What Is an Asset Management?

What Is an Asset Management?

By Charles Joseph | Editor, Financial Affairs
Reviewed by Corey Michael | Senior Financial Analyst

Asset management is a term often used in the financial industry, referring to the consistent monitoring and management of things of value, be those assets belonging to an individual or a whole company. The goal of asset management is to increase or preserve the worth of those assets and reduce any associated risks.

It’s a process that involves making investment decisions and the implementation of strategic plans. It covers a wide range of assets, including but not limited to stocks, bonds, real estate, machinery, patents, or trademarks.

In layman’s terms, it’s about keeping track of what you own, how much it’s worth, and how you can make it grow or protect its value better.

Related Questions

1. How does asset management work?

Want More Financial Tips?

Get Our Best Stuff First (for FREE)
We respect your privacy and you can unsubscribe anytime.

Asset management works by systematically managing, maintaining, and disposing of assets cost-effectively. It involves the development and implementation of plans related to investing and taking care of assets to increase their value and prevent any potential losses.

2. What are the types of asset management?

The types of asset management can often be broken down into financial asset management, enterprise asset management, IT asset management, and fixed assets management. Each type focuses on a specific category of assets, having different strategies and goals.

3. What is the role of an asset manager?

An asset manager’s role is to invest client funds into various assets, with an aim to grow and protect those investments. They’re responsible for developing and implementing strategies that increase the value of their clients’ assets.

4. What skills are needed for asset management?

The skills needed for asset management include financial knowledge, data analysis, problem-solving, decision-making abilities, and interpersonal skills. Besides, an understanding of legal regulations and the market dynamism also proves beneficial.

5. How can asset management benefit a business?

Asset management can benefit a business by providing a structured approach to the long term management of their assets. It maximizes profitability, improves investment performance, ensures quality control, and aids in making informed business decisions.