What Role Does An Asset Management Firm Play?

By Author: Avendus
Total Articles: 27
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One of the most important aspects of setting up any kind of business is the capital. Without capital, any business is just an idea without enough funds for its execution. The capital is important to set the business. Get it running and as a backup in case the business needs any more funds. When the business finally starts running smoothly with regular profits flowing in, it becomes important to use this profit wisely. The profit need to always be stacked up in a bank account. It needs to be wisely invested in places from where you can get enough returns.
One way of doing this is by investing money into assets. But choosing the combination of assets to invest this money into is quite a tedious task. Hence, you can hire one of the asset management companies in India for this. An asset management company is a place where you can seek advice on how to go about with investing the money and profits in flow in the business. An asset manager is then assigned to you who sits with you, understands you needs and requirements, studies your profile carefully and then gives you a detailed report and suggestion on what kind of assets you should invest in and how it will be profitable to you.
Whether you go to one of the top asset management companies in India or you choose a local asset management firm, the function remains the same. However, bigger the company, more the benefits. But even to hire bigger asset management firms, you need to have investment of a certain amount through your account and only then can you avail the services. On doing this, you become an HNI.
The asset management companies make your investment plan according to your financial goals. Every big company also needs to invest in a specific type of fund known as the ESG funds. ESG funds in India are the environmental, social and governance funds that every big enterprise needs to contribute towards. To put it in a nutshell, the ESG funds are those funds, that are dedicated for the benefit for different strata of the society. The environmental factor talks about the firm’s conduct towards the environment in the campus of the company. How much care is taken in not polluting in the environment. The social factor talks about the treatment of people the business is associated with. Be it employees, be it suppliers, clients and so on. All the relations need to be ethically maintained and taken care of. Finally, the governance factor is about every transaction of the business happening with adherence to the government rules and regulations and within the limits of the law.
It is important to understand that the ESG funds are different from the CSR. ESG funds are more about the internal working and functioning of the business whereas CSR is about giving back to the society, externally. Therefore, for every big firm, having a right balance of CSR and ESG funds is very important.