Asset management refers to the process of developing, operating, maintaining, and selling assets in a cost-effective manner. Most commonly used in finance, the term is used in reference to individuals or firms that manage assets on behalf of individuals or other entities.
Assets can include physical assets such as buildings, equipment, and infrastructure, as well as financial assets such as stocks, bonds, and other investments. Effective asset management involves understanding the lifecycle of assets, assessing the risk associated with them, and implementing strategies to ensure that they are used efficiently and effectively.
Asset management is often used in the context of investment management, where it refers to the management of a portfolio of investments with the goal of maximizing returns and minimizing risk. This involves conducting analysis of investment opportunities, selecting investments based on their risk and return characteristics, and monitoring the portfolio over time to ensure it remains in line with the investor's objectives.
Every company needs to keep track of its assets. That way, its stakeholders will know which assets are available to be employed to provide optimal returns. The assets owned by any business fall into two main categories: fixed and current assets. Fixed or non-current assets refer to assets acquired for long-term use, while current assets are those that can be converted into cash within a short amount of time.
Importance of Asset Management
Enables a firm to account for all of its assets
Helps guarantee the accuracy of amortization rates
Helps identify and manage risks
Removes ghost assets in the company’s inventory
Equities are the same as stocks, which are shares in a company. That means if you buy stocks, you’re buying equities. That means you’re a partial owner of shares in your company..
Cryptocurrencies are digital assets people use as investments and for online purchases. You exchange currency, like dollars, to buy “coins” or “tokens” of a certain kind of cryptocurrency.
Offshore funds are mutual fund schemes investing in international markets. These funds invest in international markets either directly or have the option to invest in other funds in those markets.
Funds management is the overseeing and handling of a financial institution's cash flow. The fund manager ensures that the maturity schedules of the deposits coincide with demand for loans.
Asset management is the practice of increasing total wealth over time by acquiring, maintaining, and trading investments that have the potential to grow in value.
Wealth management is an investment advisory service that combines financial services such as investment advice & estate planning to meet the needs of clients.