What is Money Management
What is Money Management?
Money management refers to the processes of budgeting, saving, investing, spending, or supervising the use of capital of an individual or group. The term can also refer more specifically to investment management and portfolio management.
The predominant use of this phrase in financial markets is the use of an investment specialist who makes investment decisions for large pools of funds, such as mutual funds or pension plans.
Main sockets
Large-scale money management refers to the processes used to record and manage the finances of an individual, family, or organization.
Financial advisors and personal finance platforms such as mobile apps are increasingly popular in helping individuals manage their money better.
Mismanagement of funds can lead to cycles of debt and financial stress.
Understanding money management
Money management is a broad term that encompasses and integrates services and solutions across the entire investment industry.
In the marketplace, consumers have access to a wide range of resources and applications that allow them to manage every aspect of their personal finances individually. As investors increase their net worth, they often seek the services of financial advisors to manage money professionally. Financial advisors are typically associated with private banking and brokerage, and offer support for comprehensive money management plans that can include estate planning, retirement, and more.
In the growing fintech market, personal finance apps exist to help consumers in almost every aspect of their finances.
Managing investment firms' funds is also a central aspect of the investment industry. The Corporate Investment Funds Department offers consumers individual investment fund options that include all investable asset classes in the financial market.
Investment firm fund managers also support capital management for institutional clients, with investment solutions for institutional retirement plans, endowments, foundations, and more.
Senior money managers by asset
Global investment managers offer retail and institutional funds and investment management services that encompass every investment asset class in the industry. There are two of the most common types of funds, namely effectively managed funds and passively managed funds, which repeat specific indicators with low management fees.
The list below shows the top 5 Global Money Managers by Assets under Management (AUM) as of the first quarter of 2021:
BlackRock Inc Corporation
In 1988, BlackRock Inc. was launched as a $1 division of the BlackRock Group. By the end of 1993, it boasted $17 billion in assets under management, and by 2020, that figure had ballooned to $8.68 trillion. BlackRock's exchange-traded funds (ETF) division, called iShares, owns more than $2 trillion in globally managed assets, equivalent to almost a quarter of the group's total assets. Overall, the company employs nearly 13,000 professionals and has offices in more than 30 countries around the world. 1
The Vanguard Group
Vanguard Group is one of the most popular investment management firms, serving more than 30 million clients in 170 countries. Vanguard was founded by John C. Bogle in 1975, in Valley Forge, Pennsylvania, as a division of the Wellington Management Company, where Bogle was former president. Since its launch, Vanguard has grown its total assets to over $7 trillion, becoming the second largest asset manager in the world thanks to the popularity of low-cost investment funds. 2
Fidelity Investments
Fidelity Management & Research Company was founded in 1946 by Edward C. Johnson II. As of December 2020, Fidelity had more than 35 million customers with total assets of $9.8 trillion and $4.9 trillion in assets under management. 3 The company offers hundreds of mutual funds, including domestic equity funds, foreign equity, sector-specific funds, fixed income, index, money market, and asset allocation funds.
PIMCO
Global asset management firm Pacific Investment Management LLC (PIMCO) was founded in 1971, in Newport Beach, California, by bond king Bill Gross. Since its inception, PIMCO has increased its assets under management to $2.21 trillion. 4 The firm has more than 775 investment professionals, each with 14 years of investment experience. With more than 100 funds under its logo, PIMCO is widely regarded as a leader in the fixed income sector.
Invesco Ltd.
Invesco Ltd. has been providing investment management services since 1978. In February of 2021, the company announced that it had $1.35 trillion in assets under management, across its more than 100 mutual fund products. Invesco also offers over 100 ETFs through the Invesco Capital Management LLC division.