Allocating invested cash to a mix of asset classes and specific securities held in a portfolio to meet the goals of that portfolio's investors.
There are two primary types of asset management: active and passive; active management involves regularly reviewing and re-allocating funds in an attempt to "beat the market," while passive management simply requires buying assets, holding them for the investment period, and selling them when cash is needed.
When Taylor Swift collects her millions from dropping a new album and doing a tour, her financial advisor father then has to decide how much of that money to invest in stocks, bonds, real estate, and other assets and how often to buy/sell those assets. For this act of asset management, he is paid a percentage of assets under management, and TayTay doesn't disown him.
Related or Semi-related Video
Finance: What is a Commingled Fund?7 Views
Finance allah shmoop What is a co mingled fund What
is it Well it's A bunch of assets which used
to be single having come to the finance party stag
now being put together in one large tinder financial group
Well for that finance party the host had to make
the requisite ice sculpture Of course if that sculpture was
done to entertain on ly one set of assets well
it's relative cost was probably aye But if it covered
one hundred different accounts all invited to the party to
ogallala the great evolved wonder Well then the cost of
that ice sculpture per visitor is a sum one hundredth
of what it would have been Otherwise we'll co mingled
Funds exist typically when a family is successful and disparate
or separated they don't really talk to each other a
whole lot Joe over here made his money from a
shoe factory He sold brother bob over here Made his
money from his special head shine serum And sister suzy
over here made her money from her plastic surgery clinic
Or uh or what That was but well here's The
breakdown By combining their assets they sort of become a
kind of hybrid mutual funds like a family mutual fund
only they don't have to suffer all the regulatory filings
of being a mutual fund that hire their own professional
manager to run the co mingled assets think retired money
manager or someone in the broker dealer world who pretends
they know what they espouse or market or you know
they're shizzle in co mingled funds the family khun draw
margin against those funds like borrow against their own money
for really cheap prices Sigan sell stocks short which you
can't do in a mutual fund I'ii betting they'll go
down just like margin you can do in a mutual
fund and they could buy and sell stock options and
bond options in their funds and a bunch of other
freedoms they have Well that just buying a vanilla mutual
fund would not have given them so Wow with all
that freedom what can't co mingled funds d'oh Well sure
won't protect you from frostbite if that ice sculpture you
too thirsty just a heads up co mingled funds they're 00:02:11.57 --> [endTime] fun home
Up Next
What are Assets Under Management? The assets under management figure is the market value of all of the investment assets that a financial instituti...
What are Balanced Funds? Balanced funds are a combination of different investments, hence “balanced.” They can be comprised of stocks and bonds...
What is Capital Appreciation (Mutual Funds)? Capital Appreciation is the increase in the market value of an investment asset, meaning it can be sol...
What is Diversified Mutual Fund? Diversified mutual fund allow individual investors to obtain the benefits of risk mitigation through diversificati...