What is Asset Management?
Asset management is the practise of managing a series of investments to generate significant returns. This investment strategy provides investors with access to a wide range of traditional and alternative financial products that would not be available to average investors.
Wealth management is a type of asset management. It’s a comprehensive investment strategy which encompasses all aspects of someone’s financial life to invest in a wide range of asset classes and investment options.
Wealth Management Investment Options
Investors can utilise wealth management to create a carefully-calibrated, risk-rated portfolio that spreads their capital across a wide variety of investment options. These options include:
- Property: Bricks and mortar stock in the residential and commercial property markets. These properties are then sold on for profit or let out to tenants to secure rental revenue.
- Liquid Assets: This category refers to assets that are easy to convert or sell for cash without losing their value. Liquid assets are profitable because they’re regarded as relatively stable when they’re sold on the open market. Liquid assets include most stocks, money market instruments and government bonds.
- Securities: Financial instruments such as stocks, bonds, notes, options or warrants that are bought and sold in financial markets.
- Stock Markets: Buying and selling shares in publicly-held companies on an exchange. This involves long or short-term trades on the world’s main stock markets such as the New York Stock Exchange and the NASDAQ with a view to increasing investor capital.
- Hedge Funds: Alternative investment vehicles that are only open to investors that meet specific net worth criteria.
The Advantages of Wealth Management
Wealth management provides advantages that other investment strategies don’t. It allows investors to “cherry pick” asset classes and investment options to create a diverse, balanced portfolio that has been carefully calibrated to generate returns.
Furthermore, wealth management is a safe, secure and regulated market. This allows clients to craft an investment portfolio safe in the knowledge that their capital is protected.