The Distinguished Role of Asset Management in A Firm’s Growth

1. The Distinguished Role of Asset Management in A Firm’s Growth In popular culture, we have seen how glamorous world of investment banking and asset management is. Although we get what they are and what they do with reference to the movie plot, but very few of us go to dig into what these two do a for a business. Investment banking, asset management and wealth management are of prime importance to any business and business owner. Investment banking is what helps the firm to grow rapidly and assists them in case of any kinds of mergers and acquisitions, underwritings for the issues of new stocks and help them to tackle the question of ESG funds. ESG funds are the environmental, social and governance funds which are portfolios of equities in which the above said factors are integrated. Having these means that the said portfolio of the company has qualified the test over the sustainable measures that a company or the government is taking with regards to this criterion. A fun fact, there around 300 mutual funds and exchange trade funds that have an ESG focus. It is also found that the number of cheaper versions of these funds has doubled so that the investor desires get satisfied but at a lower cost. As we mentioned above, asset management and wealth management are also two very important aspects of investments by a company. When you visit any of the asset management companies in India, you will be assigned an asset manager. This person will do a deep study of your current financial portfolio, will jot down your current assets strength and liabilities and will accordingly chalk out a plan on the investment that your business should do, in order to reach your financial goals. There are different types of asset management, such as, financial, enterprise, infrastructure, public, IT, fixed assets management, and digital asset management. These above-mentioned falls under two broad categories which are namely tangible assets and intangible assets. The assets are divided into various categories for various purposes such as accounting and taxation and to also measure, the value or health of financial entity. There are also different types of asset managers. Namely, analytical asset managers, operational asset managers, transactional asset managers, and the comprehensive asset managers. All of them hold expertise in said field. Most of the times, the investment banking companies in India perform the role of asset management firms as well. An investment banker can switch to the role of asset manager and vice versa. Although the job of asset manager is very demanding and difficult, the rewards are sweet. Asset management is not stagnant like wealth management. It is an ongoing process filled with numerous elements that try to get most out of an income generating property. This process needs thorough planning and far sightedness in terms of investment. There must be a solid attention to detail to figure what asset will gain the business maximum gains. www.avendus.com