Asset Management the key of Economic Growth
What actually the asset management is? And why the companies are offering asset management? What is its role in economic growth of a country?
These questions are very important for a company to be answered.
Asset management is a systematic process of deploying, operating, maintaining, upgrading, and disposing of assets cost-effectively.
The term is most commonly used in the financial world to describe people and companies that manage investments on behalf of others. These include, for example, investment managers that manage the assets of a pension fund.
The research shows that at the end of 2009, the value of assets professionally managed in the world totaled €36.5 trillion, of which €12.4 trillion was managed in Europe (€3.8 trillion in the UK, €2.8 trillion in France, and €1.5 trillion in Germany). In relation to aggregate European GDP, total assets under management reached 97% at the end of 2009.
These figures shows that the asset management are highly important and the key to economic growth as well they play a vital role in investment of society’s long term savings.
When Asset management is important, therefore “Asset Managers” also play an important role in our economy, maintaining funds from investors to the business. Their allocation decisions help to determine the value and position of our economy and those decisions also affect financial stability. There is an active policy debate on how to regulate asset managers to maximize economic growth without endangering financial stability.