Guru Goddess

Asset management growth is indisputably one of the goals of any business organization. This is tangible evidence that the industry has undertaken successful asset management, and is already experiencing general growth and improvement. It also implies that the enterprise has chosen the right asset management system and module, one that works compatibly with the already existing systems within the company.

Asset management gains even greater importance during these technologically advancing times. Gone are the days of manual work; the administration of assets today has certainly evolved to include diverse and complex database systems and reliance on accurate and timely information.

What makes for effective asset management?

Asset management should be on the forefront of the strategies being adopted by any industry. However, it will be futile to speak of asset management merely in the tangible sense, since the generation of businesses nowadays relies heavily on technological systems and data maintenance. Thus, in order to be wholly effective, asset management must include both the hardware and software assets of the company.

Essentially, asset management must make room for the effective organization of production, facilities, transportation, and even digital assets. The budgeting, procurement, maintenance, and depreciation calculation of the fixed assets must be undertaken with value maximization and cost minimization in mind. Asset management solutions being offered to various industries nowadays have organizational modules on managing assets, human resources, materials, and softwares.

Asset management systems must provide tools for improvement on assets return and cost-cutting of asset ownership. These systems must also assist in license compliance and promote enhanced security, especially for businesses that span different branches in different locations. A good asset management solution must have facility for assets tracking, whether these assets are physical or intangible.

The growth goals of asset management:

In order for asset management to be successful, it must be able to achieve several goals. First of all, it must assist industry managers in making the best use of its assets. It must be able to pinpoint which assets need to be worked on, and which of these are just being idle. Simply put, asset management is geared towards bringing about greater value from the assets of the company, and using them to achieve more competitive performance and productivity.

Asset management tools should also be effective in the control of asset ownership (acquisition and divesting depending on need) and the calculation of asset-related risks. It should also be able to provide for accurate inventory control and data storage. Most of all, it must engender wiser decision making where assets management is concerned, in the face of consistently shifting technology and cutthroat competition.

Why asset management is essential for organizational growth:

Asset management encompasses not merely the actual physical and intangible assets of any organization, but more importantly, the effective utilization of each. This essentially means that asset management caters to various disciplines – from administration to engineering, and from production to information management.

With successful asset management, growth becomes efficient, directed and controlled. Labor and production become effective, downtimes on equipment and facilities are minimized, and the total cost of fixed asset ownership is significantly reduced. Solutions for better asset management are available from providers, all offering different solutions to the more specific asset-related concerns. Organizations must be able to pinpoint the areas that need to be enhanced, seek the assistance from management solution providers, and to work alongside these management tools.

Asset management growth is not a one-way street, nor is it expected to happen in a momentary tick. Asset management will continue to shift and evolve, and industry managers must be able to understand this from the beginning, to achieve the most favorable results for the entire organization.

Do you need asset management? If you have a lot of businesses and can’t keep track at one instance, then the answer is yes. For such a task, you donít hire someone inside the company but an outsider who has the expertise to watch over your financial investments.

Professionals who do this kind of work are employed by mutual fund companies. Unlike banks that just keep your money where it earns interest, these companies pool the resources of several investors and place them in different types of instruments. The most popular ones are listed below.

First is called fixed income. By definition, these are investments that will generate a regular flow of income for the investor. Clients that want to invest here are usually issued government bonds.

Next is equity. Unlike fixed income, there is a bit of risk involved here because you are investing in the stock market. To prevent losses, experts have to study the market, assess the risks and volatility in order to get the best possible returns. Equity schemes are neither limited to a certain industry or country. This means that it is possible to invest in the stock market in Europe or the Asia Pacific region.

There is also balanced where the mutual fund company will invest in a mix of assets such as shares, bonds and stocks. The risks are higher here but it may soon pay off in time especially for those who donít mind waiting for a few years to get their investment back.

The money market includes trading treasury bills, commercial paper and other liquid securities. You get a certain amount each month because of interest. It is safer than equity or balanced but the downside is that the rates are usually lower.

Some clients may choose to invest in commodities. There are two ways to trade in this market. (1) Options and (2) Contracts. Options are considered safer. A joke among such traders is: “How do you get a million dollars trading commodities? Start with two million.” Examples of these include gold and other precious metals, coffee, currencies such as the Japanese Yen, as well as the most talked about issue right now, crude oil. The price of oil has gone up by more than 50% this year and it is hard to tell when it will go down. There are various factors affecting this. Even if Saudi Arabia has pledged to increase production, the heightened tensions between the US and Iran will be a factor. In order to be traded, a commodity must be volatile. Once its price stabilizes, it will no longer be traded. An example of this is Tomato Paste which was once traded but no longer is.

If you want to increase your portfolio, then perhaps you should get into asset management. Donít forget that there are risks involved so there will be times that you will make some and lose some. By diversifying, some people have been able to double their fortune. To know which one is the best to get into, talk with someone from one of these firms to help you find the perfect scheme.

What do mutual fund companies get for making you money? A certain amount which includes fees and expenses but that depends on the arrangements made with the mutual fund company. Then there are also additional expenses called brokerage commissions. This is usually incorporated into the price of the fund that is reported 3 months after the fundís annual report.

So do you need asset management? Yes because despite the amount you pay, it is a win-win situation when it comes to asset management between the client and the mutual fund company. For those who are thinking of getting into it, donít even bother if you are not a high roller.