Confusing Financial Terms Explained by svijayku89


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									Confusing Financial Terms Explained
Asset Management - The is the management of physical assets. This term refers to the
professional management of investments such as stocks and bonds and also real estate. Asset
management is generally for people with a very healthy bank balance. A lot of financial firms
and investment banks offer this service, however there is a lot of work involved and although
it may be costly it is always best to have a financial adviser to deal with the whole process if
you want good results. The investor will meet with the Asset Management team or financial
adviser and discuss the goals they want to achieve. By investing you assets you give the team
leeway to select where to distribute them to get the best results. The assets will not normally
go to one location and often get moved from one place to another to take advantage of a
strong market. Income from the assets are typically deposited into the same bank account,
making it more manageable and clear as to what has been achieved.

Capital Management - This is an accounting strategy, with the prime goal being an equal
level of working capital and also it currents assets and liabilities. Capital Management helps
to ensure companies are meeting their expense responsibilities and also sustaining adequate
revenue. Financial advisory companies can help assist your company to achieve both short
and long-term health through the management of capital resources. This can involve
managing inventories and accounts receivable and payable. With a good financial adviser you
will be able to meet your debt obligations and operate your expenses.

Investment Management - This involves investing large pots of money to make a profit. An
Investment Manager will invest the money for you and hopefully make a profit for you and
also they will manage to make a profit for their organisation too, through the set fees applied.
Investment Management is all about managing growth or income money that has been placed
in the pots as a principal investment. This money can come from different sources like Asset
Management (as explained above) or from pension funds. The contributions made to the
pension fund can hopefully improve the value of the pension depending on the growth that
has been generated. Also the money can come from private banks and wealth management
firms and even insurance companies.

These funds can be invested in different markets. It is not just shares and bonds some
investment funds will specialise in property which is a large market.

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