Money Management Basics

Money management (or asset financial management or investment management all of which are similar terms), refers to a procedure of professional and scientific managing of private or institutional clientele portfolios by financial advisors or relevant financial services companies.

The money managers propose a wide range of traditional and alternative financial products to their clients. These products are divided into fixed or conservative income financial assets, the mixed or balanced funds and the more aggressive financial solutions. Finally, the investment synthesis could be passive or active depending on how many transactions are going to be completed during portfolio’s management life.

The financial advice process is consisting of the following basic data:

  • Searching of smart investment options
  • Calculating all the possible risks
  • Assets allocation within the most common investment divisions
  • Diversification of the investment mix of each division
  • Investments’ timeframe specification
  • Composition of a specific investment proposal to clients
  • Run the investment plan or give orders to the trading department
  • Maximize profits
  • Give full detailed information to customers and after sales support

Money management is all about strategic movements and tactics on how to properly manage investment portfolios and its application is essential in order to achieve the expected results. 

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Disclaimer: Everything contained in this website is for informational purposes only and in no way constitute a recommendation to buy or sell the financial products mentioned. Most financial products have a substantial risk and are not suitable for all investors.


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