What is Asset Management?

Asset management means having your money managed by someone who specialises in this. Asset managers invest assets with the aim of achieving a return. In the past, this required a high investment, but nowadays this does not have to be the case. In this article we will discuss what asset management is, what types there are and how it works.

Difference individual and collective asset management

There are two different types of asset management: individual and collective. Individual asset management is customised. We look at your situation and make an investment plan on that basis. Individual portfolio management often requires a large investment (from €100,000).  

Collective asset management means managing the assets of several people at the same time. Think for example of a pension fund. Collective asset managers often use model portfolios. These are investment strategies prepared in advance with a low, medium or high risk. The advantage is that you can often get started with a relatively low investment. The disadvantage is that a collective asset manager does not take your situation, wishes and goals into account.

While the better an investment strategy suits you, the nicer your investment journey will be. With a personal investment strategy we look for the ideal route to your goal. Fully tailored to who you are and what you want. That is the power of individual asset management.

What is online wealth management? 

In recent years, a number of online collective wealth managers have appeared on the market. This has made asset management available to a larger group of people. These online collective asset managers also use model portfolios and a low entry fee.

The investment strategies of these asset managers are similar, although individual investment products may differ. They diversify assets by investing in different countries, sectors and industries. Many asset managers use a combination of mutual funds and ETFs.

Asset management and licensing

Asset managers need a licence from the Netherlands Authority for the Financial Markets (AFM). They are also under their supervision. There are rules that they must comply with before they are allowed to manage assets. These include solvency requirements, requirements for 'good governance' and training requirements for specific staff. Does an asset manager not comply with all requirements? If so, the licence may be (temporarily) withheld or withdrawn. Do you want to have your assets managed by an asset manager? Then first check whether this party has a valid licence from the AFM.

Is asset management right for you?

If you want to make money work, but have little time or inclination to invest, asset management can be a good choice. However, it is important that you know how much money you can comfortably invest. Other aspects to consider when choosing an asset manager are:

• Which investments does the asset manager use?
• What do the costs look like?
• What protection do I have on my investments?
• How much control do I have over my investments?
• What is the relationship between possible return and risk?

Carefree money asset management?

Do you want to put your money to work, but don't have the time or inclination to learn about investing? Vive is an online individual asset manager. We put your money to work with a personalised investment plan and implement it for you. This way you build wealth with hardly any effort. You can read more about what we do here, or simply try the app.

Watch out! Investing entails risks.