In 2021, the global enterprise asset management market size was valued at just $ 3.9 billion. By 2030, this industry is expected to be valued at $ 10.6 billion, growing at a compound annual growth rate (CAGR) of 11.75% during the forecast period of 2022 to 2030. As the industry grows, it is also creating job opportunities for skilled, qualified professionals. If you aspire to make it big in the financial services industry, asset management is no doubt a lucrative option.
However, investing in the right training is key to success. This is because asset management has undergone a sea change due to the advances in technology. Besides building knowledge of financial fundamentals, contemporary asset managers must understand how to leverage technology to build a competitive edge.
In this blog, we explain what exactly is asset management. We also recommend how pursuing an investment banking course with placement support can help you build skills to succeed in this niche financial services career.
Table of Contents
What is asset management?
Asset management refers to the practice of investing a client’s wealth into various assets and optimizing the returns earned. There are dedicated asset management companies (AMCs) that focus on this activity. They manage assets to the tune of millions and billions of dollars for clients who can include corporations, high-net-worth individuals, insurance companies, pension funds, and sovereign wealth generated by governments.
The process of asset management is highly regulated. Hence, asset managers must be aware of these regulations. They need to follow strict mandates and risk parameters. However, they also need to use their instincts on how to generate institutional wealth for their clients. driven by an investment mandate. Asset management companies generate revenues through the fees charged for their services.
Asset management services and examples
A financial asset is essentially an instrument that derives its value from a contractual right or ownership claim. Examples include cash, stocks, bonds, mutual funds, commodities like gold, cryptocurrency, real estate, and bank deposits.
The asset manager meets with clients to assess their needs, risks, and goals, based upon which they can design an asset management plan. They need to study the market in-depth and use their knowledge to make data-driven decisions that help them optimize the returns while balancing risk. They must also keep up-to-date on regulations, and ensure that no fraud occurs in the process of their jobs.
Here are two examples of asset management services:
- Say a government offers a market-linked pension scheme to its citizens. Every year citizens make investments in their pension policy. The investments made by citizens are managed by asset managers who invest the funds in the stock market, to drive higher returns for pension holders.
- Another popular example is asset management companies offering mutual funds. The asset manager will devise various processes and parameters to ensure the strategic investment of funds into relevant assets. For instance, an equity mutual fund will invest most funds in the stock market. While that funds will go for safer debt-related instruments.
Skills of an asset manager
A contemporary asset manager must have a combination of skills as follows:
- They need strong analytical and critical thinking skills and be detail-oriented
- They must be skilled in Math, and excellent at financial fundamentals
- Communication and negotiation skills are equally important as acid managers engage with clients and a host of other stakeholders.
- Strong time-management and project-management skills are an asset
- They must understand how to leverage data to make timely decisions
- Asset managers must also have a strong understanding of regulations and legal compliance
- The asset management field has been greatly impacted by technology. Asset managers must have a thorough understanding of cloud-based, enterprise asset management software, and technologies like the Internet of Things, which are bringing efficiency and real-time intelligence to their field
Invest in niche training
A career in asset management demands niche skills. The best way for ambitious professionals to enter the field is to pursue an investment banking course with placement support. Ensure that the program exposes you to the financial markets landscape, cash equities and fixed income assets, foreign exchange, and money markets, to name a few. You can continue to work at your day job while pursuing this program remotely. Certification of the program is an important aspect. Ensure that it is certified by a respected and established partner from the financial markets field.
Asset managers are highly respected in the financial services industry. They play an important role in helping businesses and high net worth individuals grow their wealth. No doubt this career path comes with its own set of risks and challenges. But the rewards include a steady rise in compensation, recognition, and career growth. Investing in a high-quality certification program can help ambitious professionals grow niche skills, and make their foray into this fast-growing financial services field.
To know about Imarticus’ Certified Investment Banking Operations program, contact us through chat support, or drive to our training centers in Mumbai, Thane, Pune, Chennai, Bengaluru, Delhi, Gurgaon, or Ahmedabad.