What is Asset Management? Industry Overview and Career Options

What is the Asset Management industry? What are the career options in asset management? All of that and more in explained in this video.
In short, asset management is about managing clients' money with the goal of getting returns while mitigating risk. To do so, asset management companies invest in a large number of asset classes. These include stocks, bonds, commodities, and alternative investment such as private equity or hedge funds.
When it comes to careers in the industry, for the money management side, there's three main roles: portfolio manager, research analyst and trader. In terms of skills, they're all analytical roles, with work-hours usually at around 60h a week. Salary-wise, an entry level analyst can expect to earn around 70-80k USD in a large financial hub like NY.
Lastly, looking at the companies, there's numerous companies with over a trillion USD under management. Among the biggest are BlackRock, Fidelity, and Vanguard. There are also investment banks with asset management divisions, such as Goldman Sachs, JP Morgan, and UBS.
Resources used:
www.investopedia.com/articles...
www.financewalk.com/asset-man...
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Chapters:
0:00​ -​ Intro
0:27 - Asset Management Explained
2:27​ - Asset Classes
3:40​ - Careers in Asset Management
6:47​ - Types of Companies in Asset Management

[@KenjiExplains]

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[@thomasferradini3549]

This one was incredibly interesting and well done, I am personally not particularly interested in private equity (trying to break into IB, second-year bachelor student) but if this is the quality I'll watch it for sure!

[@parthsoodan1317]

Yes please.

[@exc2774]

Yes!

[@mujibkhairulamri1231]

Please!

[@amirhosseinatabzadeh9291]

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[@DavisMiller-yh6bc]

Breaking down on the management of the risk involved, which one is the liquidity risk, I believe one should get proper knowledge on how to manage the risk involved for individual assets.

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To avoid operational inefficiency, downtime and even frustration on needs to have the appropriate practices and I think this video doesn't give enough insight on that.

[@BaileyWright-cd6jz]

I have a zeal to venture into a lifetime investment for financial freedom and more earnings. But the fear of loss aversion hinders a great deal from investing.

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He's not difficult to find either I contacted him on the net and his work is exceptional.

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Crypto and real estate crowdfunding are awesome investment options, it's great you are growing with an Expert

[@DavePatrick901]

These are very info for anybody who wants to get rich. Unfortunately, most people who will watch this video will not really be able to apply the knowledge embedded in it.we may not want to admit, but as warren buffett once said, investing is like any other profession, it requires a certain level of expertise. Not surprise that some people are losing a lot of money I'm the bear market, while others are making hundreds of thousands in profit. I just don't know how they do it . I've got $150k set aside to put in the market

[@VictoriaLisa959]

Understanding personal finance and investing will most likely lead to greater financial independence. By being knowledgeable about money and investing, individuals can make informed decisions about how to save, spend and invest their money. I know someone who made over $350k in this recession-nfluenced market,but to the best of my knowledge, it was through an F.A

[@Miya-qk8ym]

I've been interested in asset management for a long time since high school and as a current Finance major I wish there were more videos that talked about this kinda stuff. Personally, I want to work in research so I'm glad this video was made!

[@KenjiExplains]

Thank you!

[@prashil1512]

what uni are you at

[@Miya-qk8ym]

@@prashil1512 Why does that matter lol?

[@prashil1512]

@@Miya-qk8ym just asking, I've applied to uni as well hoping to get into asset management one day

[@essiegeorge6025]

@@prashil1512 hi I’m also going to such role I’m going to university of kent studying investment and finance

[@mattl8444]

Thanks Kenji. This was very helpful to know what asset management is and the difference between it and wealth management

[@diamonddagger7363]

Explained very well, I've been wanting to become an asset/investment manager for a few years now.

[@MDImran-bh3gy]

I started watching continuously.. I loved the way you describing. Sweet and short..

[@nonyenwosu8811]

I rarely leave comments, but I must say your videos are awesome! They’re really insightful. Thank you

[@KenjiExplains]

That's great to hear Nonye, really appreciate the comment!

