Asset Management

Allocating invested cash to a mix of asset classes and specific securities held in a portfolio to meet the goals of that portfolio's investors.

There are two primary types of asset management: active and passive; active management involves regularly reviewing and re-allocating funds in an attempt to "beat the market," while passive management simply requires buying assets, holding them for the investment period, and selling them when cash is needed.

When Taylor Swift collects her millions from dropping a new album and doing a tour, her financial advisor father then has to decide how much of that money to invest in stocks, bonds, real estate, and other assets and how often to buy/sell those assets. For this act of asset management, he is paid a percentage of assets under management, and TayTay doesn't disown him.