Asset Management: A beginner’s guide

The pandemic has altered the way we live. It has impacted our health, both physical and mental, and is well on its path to affecting our financial well-being as well. It’s worrisome, to say the least. But there’s always light at the end of the tunnel.

We, humans, love to dream a dream of a blessed future, where everything’s right and just the way we planned it. But, it doesn’t always work out. Does it? The restaurant we have been planning to open, the trip we’ve been wanting to go to, the piece of jewellery we have wanted to own – these plans, however outlandish they sound at the moment, could be successful.

How? you ask? Very simple: SECURE YOUR FUTURE.

Asset management is one of the keys to a financially healthy tomorrow. Most of us think of it as something that’s too technical and beyond our reach. For the longest time, the common idea was that asset management was for wealthy investors. To an extent, sure, but not anymore.

Small-time investors can rely on mutual funds, index funds, and exchange-traded funds to make prudent financial choices. Asset management firms, these days, have restructured in a way that they are able to extend their services to both rich and average investors.

Things to keep in mind if you’re a rookie and interested in asset management.

1. An asset management firm’s job is to direct the client’s money in the market. Earlier, they would deal with wealthy investors but those times are far behind now because smaller investors can join the bandwagon as well.

2. When assets are managed intelligently, it helps to create wealth, which means the client will be able to multiply his riches with his existing money. One can hire a financial advisor, independent or work for a firm, to help him/her understand the risk factors attached to investments and how best he/she can direct the wealth.

3. It helps one manage taxes efficiently. The ever-changing tax laws can come with a new set of rules every financial year and therefore, some of the previous years’ investments may not make sense. It’s imperative that one seeks professional help in order to keep his/ her wealth in shape.

4. Taking early retirement is a tempting idea but for some, it’s a distant dream. Private firms don’t have pension plans and therefore, those wanting to retire early should have enough wealth to last them a lifetime. Financial planners can assist one in setting up a guide or developing lucrative pension plans for a secure future.


On the surface, asset management might seem like a big word from the world of finances that we have decided to not understand but once you dig deep, it’s as simple as saving and creating money, albeit with the help of experts.

What’s the key takeaway here? People invest for varied reasons. Some love the adrenaline rush of the risk that investments come with, some are addicted to building wealth. But, you must function according to your financial needs and wants, and not what others are doing.

Warren Buffet once said: “The most important quality for an investor is temperament, not intellect. You need a temperament that neither derives great pleasure from being with the crowd or against the crowd.” So, let’s not forget. Whether your hire an asset manager or a firm to handle your wealth, your financial goals should clear as a bell.

One comment

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