How do asset management firms differ from the rest?

1. How do asset management firms differ from the rest? Many finance students aspire to work in a fancy financial firm and field. This includes investment banking at a big firm, wealth management and asset management. One important thing to remember, however, for everyone who perceives to achieve big in the world of finance as a career is to have a commendable knack for numbers. They need to be quick in mathematics and at the same time should have a good score on critical thinking and logical reasoning as well, since, there are the two most important thing that would come to a financial manager’s aid in terms of any crisis that their client would face. While investment banking focuses on what is currently happening in the rapidly changing market indices, asset management focuses on the growth in the client’s financial portfolio. Basically, they asset individuals and businesses to manage their funds by studying their current financial portfolio, which includes liabilities and assets and then advising them on the way ahead. Asset managers also make investment decisions on behalf of the client, knowing the right time, so that their finances grow and their portfolio becomes stronger. An asset manager’s duty is to make sure that the liabilities of their client does not exceed their assets and returns on them. A knowledgeable and an experienced asset manager working in top asset management firms, knows that it is important that the investor does not invest in just one kind of asset. It is important to have diversification in their assets that would give them options of higher values and also better appreciation in capitals. This also helps to mitigate the risks associated with it. This pool of funds that we are talking about (capital), can be invested across shares, stocks, bonds, property and so on. some of these options such as the stock market, are known to deliver faster results, whereas property, as a long erm investment, gives returns over a long period of time. www.avendus.com

2. But how do asset management firms differ from other firms in financial sector like investment banking firms and so on? If you look broadly, financial firms can be split into two broad categories of ‘firms who buy’ and ‘firms who sell’. Asset management firms’ main goal is always to make sure that they make smart decisions when helping their client’s portfolio to grow sufficiently. In investment banking firms, the focus is mainly on having access to funds that are to be sold, these are stock purchases, mergers, acquisitions and some policies too. Another one of clear points of distinguishing between asset management firms and the rest is that asset management firms work, usually, work with high net worth individual. Other firms, like those involved in investment banking focus on working with giant companies. In asset management, it is usually the individual’s money that we deal with, where as in investment banking, it is the of the companies’. Clients of asset management companies trust with their savings to asset managing firms, hence making good and wise service very crucial. www.avendus.com