What is Asset Management?
Let's find out Asset Management meaning, definition in crypto, what is Asset Management, and all other detailed facts.
Asset Management is a type of system that assists in managing both physical and non-physical assets. For instance, stocks, bonds, derivatives, real estate, or cryptocurrencies.
Many fields have their own unique processes for asset management. For instance, IT Asset Management focuses on managing hardware and software while Infrastructure Asset Management refers to the management of infrastructure available to the general public.
Asset Management is usually done in one of two ways: active management and passive management. The former refers to active trading while the latter avoids unnecessary risks and exposure.
Let’s take a deeper look at Financial Asset Management which targets investments.
Asset Management is usually done by an asset manager whose main responsibility is to manage financial assets in a cost-efficient manner. This means that at the very least, an asset manager will minimize the financial risk associated with the asset. In the best-case scenario, an asset manager will generate profit. To do this, they must have a solid understanding of market activities.
The role of an asset manager can be filled by a specialist or a specialized company. One of the main benefits of hiring a company for this role is that they usually have handled many cases and have extensive knowledge and experience in the field. Meaning they have a higher chance of maximizing the return.
Who hires asset managers? Individuals, businesses, pension funds, and even the government.