What is asset management mean?

First of all, asset management is a business in which a specialist or advisor manages the money of his clients. In other words, a manager defines the investment goals of a major client and helps them achieve these goals through portfolio diversification and asset management. In other words, a specialist acts on behalf of the client in the purchase and management of bonds, funds, stocks and other financial instruments.

Although they seem to be almost the same as brokers, asset managers act a little differently. They work with individuals, commercial organizations, non-profit organizations and public companies of various sizes. At the same time, asset management service providers are usually large companies, but interaction through a single person is still possible.

What are the duties of an asset manager?

An asset manager is a trusted expert or representative of a company.

He is responsible for managing stocks, securities or money on behalf of the client. The main task of such an interaction is to generate profits or increase the value of assets over a predefined period.

Some may have heard of them as financial and investment advisors, asset managers, RIAs, etc. Some of the most popular types of asset managers are:

Investment brokers: They act as registered persons or on behalf of a brokerage firm. They deal with the purchase and sale of investment instruments and earn commission profits from each transaction.

RIA: The abbreviation stands for Registered Investment Advisor. Again, this person can be a company representative or a registered person. Their main role is to provide advice and investment recommendations on the management of existing assets. RIAs receive an annual fee for their services.

Financial advisor: Their job is to help clients diversify their portfolios; this also means setting specific long-term goals and ensuring that these goals are achieved through comprehensive asset management.

In summary, what does an asset manager do?

Although there are different people involved in asset management under different names, they all have the same duties.

This includes:

Acting as experienced experts in a specific market sector that the client prefers.

Make rapid and appropriate changes to the client’s portfolio as needed to avoid the risk of loss.

Collaborate with other advisors to provide comprehensive segment coverage

Sometimes asset managers work with financial advisory firms to meet clients’ goals, ultimately providing broader expertise that will help meet different investment needs. The main goal is to focus on the client and their preferences

Source: https://mtrading.com/education/articles/forex-strategy/asset-management-explained-beginners

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