As wealth has grown throughout the much of the world, the demand for financial asset management has risen considerably. People who have earned prodigious amounts of money in their chosen professions often have little specialized expertise in financial markets, meaning that they have little idea about how to preserve and grow their wealth.
For these people, asset management firms can help individuals allocate their resources optimally, regardless of the particular goals one may have. Given the complicated nature of today’s financial markets, asset management skills have become both highly valued and highly lucrative.
For those people who are looking for asset management advice, there are a variety of companies that are willing to help you through the process. Banks have been one traditional avenue in which people have sought asset management advice. In addition to traditional checking and savings accounts, banks have expanded their services in recent years to provide a wide range of financial products.
Investment companies have also risen in popularity in the past several decades, leading companies include JP Morgan, Barclays Wealth and ING Investments. Thanks to the huge growth in the middle class, who became attracted to equity markets as a way to invest for retirement. Investment companies tend to focus on longer-term planning through the stock and bond markets. Through vehicles like mutual funds and exchange traded funds, investment companies allow for broad-based participation in financial markets, even for those without vast amounts of wealth.
However, for those with a considerable amount of assets available for investment opportunities, there are plenty of asset management companies ready to take your money. Hedge funds have become one of the most popular ways for wealthy individuals to gain access to the top financial minds. Hedge funds have typically been very exclusive, catering to a limited clientele whose wealth is usually counted in the millions. Originally, they were designed to hedge financial risks across different asset classes, but hedge funds in recent years have become more speculative in nature as they attempt to maximize their investment returns.
The future looks bright for the asset management industry, making it a good possible career for those who are interested. Emanuel Arbib, an asset manager states that typically, one can get a entry-level position at many financial institutions with just an undergraduate degree. Given the mathematical nature of modern finance, a mathematics or economics degree are generally two popular majors for those interested in the asset management industry. However, any degree that can be related to business will be helpful in such a career.
Of course, the asset management industry has become very specialized as the range of financial products have exploded. As such, anyone interested in a career in the asset management industry needs to consider the particular area in which one is interested. For instance, if one wants to get into the hedge fund business, it is very likely that you will need a graduate degree with advanced skills in mathematics and computing. Alternatively, a financial adviser probably does not need an advanced degree but will have to go through extensive specialized training.
Jonathan is a keen blogger and has often written on the Emanuel Arbib blog.