Asset Management

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Asset Management FAQs

Although asset management has been around for some time now, its popularity among industries has only been apparent in the last few years. People do have quite a number of questions regarding asset management especially if they are interested in employing the services of asset management companies.

What is asset management?

Asset management refers to the method that a company or a specialized asset management firm uses to track all fixed assets such as equipment, chairs, tables, computers and technology and even building which are owned by a company or an individual. The tracking of he physical location of these assets, the ways which can be used to manage these assets, and accounting for amortizations, depreciation values and future resale values of these assets are also part of asset management.

How can asset management be an affective financial tool?

Asset management makes it easier and more efficient to manage the assets owned by the company or the individual and looks into ways of investing these assets for added returns. Collective investment schemes, pension funds, private banking and wealth management are some of the ways which handle assets that make asset management more efficient and increase one's assets.

What are the processes involved in asset management?

Asset management involves a number of processes which are all designed to increase the productivity of companies or individuals. Asset management services include planning, procurement, accounting for daily operating costs through disposal; tracking physical location of these assets; and accounting tasks such as amortization and depreciation. Asset management also establishes contact with suppliers which make it easier for companies to contact these suppliers for service, warranties and replacement.

Why is asset management useful?

When one keeps track of important information regarding one's assets, assets may be properly accounted for, from whom these were purchased from; who uses these assets, where these assets are located, the suppliers to contact for support, and even lease expirations and the right disposal period may provide the basis for managing and optimizing the assets of the companies or the individuals.

Asset Management provides detailed information on Asset Management, Asset Management Software, Asset Management System, Digital Asset Management and more. Asset Management is affiliated with Offshore Asset Protection.

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What is Asset Management?

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What is asset management? It is the investment management of collective investments often offered as a service by portfolio or wealth managers within the context of “private banking” to private investors. Its aim is to provide maximum returns at minimum investment or cost to the client.

The first priority of any asset management team is to identify the company’s assets or resources. The definition of asset can be anything owned by the client in terms of cash, property, goods, savings and investments.

Should this be in a commercial set up, assets will comprise of monetary investments, plants, infrastructure and its human resources. When this has been identified, the team will then check which one is profitable and what isn’t.

If an asset is doing well, then they will leave it be. Just like the line that goes “ if there is nothing wrong with it, why fix it?” However, if a certain asset is not profitable, the asset management team may present options to the client. Should this asset be sold or can this be made into something money generating.

An example could be after evaluating the machines used in the factory, the team will give their assessment if this should be repaired or if this should be replaced. In some cases, buying something new will save the company more money in the long term because you don’t have to worry about looking for spare parts that could already be hard to find.

But these are just tangible resources. Every client also has non-tangible resources that are namely the human resources of the company. People are considered to be non-tangible because the company does not own them but merely employs them.

If there are inefficiencies in the company, this can be addressed by managing it so things can change. The team needs to first study the various departments and the individuals before it is able to come up with an action plan. It is possible that some of the positions are redundant while some need more manpower. The team may recommend reducing personnel in one department to fill the need of another or totally scrap it.

Aside from improving their skills, they can also provide other things such as comfort level and security as this motivates people to work harder once a policy has been made to maximize the output of each employee.

Apart from checking on the assets, the team may also offer opportunities to the client so that their money will grow. For instance, he or she may recommend investing in certain things such as the stock market, oil, gold, bonds and other things of value.

There are many asset management companies out there who have the expertise to help you become more efficient. If you are interested in getting their services, you should do some research to find out if they do have what it takes to achieve your goal.

So what is asset management? It is a process that involves looking at the various things that the company has as well as the people who work there. If the client is able to listen to the inputs of the asset management team and follows everything, there is a good chance that the company will continue to grow which simply translates to profit.

Things about Asset Management that you need to know

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Asset management seems like a fancy term for people who are not much into investing and into business but the truth is, it is something that every people need to survive the rising costs of living and inflation rates.

The concept is actually similar in a way to putting the money that you earn in banks but the difference is, asset management makes use of stocks, mutual funds, properties and bonds to further increase your wealth and assets. You see putting your money in the bank is not enough. You can only do this for the money that you feel you will need during emergencies. You can put it there and let it earn a small interest, after all you can easily withdraw It when you need it.

However, for the extra money that you have that you don’t really need, invest them. Mutual funds, bonds and stocks yield higher rewards than the measly interests that banks’ provide. In just a few years, you can earn half of what you invested, something that you can’t do with the bank.

But before you get into asset management and hire yourself a professional, read through the items below to help orient yourself to the field of investing.

1. There are a lot of scams and con artists in the world

Money can make people do things that they will not normally do. This is a fact of life that you need to know before you start hiring somebody to handle your assets and properties. That way, you will be more careful when looking for asset managers.

When hiring somebody, make sure that you have done some background check first on the person. As much as you can, hire only those that you know personally. If you don’t know anyone who can handle your finances, ask the people that you know to recommend. Start with your family and friends as they will give you a good recommendation.

But before you hire the guy, set up a meeting first. Even if he or she is recommended by your most trusted friend, you cannot be too sure.

And after you have hired him or her, still take an active part with the investing of your money. Make sure that you are informed about every investment made. Do not give full power to the asset manager to decide on investing issues. Your approval must always be asked before making an investment.

2. Diversify

This is the golden rule that asset managers go by. Diversification means that you need to put investments in more than one product and not in one investment product. The yield can be good but it isn’t worth it to risk your entire savings in one go.

If your asset manager has not done this, think twice before continuing the service. The adage "Do not put all your eggs in one basket" holds true for this field. You see investments can also be very risky. Even those that are considered a surefire success can suddenly fold, leaving you with big losses.

That is why you need to make sure that you have something to fall back on if one investment falls through. If you diversified your investments in asset management, you can still count on your other investments to prop you up on your feet again.