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Nov 08

Asset Management Essentials 1

Asset management seems like a fancy term for people who are not much into investing and into business but the truth is, it is something that all people need in order to survive the rising costs of living and inflation rates.

The concept is actually similar in a way to putting the money that you earn in a bank in order to earn interest on that money and make it grow.

The difference is, asset management makes use of stocks, mutual funds, properties and bonds to further increase your wealth and assets.

Putting your money in the bank is not enough when you are going to get only 2% to 3% interest, as compared with 10% inflation on food prices in the early part of 2008.

By all means have some cash put by in an easily accessible interest-bearing account in case of emergencies, but don’t put all your eggs in one paltry basket.

For the extra money that you can afford to invest, consider instead m funds, bonds and stocks, which yield higher rewards than the tiny interest that banks’ provide. In just a few years, you can earn 50% of what you invested, something that you can never do with the bank.

But before you get into asset management and hire yourself a professional, read through the suggestions which follow below to help orient yourself in the field of investing.

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