What are the asset management?

Assets under administration are the combined value of all investments held or managed by a brokerage company or investment advisor on behalf of clients or assets held by a single client. Assets under the administration (AUM) are a measure of the success of a company or broker because the number is growing because new clients come to a company or broker, or how they will appreciate the investment of existing clients. In the United States, as soon as the company has more than $ 30 million USD (USD) managed by asset, it must register with the Securities and Exchange Commission. Many companies have thresholds over which investors will qualify for other services. The client's investment assets can also determine whether it is qualified for a certain type of investment because some investments have minimal purchase requirements.

The investor who has a significant amount of money to invest often gives money with an investment advisor to determine how to invest them. This service is called Money Management or Investment Management because Investment Advisor actively manages PEbelow. According to the counselor's research and/or his company, the advisor buys and sells investments according to their potential. The investor determines how much autonomy wants the advisor to have. Some investors want to approve every trade and others want to be informed only if the entire position is liquidated or if the trade is over a certain amount of the dollar.

For individuals with high net fortunes, many advisors offer more comprehensive services known as wealth management. In addition to investing, these advisors can offer tax or accounting services as well as financial planning or real estate planning. Property management services are usually offered for FEE, which is calculated as a percentage of the right client's assets.

Banks can also offer private banking services to clients with high net fortunes. Private banking services include traditional investments such as mutual funds, as well as more sophisticated investments such as hedge funds. Like wealth management services, private banking can includeOther services such as financial planning, real estate planning or accounting and tax services. The success of a private bank is also usually measured according to its managed assets, so it is in the best interest of the bank to manage all the client's money and ensure that the money grows as much as possible.