Money managers are the great experts dealing with financial stability and the security portfolio of an individual or a firm. These managers have an in depth holistic knowledge about the current market and the investment strategies followed in the present trend. These money managers are also referred as investment manager or even they are sometimes called as portfolio managers. In the present time period this important role can be played by any kind of people and the only thing which is acquired will be the knowledge about the finance. Now these money management services are being provided by either an individual or even organizations. There are also private bank who has taken up this role in order to serve people by giving financial guidance. These managers look upon the securities of the clients and they also deal with the bonds, shares etc. Money managers also take more responsibilities like protecting the assets of the clients and they deal with the pension funds if their customers are pensioners. Such extensive and incomparable works are done by these money managers and there are many things which are to be spoken about these brave people. So, in this article we shall figure out the essential roles and the importance of a money manager to this society.
Money managers also act as asset managers
As we have discusses earlier these money managers are well versed in performing many roles together and one of the important role carried out by them will be asset management. Actually people who have more assets and individuals or a company who do not have time to concentrate upon protecting their assets will surely approach these money managers in order to protect their asset and to be safe from other financial issues related to assets. Money managers give many interesting plans to their clients and they also assist their clients to make valuable investments in order to protect their assets legally. Money managers also indulge in asset selection and at sometimes they try to concentrate on stock selection too. Implementation of plans made on buying and selling assets and monitoring the asset growth are the other important roles performed by money managers in order to safeguard their client’s assets.
Money managers’ roles as internal auditors
Apart from several essential roles played by money managers, here is a vital role which makes money managers to keep in periodical touch with their client’s firm or company. The role is named as internal auditors and these auditors perform internal auditing at essential time intervals and they check the movements of all assets and money which are being used to develop their company. Sometimes these money managers who play their role as internal managers also take upon certain administrative controls in order to develop a proper structure to regulate money equally.
Making clear understanding about capital markets
Shares of the company will be traded on the stock exchange market and there will be surely a continuous sales and purchase of certain securities. Thus a very clear understanding is evaluated upon the capital market in the trend and it is really a brave action done by these money managers. When a security is being traded on a stock market surely there will be huge risks involved and to tackle all such issues happening in stock and capital market money managers determine valuable ways to overcome their risks and also they calculate the profit or the loss attained. Also money managers concentrate on debentures and they calculate the flow of fund properly to demonstrate the state of the client or a firm.
Money managers not only concentrate on making the clients to yield more profits, they also take the further step which is distributing the profits upon various fields. Money managers discuss with their clients and they grasp the interest of their clients. Accordingly they plan to invest the profit in order to just give growth to the profits too. Mostly many money managers guide their clients to invest their profits again in the same business or in other businesses and so it will help them to multiply their profits without facing risks. Thus researchers say the impact of the money managers’ role can be seen in the operation of the capital market directly.
Managing cash flow exponentially
The next important role carried out by a money manager will be maintaining and managing the cash flow dealings. Cash flow plays a very vital role in meeting out the emergency expenses and also other operational expenses in a company. Therefore a money manager keenly track the cash flow chart in order to ensure that there is enough cash for making further dealings in a business.
Surplus asset or profits will be really a headache for the business people as they will face several issues which may fall upon their surplus assets and profits. Hence to help in such situation money managers try to make a detail plan and through that plan manager will take decisions how to handle it tactically.
Other vital roles
Above discussed points are about the important roles carried out by a money manager or an investment manager and apart from those roles here are few other essential roles which they concentrate keenly.
- Managing upcoming and present risks
- Providing final reports
- Detailed survey done on balance sheet
- Plans and analyses made upon future plans
- Providing financial statements whenever essential
- Bringing back the lost assets or profits
All these are the roles which are performed by a money manager in a company. It is sure a money manager will give hands to the firm or the individual handling all the financial issues bravely and tactically. It is very much important for a company to have such essential manager in order to move their business peacefully and to prevent huge occurrence of loss or damage of net worth. All issues regarding legal and illegal affairs faced by a company financially. Therefore it will be good decision to hire a money manager immediately to enjoy the growth of the company.