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Angel dcosta made post

What are the different types of assets held by an Asset Management Company(AMC)?

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Anamika Sodhani answered.
1 month ago

Asset management companies (AMCs) are financial institutions that manage the investments of both individual clients and companies. Some AMCs may provide personalized service and account management for each individual client, while others pool the resources of many clients in order to create more diversified trading options.

AMCs take investor capital and put it to work in different investments including stocks, bonds, real estate, private equity, gold, real estate, and more. They handle investments according to an internally-formulated investment mandate, or process. By putting funds under management, the investor has access to hundreds of years of combined investing experience, along with special services that only an investment bank can offer. This results in a higher return on the assets than could be achieved conventionally.

The best way to get a large return on assets is to diversify them. For this reason, assets are rarely pooled in one location alone, such as stocks, bonds, real estate, or mutual funds. The asset management team decides how to distribute assets, and may move money from one location to another to take advantage of a strong market. The team also provides long term investment advice based on market projections and may assist the investor with purchasing real estate and general wealth management.