Wealth Asset Management: Managers And Asset Classes

Wealth Asset Management

Wealth asset management is a term used to explain the activities used by financial professionals to allocate funds to investment classes for the purpose of deriving a profit as the value of the asset appreciates. Generally, asset wealth management is conducted by professional investment managers who are licensed and qualified to do so. Stockbrokers, Financial Services representatives and financial planners either allocate funds or are licensed to advice individuals who are looking to allocate funds for investment purposes. Let's examine some common vehicles used by financial asset managers.

Role of Hedge Funds: Hedge funds have been increasing in importance over the past few years as a wealth asset management vehicle for high net wealth individuals. Many of these funds are subject to regulation, laws and minimum entry requirements. By employing a range of trading strategies, hedge funds seek to outperform the general market indexes. Their popularity as an investment vehicle is due to the large amount of publicity they receive regarding high returns on funds employed. Market long and short, arbitrage and sophisticated computer trading comprise the range of trading strategies used by hedge fund managers.

Wealth Asset Management

Mutual Funds: Mutual funds are somewhat similar to hedge funds but usually do not employ asset and wealth strategies that are as sophisticated as the hedge fund counterparts. They remain a useful vehicle for exposure to sector assets and movements. Individuals can buy in and out of these funds in unit amounts.

Savings Most asset management approaches recommend maintaining cash or money on deposit as part of an overall wealth management plan. This cash can be used for emergency purposes, to fund short term liquidity requirements and to earn a steady rate of interest over the investment period. It is not a growth oriented strategy but is used as part of the overall investment mix.

Real Estate: Real estate is used by wealth management professionals as a vehicle for capital growth and cash flow. Many successful investors of the past have accumulated vast fortunes through understanding the mechanics of property investment. Real estate holdings, property trusts, or property funds can be used as investment vehicles to gain exposure to property appreciation.

This is just a basic introduction to some common investment vehicles used by wealth asset management professionals. There are many more specialized approaches that can be researched and are used by institutions and small investors alike. Specialized investment books offer deeper insight into wealth management vehicles.

Contact Us >> Privacy Policy