Heard the term “asset management” as a cool term in the business world. Asset management seems only apply to people who want to invest or engage in the business world. But actually, asset management is something that everyone should know and use to survive along with the high cost of living and inflation rate.
The concept of asset management is the same by placing the money you earn in the bank, but that makes different is that asset management is an investment in shares, mutual funds, property and bonds to further increase the wealth and assets owned or to deliver more value for its assets. Sometimes you realize that saving money in the bank is often not enough. You only save money for emergencies only. You save money in the bank, get a little interest, but when you need it then you pull it again
Invest in mutual funds, bonds and stocks yield a higher return than the interest rates offered by banks. Only in a few years, you already can get a half of what you invest, something that you will not get from the bank.
Before you jump in the implementation of asset management and work professionally in the field of asset management, some things ought to note first:
1. Making the investment diversification
Variation is the golden rule for an asset manager. Diversification means that you need to place investments in more than one product and not just in one investment product.
If your asset managers not done the diversification of your assets, think twice before you decide to continue to hiring your assets manager. Your investment can be very risky. Even people who already considered success in investment will also suffer losses or failure to invest.
That’s why you should make sure that you have something to start over if one of your assets in a failed investment. If you do diversify investments within asset management, you still can rely on your other investments to sustain you.
Like eggs in one container, if the container falls it will break all. But if you save eggs in many container, if one container fell and broke the eggs, you still have another egg reserves.
2. Beware of scams
Money can make people do things that are unusual. It is a fact of life that we know together. For that reason, before you begin to hire someone to handle your assets and property, be aware and do not easily believe against such person. That way, you will be careful when looking for asset managers.
When hiring someone, make sure that you have done some background check of the person. As much as possible only hire people who you know personally. If you do not know anyone who can handle your finances, ask people you know to recommend someone who capable to become your asset manager. Start with family and friends due to give a good recommendation. Once you select a person, hold a private meeting with that person and learn about the attitude and character, even if that person is recommended by your most trusted friends, you can not be sure 100%.
Once your asset managers started to work, take an active role in investing money and your assets. Make sure that you get
information about each of the investments made. Do not give full trust to the asset managers to decide investment issues. Final approval is under your control.