Important Points for IC 99 - Asset Management Exam
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Asset management is defined as co-ordinated activity of financial risk management of an organisation to realise the maximum value from all its assets basically financial assets including shares, bonds, debentures, derivatives etc.
Asset management can be also considered to be a process of making best use of an organisations assets (financial) in order to maximise the wealth of the shareholders and also to provide the best possible returns to other stakeholders in the organisation.
Investment is a decision or action of committing funds in the financial or in physical form of assets in the present, with an objective to earn and receive dividends, bonus, interest and capital appreciation along with maintaining required liquidity to meet with various financial obligations for payments of cost of funds, refunds and repayments to the fund-owners and other stakeholders.
Asset management is precisely investment analysis and portfolio management.
Asset management deals with both qualitative and quantitative aspects.