Difference Between Asset Management and Investment Management

Asset Management vs Investment Banking

Asset management

Is the management of a client’s investment wherein as a part of the management the company doing the management will invest on behalf of the client.

Investment banking

Is coming up with options, in addition things, to help a company or an individual create capital through strategic investments.
Simply put, asset management is managing money that clients already have, while Investment management is generating money for the client that the client does not have.

What is Asset Management?

All that you hold as assets—your land (real estate), your stock holdings, bonds and more, needs management. Your assets when not managed or not managed well enough will not hold the value for you in the way you had planned. There are companies and agencies that do professional asset management and are sought after, predominantly, by the high net worth community. When you have a large, diversified set of assets, it becomes important for you to seek out focused and professional attention to keeping the assets going. For example, if you have a big office or a sprawling store house, they are in themselves units that require management—rent collection, the maintenance and upkeep, changing laws and meeting the stipulations all require expertise of a different sort. That is what an asset manager offer. This is just an example of what is taken care of in terms of property asset management. Typically the offer their expertise for a equity, fixed income, real estate, commodities and international investments. Setting of financial goals, making projections and drafting a strategy including investing in the profitable assets and risk analysis is what asset managers do.

What is Investment Management?

An investment is what makes to earn more and to be able to grow your wealth from the initial investment made; an investment is not a saving but an income generating process and almost everyone today is investing for the future; investing themselves with some insights available to them or to turning to professional investment management firms ( and banks) to get their investment needs met. While a savings can offer you the cover you need for the rainy day, it usually will not generate much with the interest that it earns. Interest earned from savings do not, normally, let you get ahead of the inflation that occurs year after year. Investments on the other hand grow( when successful) and yield more returns. They potentially have what it takes to not just catch up on inflation but also overtake it. Typically investment management includes but limited to financial statement analysis, strategizing portfolio, asset analysis and monitoring investments. Bank today in Singapore (and also elsewhere in the world) offer investment management and asset management services as a part of their wealth management and investment management offerings. Citi Singapore for example has a clutch of short term assets, long term assets and liquid assets options. Unit trusts that Citi offers help you diversify you investment portfolio and is managed by according to them some of the most reputed fund managers. On the other end of the spectrum it also offers a regular savings plan which can be started with as little as s$100.

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Author: Nicole Judy

Nicole Judy is a Wealth Specialist with one of Singapore's largest specialist financial planning organization also play as a Financial Adviser. As a financial planner, Nicole Judy currently provide professional portfolio advisory to corporations and individuals in the following specialties: Asset Protection and Insurance; Savings and Investments; as well as Legacy Planning, Wills and Trusts. He also specializes in unlocking investible cash from client's current assets and pride himself in providing a way for client to purchase assets with zero cash outlay and zero interests to service. In addition, Nicole Judy seeks to continuously upgrade himself by putting himself through challenges as well as learning from people from all walks of life. Specialties: Multi-currency Wealth Management Retirement Planning & Pension Transfers University Fee Planning Legacy Planning, Trusts & Wills Corporate Solutions CPF investments Life insurance, medical cover and health insurance Business succession planning Professional and Personal Development of People, Leadership and Talent Management, Team-Building with Team Ability Tools Unique Learning Process and Programs that Impact on Performance and Profits of Companies with Measurable Results Also, a Talent Scout and Talent Manager for Infopreneurs - Entrepreneurs who have a deep expertise in knowledge and share them via seminars and workshops.

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