Asset Management: The Detailed Guide

Asset management is a crucial discipline that plays a fundamental role in managing investments and maximising their value over time. It empowers individuals and organisations to effectively manage their investments. As a professional with a PGDM course in Finance, you are well-positioned to delve into the intricacies of asset management and leverage your expertise to make informed investment decisions.  

In this blog, we will define asset management to make it easy to understand if it is the right career path for you.

What is Asset Management?

• Asset management refers to the systematic and strategic management of assets to achieve specific objectives. 
• It involves a range of activities, including planning, acquiring, operating, maintaining, upgrading, and disposing of assets, all while considering risk, performance, cost, and sustainability factors.
• Assets can take many forms, such as financial investments like stocks, bonds, and real estate, as well as tangible assets like infrastructure, machinery, and equipment. 
• Intellectual property, including patents, trademarks, and copyrights, also falls under the umbrella of asset management.

Key Principles of Asset Management

• Maximising Value: This involves making informed decisions on investment strategies, resource allocation, and risk management to generate optimal returns.
• Strategic Planning: It involves assessing current assets, forecasting future needs, and developing plans to align asset utilisation with business goals.
• Risk Management: Effective asset management involves identifying and mitigating risks associated with asset ownership and operations. 
• Lifecycle Approach: Asset management entails optimising performance and cost efficiency at each stage, including maintenance, upgrades, and replacement, to ensure assets deliver their intended value.
• Data-driven Decision Making: Asset management relies on accurate and up-to-date data to inform decision-making. 

What does Asset Managers do?

Asset managers play a critical role in the field of asset management. Their primary responsibility is to oversee and optimise the performance of a portfolio of assets. Here are some key tasks and functions that asset managers typically perform:

• Asset managers are responsible for constructing and managing investment portfolios based on their client's objectives, risk tolerance, and investment strategies.
• They conduct extensive research and analysis to identify investment opportunities and make informed investment decisions. 
• Asset managers continuously monitor the performance of the assets in their portfolios. 
• They also work closely with their clients to understand their financial goals, risk preferences, and investment constraints. 
• Asset managers develop investment strategies and policies based on their expertise, market analysis, and the specific needs of their clients. 

PGDM in Finance 

• Asset management involves managing investment portfolios and making strategic decisions to maximise returns for clients or organisations. Among many PGDM specialisations, a PGDM degree in finance can be a valuable qualification for a career in asset management. 
• PGDM in Finance is a two-year postgraduate program, that focuses on developing strong financial management skills and knowledge. 
• To be eligible for this PGDM program, students must have a minimum of 50% in a bachelor’s program from any field of study. Although, few universities accept admission based on CGPA scored in undergraduate. While few other universities conduct entrance exams for admission to this course.
• Completing a PGDM in Finance can open up various career opportunities in various sectors, including banking, financial services, investment management, corporate finance, consulting, and financial analysis. 

Benefits of Asset Management

• Improved Performance: Effective asset management enhances asset performance, resulting in increased productivity, efficiency, and reliability.
• Cost Optimisation: Optimising asset utilisation and maintenance reduces costs associated with downtime, repairs, and replacements, leading to better financial outcomes.
• Risk Mitigation: Asset management helps identify and manage risks, safeguarding against unforeseen events that could negatively impact asset value or disrupt operations.
• Enhanced Decision-Making: Access to accurate and timely asset data enables informed decision-making, allowing organisations to allocate resources effectively and optimise asset portfolios.
• Compliance and Sustainability: Asset management ensures compliance with legal and regulatory requirements, as well as environmental and sustainability standards.

Career Options in Asset Management

Asset management offers a wide range of career options across various sectors. Here are some prominent career paths within asset management:

Job Role	Job Description	Average Salary
Fund Manager	You will be responsible for overseeing the operations and performance of investment funds.	₹17.5 LPA
Risk Manager	You will be responsible for assessing and managing risks associated with investment portfolios.	₹10 LPA
Investment Analyst	You will be responsible for researching and analysing financial data to provide insights and recommendations on investment opportunities.	₹8 LPA
Portfolio Manager	You will be responsible for overseeing investment portfolios, making strategic decisions on asset allocation, investment selection, and risk management.	₹7 LPA
Real Estate Asset Manager	You will be responsible for managing and maximising the value of real estate assets.	₹6 LPA
Research Analyst	You will be responsible for conducting in-depth research on specific industries, sectors, or asset classes.	₹5.5 LPA
Relationship Manager	You will be responsible for building and maintaining relationships with clients.	₹3.5 LPA

Top Recruiters

The asset management industry is vast and diverse, encompassing various types of firms, insurance companies, and private wealth management firms. Here are some of the biggest asset management companies:

• BlackRock
• Morgan Stanley 
• Goldman Sachs
• Axis Mutual Fund
• J.P. Morgan

Future Scope of Asset Management

The future scope for individuals in asset management is promising, offering opportunities for growth and advancement within the industry. To excel in asset management, individuals should focus on acquiring a solid foundation of financial knowledge, continuously develop their skills, adapt to technological advancements, and stay updated on industry trends. Building a strong professional network and seeking mentorship from experienced professionals can also enhance career prospects in the asset management field.

Conclusion

Asset management is a vital discipline that empowers individuals and organisations to optimise their investments and achieve their financial goals. The future scope of asset management is promising, with emerging trends like sustainable investing, technological advancements, and global opportunities shaping the industry. You can apply for the PGDM programme at Sunstone if you plan to pursue a successful career in Asset Management. You receive a lot of advantages that will help you develop your career. 70+ training and development sessions by top recruiters and industry experts, learn from expert guest faculty who are ex-IIMs and IITs, 50+ guaranteed job interviews with Placement Protection Plan and many more benefits you get if you apply with Sunstone. 

FAQs - Asset Management: The Detailed Guide

What is Financial asset management?

Financial asset management refers to the professional management of financial assets to optimise their performance and achieve specific financial objectives.

Which course do I have to pursue for a career in Asset Management?

To pursue a career in Asset Management you can opt for PGDM in Finance Management.

What is the difference between Asset Management vs Wealth management?

Asset management primarily focuses on managing investment portfolios and maximising returns for institutional clients and high-net-worth individuals. While, wealth management takes a more holistic approach, encompassing investment management along with comprehensive financial planning and other services to meet the unique needs of high-net-worth individuals.

What is the difference between Asset Management vs Investment banking?

Asset management focuses on managing investment portfolios and optimising returns, while investment banking involves financial advisory and execution of corporate finance transactions.

Can I pursue PGDM in Finance from Sunstone?

You can pursue PGDM/MBA courses from colleges powered by Sunstone. Some of the top colleges are:

• Atlas Ideal International College
• Ajeenkya DY Patil University
• GD Goenka University
• Bangalore Institute of Management Studies
• SAGE University