[@snowmass5310]

Immediately hit subscribe . Love the format of the video.Straight to the point .Short and sweet

[@KenjiExplains]

Thank you! 👊

[@aryanharde6995]

Thanks for videos Kenji. They are amazing

[@user-uw5ug4sd4p]

you are explaining them super clear. well done

[@Thisismyyoutubechannel69]

To the point and very well explained!

[@HappySunshineManagementC-rx5uo]

Great video. We are the premier luxury asset management company. We are always looking to hire great talent.

[@raulnajera7647]

This is a very well-explained video. Thank you !

[@shauryapalit4285]

Hey, I have been following you for quite some time and all your videos have been super helpful. The video about CV building and resume templates helped me score an internship at EY here in India. Thanks a ton, and all the best for your upcoming videos!

[@KenjiExplains]

Congrats! That’s awesome to hear my videos helped. Thanks a ton for letting me, know made my day! Best of luck at EY 👏

[@shauryapalit4285]

@@KenjiExplains Thanks Kenji!

[@xizheng8548]

Thank you, Kenji! Very informative. 🫡

[@camlex6310]

you explain things so well!! thanks - would be keen for a private equity video also :))

[@KenjiExplains]

Noted!

[@fahmidislamsadhin808]

Brief and insightful. Thank you so much for making these types of videos. Looking forward to watching more of these types of Finance and Investment related videos by you.

[@KenjiExplains]

Thank you for the nice comment!

[@holdincourt]

Besides HNWI - Asset Management firms do dive into mutual funds which are pooled assets (ie Retail investors, like you and I, run of the mill) and can also be a few asset classes or even multi asset. Would have wanted this covered in the video for sure @Kenji

[@zakiislam6852]

Alternative assets for the win brother 🏆

[@willzinner8813]

This is quality thank you!

[@shusain7233]

Thank you. It was a great video.

[@chhotulaljain8971]

Great video with great efforts. Keep making it!!

[@taman453]

Great Video Kenji, could you please explain what projects should one put on their CV to tailor it for an internship at an asset management firm?

[@joykemprai]

Thank you so much. Love from India

[@sohagmiah1857]

Excellent Explanations

[@NabilaSalsaIzzatRaihan]

Thanks this is very helpful (and MECE!)

[@sisimazwi1890]

Amazing video

[@solomonbhandari-young4154]

Incredible, thank u coach

[@KenjiExplains]

Cheers Solomon!

[@desmondsawera6986]

Insightful

[@bonmirindo477]

Very good video Well covered.

[@0ddmood899]

That’s a great video !!!!

[@thesuperiorbench6307]

This is so useful lol. Cheers my man

[@mosaradwan]

Thank you very useful

[@roopak2910]

Well Explained!!

[@aslzar]

Hello! Could you describe these skills: spreadsheets, research and analytical so that students will be able to develop them step by step?

[@yasmin_8871]

Thank you for this! I'm applying for a support job with an asset fund manager and this has really helped to understand what the business does!

[@amyazaire1114]

Thank you Kenji! I'm interested in your private equity video! ☺

[@KenjiExplains]

Noted and thank you!

[@mckenzies6824]

Something about listening to Kenji's voice is calming, haha. He could be talking about rocket science but it'd still sound comprehendible

[@abundant_AF]

Thank you so much! Very concise yet thorough overview.

[@KenjiExplains]

Glad it was helpful!

[@blessedowo1958]

Thanks a lot for this bro

[@KenjiExplains]

Happy to help!

[@tube.brasil]

An important distinction is that AM companies can work with retail products for individuals and services for institutional clients. For example, Citicorp doesn't work with retail. Schwab is mostly retail. They are very different areas, products and approaches.

[@aragao_fernando]

great video !!!

[@KenjiExplains]

Glad you liked it!

[@Ari-lu5ve]

Do a video on accounting career options (Public accounting vs Corporate Accounting & Audit vs Tax)

[@laureyeo6941]

Can you please explain the differences amongst the 3: asset management, investment banking and management consulting ?

[@bullsep456]

this guy is underrated af

[@KenjiExplains]

Appreciate it 🙏

[@haydenrhodea761]

How are you doing your infographics? Envato Elements? The infographics are so clean!

[@KenjiExplains]

I actually make them on after effects

[@elisabeth1219]

HI, what are differences between financial advisor and sales in asset management?

