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Articles Tagged with "asset management"

Asset Management in Today’s Investment World

The investment environment of today is even more  dynamic, complicated and fast paced than ever before. World events can rapidly alter the values of specific assets and as an investor,  you need to be ready and informed.  The amount of information available to investors is staggering and grows continually.

When considering investing your hard earned money it is important to hire an asset management firm that has the experience, knowledge and positive results.  There are so many assets from which to choose from and there are many factors to consider when constructing a portfolio.  In asset management, it is important to consider the goals of the client, the risks involved, the taxes that will be imposed on any gain, and a knowledge of the available opportunities and alternative investments.

The investor’s goals should largely determine the construction and management of the portfolio. Investing must have a purpose, for without a goal, asset management does not have a purpose for the client. Some objective must guide the composition of the portfolio.

There are many reasons for saving and accumulating assets through asset management. Individuals may accumulate funds for a down payment on a house, finance a child’s education, start a business using small business loans for this, meet financial emergencies, finance retirement, leave a sizable estate or even accumulate for the sake of accumulating.  For whatever the reasons or motives, saving money with a purpose in mind should dictate the asset management process and effect the composition of the portfolio.  Not all assets are appropriate to meet the investor’s financial goals. For example, savings that are held to meet emergencies, such as unemployment or illness, should not be invested in assets whose return and safety of principal are uncertain. Instead, emphasis should be placed on safety of principal and assets that may be readily converted into cash, such as in money market mutual funds. In the asset management process the funds should not sit idle, but should be invested in relatively safe assets that offer a modest return.

Depending on the short term and long term financial goals, the willingness to bear risk and tax consequences a prudent asset management firm will construct a prudent portfolio to meet their client’s goals.