Fund management
WHAT IS FUND MANAGEMENT?
Generally the term fund management is used to describe all types of institutional investments and investment management of private investors..It is a kind of private banking which deals with discretionary management or as an advisory for the private investors, as the private investors often relate fund management services with the portfolio management or the wealth management in the private banking context.
ESSENTIAL ASPECTS OF FUND MANAGEMENT :
Fund management governance:
The fund management industry needs to operate on the principal of high standards of corporate governance which includes strong internal control and feed back reporting.
Growth:
Today fund management industry all over the world is growing very fast, mainly because of major growth drive in the conventional asset management as the capital markets are liquidating rapidly.Another important reason for the growth is that the alternative sophisticated investments options are increasing all over the world.
Performance:
On the basis of traditional investment banks the top level revenue growth plays a major roll in the performance of fund management, where as minimizing operational costs and improving operational efficiency are the other main aspects of fund management that drive its performance.
FACIliTIES PROVIDED IN FUND MANAGEMENT :
The facility of fund management services mainly consists of financial analysis, plan implementation, asset selection, stock selection and ongoing investment monitoring and plan implementation.".Fund management is a global industry in its own style and right, which is a very large scale industry responsible for taking care of almost all major international currencies like euro, yen, pounds and dollars.Most of the large fund management institutions of the world are basically a part of investment management, which creates revenue in billions and employing millions of staff.In the United States the fund management term refers to both individuals, who guide fund management decisions and the firms that provide investment management services.
GLOBAL FUND MANAGEMENT INDUSTRY FEATURES :
As already mentioned the scope of fund management industry all over the world is very vast.The global fund management industrys assets have increased to a record of about $60 trillion in the year 2007, which was up by 10% than the year 2006.This growth in the fund management asset is due to the efficient performance of equity markets and enhancement in the inflow of capital markets.Also another important reason is that the increment in insurance funds, mutual funds and pension funds .The estimated private wealth value is around $37 trillion and almost one-third part of it is invested in the form of traditional investment management funds.
MAJOR FUND MANAGERS OF THE WORLD :
The biggest fund management source of the world is the United States, sharing almost 50% of the total fund management of the world.Japan is the next in this category with around 12% of the total world funds and Great Britain with around 8% of the total world funds.In the Asian countries category India and China are the leading countries with a tremendous fund management potential.Also there are many other countries in the Asia-Pacific region showing increasing fund management potential.
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