Asset management is the practice of increasing total wealth over time through acquiring, maintaining, and trading investments that have the potential to grow in value.
However, we must keep in mind that asset management has a double-barreled goal which increases value while mitigating risk (this is usually dependent on the client's tolerance for risk).
It refers to implementing specific techniques to balance risk in a portfolio. You might divide assets into categories, such as bonds, stocks and real estate.
Each type of investment "behaves" differently, so any downturns in one asset may be overcome by the success of another asset. It can protect you against loss and can remain one of the most important decisions you can make about your investments.
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