Tuesday 19 September 2017

A Concise Insight into Asset Management and Six Sigma

Asset management can be described as a business and financial process which analyzes the value of specific assets to determine their financial health, viable investment opportunities, and growth potential. It can also be referred to as the management of collective investments. The practice is commonly associated with the industrial and technology sphere where professional analysts help stakeholders manage their investment portfolios to reap the maximum possible gains. Six Sigma Methodology is a quality improvement method used to reduce defects in products and services.

Typically, an in-depth financial analysis is required to create an investment growth plan.  This analysis is deeply rooted in statistics as is the Six Sigma Methodology.  This process is used to help companies create products and services free of errors or defects, and the process can help financial analysts come up with their investment growth plans.

The significance of this practice has steadily grown in the recent past as wealthy individuals seek to play an active role in public assets and technologies. This trend has been encouraged largely by rapid growth in industries such as computers and technology as well as transportation. People now seek to make large investments in these sectors. Asset management comes into play here; professionals help investors calculate the trade-off and growth potential of various portfolios.  The Six Sigma process can very much aid those professionals in calculating risks as well as maximizing portfolios.

Asset management practitioners usually work in teams with the investor in setting financial goals, reviewing the projections, analyzing current and past data.  Individuals with Six Sigma Certifications also work in teams to accomplish their goals. They (the professionals) then make recommendations on the viable portfolio-building strategies available. The processes involved may include in-depth statistical analysis of collected data and calculation of life cycles of the investments; tasks that go hand in hand with knowledge of the Six Sigma Methodology.

It may also be necessary to evaluate different securities such as shares and bonds in addition to physical assets such as computer technology or real estate. The professionals guide the investors in selecting the best stocks, developing financial plans for both short and long term growth. They also monitor all the investments on the behalf of their clients.

The investors and firms involved in this practice enjoy a symbiotic relationship. Both of them benefit from the various procedures. This especially applies here they possess commodities such as stocks, bonds and investments in real estate.  Knowledge of the Six Sigma Methodology only serves to better accomplish their goals.

The managers help their clients in setting clear and specific financial goals. They also conduct a risk analysis of the various strategies applicable and provide a comprehensive assessment to their clients. Professional recommendations on the assets that are likely to provide the highest returns for the clients are also given where necessary.

Asset management services are mostly solicited by wealthy individuals who have a diverse stock portfolio. Because the firms typically charge high fees, the individuals who make use of their services usually have a high net worth and a number of investment accounts. Paying for these expensive services does not necessarily translate into success in financial markets. This is because of erratic fluctuations in the stock and securities exchange markets. Firms cannot therefore guarantee success for the investor, only that they are doing their best and employing all of their accomplishments (including Six Sigma certification) in order to serve their clients.

Contrary to popular belief, asset management does not require adherence to strict formulas. Managers may choose from a number of strategies after conducting an assessment; and the Six Sigma Methodology can only serve to help them further. For instance, it may be necessary to diversify long term investments in order to spread the risk. These services are not mandatory for any individuals or businesses; small firms and people with only a few securities investments typically find them expensive. The practice is also risky; hence managers constantly find themselves at the mercy of fluctuating stock markets.

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