[@narfox.1981]

Sir...what is the difference between mutual fund and AMC?

[@NomadLovesUs]

Asset management is more institutional so won’t directly be managing money of individuals such as HNWIs and UHNWIs unless through an intermediary/wholesaler/distributor. HNWIs and UHNWIs relate to wealth management and private banking. When we talk about asset management, the clients are typically insurance companies, pension funds, sovereign wealth funds, foundations and endowments, and charities. You might also have direct corporate clients (S&P 500 companies).

[@richardguzman3874]

what about real estate asset management? thats what i thought this video was about ..... not all that other stuff. do you have a video on real estate asset management? thx

[@josephnole1122]

Your videos are great! A private equity video would be amazing

[@KenjiExplains]

Noted!

[@johnnyj1969]

Can you do the Accounting qualifications by working for these firms?

[@donkeymaptv]

Thank you! Private Banking / Wealth Management would be interesting too :-)

[@KenjiExplains]

Noted!

[@Adams52523]

Hi! I’m excited to be here in your channel and I’m interested in learning more about investing and saving up for my retirement but am a little confused about the whole process. Any advice or tips to get me started up would be greatly appreciated.

[@ScottBruceman]

You're absolutely right about the power of compound interest and the long-term potential of investing in index funds like the S&P 500. For many, passive investing in broadly diversified funds can be a reliable strategy over time.

[@pogisosehume4228]

Hi Kenji there is tax free savings account portfolio with a limit of saving per annum of 36.000 but I interesting in investing with AuM company example Ninety one Assets under Management in SA verses investing with only growing at 3.5% Whereas with AuM it can grow with slightly high percentage of 9% or even more I want you input what do you think.

[@MrSayan94]

Can ACCA work in the Asset/Wealth Management industry?

[@notactuallytaylor]

I'm thinking of a career in AM, but the question I'm asking myself is whether asset managers actually provide any real value. Something like 80-90% of asset managers underperform the market in the long run. What's your take on this? I'm not sure I'd be comfortable pursuing a career where I don't provide any real value...

[@KenjiExplains]

Well not all asset managers have the goal of outperforming the sp500 say. Many are about diversification for instance. Others like venture capital add a lot of value when they hit a homerun funding Facebook say. Its a massive field and there’s a bit of everything!

[@tube.brasil]

You are right, they don't.

[@hahahahahahahaha6682]

subscribed immediately

[@KenjiExplains]

Cheers! 🙌

[@lucaschad5610]

Thank you very much for this great video! What’s better for career options? To begin in Asset Management or Wealth Management? The reason why I’m asking this question is because I have internship offers from both kinds of firms in Germany… (studying in the US though) Thank you very much!

[@SuperProfreestyle]

Asset management

[@KenjiExplains]

Depends on what you want! If you want to feel like you’re having more of an impact on a person level it could be wealth management but if you’re more interested in generating returns it’s probably AM. Congrats on the offers btw!

[@notactuallytaylor]

I'd start in AM and switch to WM a few years into your career if you want to

[@mmanfredip66]

🙌🙌

[@henlohenlo689]

can asset management be used to launder money? layer money, and misrepresent funds and put them in places of deregulation.? im not trying to do those things, but trying to be aware of criminal activity.

[@domiiigomiii6116]

Can you exit in a hedge fund

[@iandonegan2479]

Since investments banks are considered sell side, can they be considered buy side as well due to their asset management division within the investment bank. And do sell side analysts for the investment bank work with buy side within their own firm?

[@tube.brasil]

They say there is a "Chinese wall" between the areas...🤣🤣🤣

[@onee]

1:30 I kinda disagree with this explanation here. The insurance company doesn't grow it with the intention to pay you your money back one day. They instead hope that you won't crash it. Which means that they can keep the money. And if they can grow it on top of keeping your money, it means even more money for the insurance company. However, within the context of pension funds this explanation would make more sense. They have to pay your money back one day. Inflation reduces the value of that money. So, to not only earn some money themselves, but also protect their clients money, they try to grow it.

