Asset management is the practice of managing a portfolio of assets, such as stocks or bonds, on behalf of individuals, institutions, or organizations. The goal is to maximize returns and minimize risk through strategic and tactical decision-making.
Asset managers, who are typically professionals with extensive experience and expertise in the financial markets, are responsible for making investment decisions, monitoring the performance of the portfolio, and adapting to changes in the market. They typically use a variety of investment strategies and tools, such as diversification and risk management, to achieve the goals of their clients. Brokers very often offer asset management as well.
There are different types of asset management, including individual and institutional. Individual refers to managing the assets of individual investors, while institutional refers to managing the assets of institutions such as pension funds, endowments, and foundations.
Asset management can also refer to the management of physical assets, such as real estate, infrastructure, and other tangible assets. In this context, asset managers are responsible for the maintenance, development, and optimization of these assets.