Asset Management is an organized process of acquiring, operating, upgrading, and maintaining the assets, whether they are tangible or intangible. In other words, it’s a professional portfolio management of different investments that could be bonds, stocks, real estate, mutual funds, etc.
Before making investment, the investor meets a team of asset managers where he guides them about his requirements and limitations such as, where does he want to invest in, what return or profit he expects, how much risk he can bear, and most importantly the time duration of the investment and return. Considering his general requirements, asset managers try their best to maximize the Return on Investment (ROI) by diversifying the portfolio in different products, rather than investing in one particular side that might prove to be quite risky.
Since the uncertainty in the global economy is high so investors seek diversified portfolio management of their funds and that is the reason why the demand for fund management, wealth management, or asset management has increased to a great extent. Portfolio management of the funds could be in a number of financial products including, foreign exchange, commodities, stocks, mutual funds, and real estate.