What is fund management and why is it important that you work on your fund management for yourself and your business (if any)? In simple terms, as the name suggests, fund management is the process of actually managing the present funds that are available to us and working towards making these funds stronger. Which means, fund management is a process of taking into account whatever funds you currently have and working on a plan that is chalked out to get higher returns in near future. It is also important to not forget that fund management is a part of wealth management ultimately. In wealth management, the company or the wealth manager (if operating independently) scrutinizes your entire profile, to gauge the number of assets and the number of liabilities that you have. Along with that they also question you about the goals that you have for your business in future and what the financial goals are. They also figure what you risk taking capabilities are, financially, and then decide where to actually put in the money so that you there is some kind of security maintained along the way. When it comes to fund management, one also needs to understand that it is not a process that will give you the fruits only in a few months. It is something that will take time. The wealth manager ensures that your money is invested in different kinds of assets and funds so that if one of the asset values falls, in one type of asset, then there is no harm done to the other asset type. In fact, it is a huge red flag if your wealth management company does not follow this basic principle. A good wealth manager will have a close eye on the movements of all funds and invest your money in those funds accordingly.
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