Asset Management Company

An asset management company (AMC) is a company that invests its clients' pooled
fund into securities that match its declared financial objectives. Asset management
companies provide investors with more diversification and investing options than
they would have by themselves.
Asset management, broadly defined, refers to any system that monitors and
maintains things of value to an entity or group. It may apply to both tangible assets
such as buildings and to intangible assets such as human capital, intellectual
property, and goodwill and financial assets. Asset management is a systematic
process of deploying, operating, maintaining, upgrading, and disposing of assets
cost-effectively.

Asset Management Company as financial

institution
The most common usage of the term "asset manager" refers to investment
management, the sector of the financial services industry that manages investment
funds and segregated client accounts. An asset management is a part of a financial
company which comprises experts who manage money and handle the investments
of clients. From studying the client's assets to planning and looking after the
investments, all things are looked after by the asset managers.

Classification of Asset management

How does it works?

AMCs offer their clients more diversification because they have a larger pool of
resources than the individual investor. Pooling assets together and paying out
proportional returns allows investors to avoid minimum investment requirements
often required when purchasing securities on their own, as well as the ability to
invest in a larger set of securities with a smaller investment.

A systematic process of maintaining, upgrading, operating physical assets.

Enhances knowledge of capital assets and their respective values

Establishes standard process for investment decision-making

A system framework that provides a measure of organizational performance and

ties it to internal short and long range planning

Links business, engineering, economic theory to an organizations mission

Provides tools for organized, logical approach to decisions.

How Asset Management Companies Work

Asset management is in the business of using money to make more of it.

Asset management companies manage the money of their clients to achieve
specific financial objectives within guidelines under which an investment pool
is organized.
The pool might take the form of a mutual fund, hedge fund, retirement or
pension fund, or other institutional fund and, depending on how the fund is
organized.
Asset managers could invest in any range of investment vehicles including
equities, fixed- income securities, and derivative products such as options
and futures.