[@cristianro8428]

Nope. Insurance companies KNOW people are going to have claims. There is no "hope" in their metrics and analysis of claims history. However, they aspire for 2 types of growth: 1. Organic growth, which is extremely hard to accomplish. Also called underwriting growth, which is basically collecting more money in premiums than what is paid in claims. 2. Inorganic growth, which is what Kenji explained. For simplicity, his example is more than valid, which basically assumes AMCs take a pool of investment money and place it into very secured (and slow-growth) investments (usually government bonds) AMCs can look after these for a long time.

[@joseballite1666]

As a current hotelie, I’m curious about how hotel asset management is different from investment banking asset management. Do u have any ideas on this?

[@KenjiExplains]

Sure, they both have the same goal of generating returns but there's a few differences (I'm simplifying a little here): - Investment banking AM is typically more "passive" about buying and selling assets without actually influencing them individually (like buying and selling stocks for instance). - Hotel Asset Management: more hands-on approach to maximising rooms, F&B, and spa revenues. Typically a much smaller number of assets that they own as well.

[@joseballite1666]

@@KenjiExplains Thank you so much Kenji, I was interested but couldn’t find a lot of info on this. Hope you have a great day!

[@KenjiExplains]

Glad I could help!

[@sunithavarikuppala7553]

Hi, I am Anil, CA article student from India, wanted to work as industrial trainee in foreign country in Asset management (Research team). Please help me if there is any chance. I will be ready to start internship after October 2022.

[@Emmanuelgray-mt7bx]

Nice work,but i also think becoming financial free does not just happen within minutes proper plans should be put in place too at least awareness for the risk and fear of losing funds too

[@HelenGibbs-hs1re]

There is always a pattern in everything I think the video has shade light on some questionable situations which also helps in handling risk a bit.nevertheless proper plans should also be considered

[@Dorathyforest]

@emmanuelgray yes of course it should not be neglected it is either you plan to succeed or fail I almost made that mistake but thanks to Bianca Harley Doran

[@user-vn7id3nt7b]

@Dorathyforest I am saying the same thing I got stuck too trying to pursue the market myself because I didn't have better knowledge and understanding besides I didn't come across videos like this but things really took shape when I contacted a broker.

[@DomTeddy-eu6zt]

Very good stuff i contacted Bianca Harley Doran and her work strategies were exceptional

[@mkyhbz1802]

Hey kenji sir, I have a doubt regarding financial investment? Would you help me ? 🇮🇳🇮🇳 मुझे वित्तीय निवेश के सम्बन्ध मे कुछ आवश्यक चीज पूछना है । क्या आप मेरी मदत करेंगे? I also like your "voice" so much . I want you be my teacher or mentor. Don't you?

[@AD77BOI]

Got an interview tomorrow Kenji, any tips?

[@KenjiExplains]

Hard to say without any context as to what it's about but overall try to be likeable! As much as competence is important, so is being somebody that is pleasant to work 40+ hours with. Best of luck Adam!

[@mekielsaqibuddin2546]

When you work for a company, do they care if you make videos talking about them and the work that goes on? For example since he worked for Goldman Sachs, would he have been able to make videos talking about his work and experiences there?

[@KenjiExplains]

Hey! it depends on your company and their policies. I'd check with the compliance team if you're unsure about your situation

[@domiiigomiii6116]

Is it more difficult or easier to get into asset management?

[@KenjiExplains]

Compared to what?

[@domiiigomiii6116]

@@KenjiExplains compared to the more classical ways, such as business consulting or M&A

[@tyroilsmoochie-wallace]

Is asset management the same as investment management? what are the similarities and differences? Just want to hear your perspective on this.

[@KenjiExplains]

Yeah they’re usually used interchangeably

[@Shubhambltr]

Looking like dhruv rathee really

[@juliejoe2082]

*Investing in crypto now should be in every wise individuals list, in some months time you'll be ecstatic with the decision you made today.*

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Wow,Most intelligent words I've heard.

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Crypto is the new gold

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I wanted to trade Crypto but got discouraged by the fluctuations in price

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That won't bother you if you trade with a professional like Mr Donald chiafer

[@frainmalk8644]

I heard that his strategies are really good ?

[@romethariyarathne8903]

you are explaining them super clear. well done

[@KenjiExplains]

Glad it was helpful :)