little adjustment for these variables in wages. Asset management is a powerful tool to combat this situation.

Who might an asset manager be appropriate for?

The answer here is nearly everyone. Even the highest net-worth individuals generally have someone else, if not multiple parties, looking after their assets. While all of us have our day-to-day lives, asset managers specialise in pooling one’s resources into the best possible money-making situations with the least amount of risk. As opposed to the individual who may not be so keen on market movements and predicting what will happen next, asset managers base their livelihood on such a science.

Which types of companies choose asset management?

Nearly all successful companies devote a portion of their budget into asset management. They realise that their revenue can be increased by putting it in the right place at the right time. From the largest Fortune 500 corporations down to the start-up entrepreneur, this tool is a welcome addition to any business plan.

What are the benefits?

The main benefit is the ability to place one’s assets, whether they be stocks, bonds or physical valuables into a place that will secure the largest amount of profit over time. Asset managers choose avenues that are not only financially sound but which also are based off of one’s specific desires; for instance long-term growth or short-term fundraising. Another great advantage is by having a professional or team of professionals taking control, more effort can be focused elsewhere in business and life, back where it belongs.

This article was brought to you by Emanuel Arbib, who manages several investment and asset management companies.