28.What is asset management.

Аsset management - is the investment management of collective investments often offered as a service by portfolio or wealth managers within the context of "private banking" to private investors.

Its Purpose is to provide maximum returns at minimum investment or cost to the client. Asset management systems are goal-driven and include components for data collection, strategy evaluation, program selection, and feedback.

The key to the success of asset management is diversifying investments. They don’t just invest the client’s asset in one type of investment but instead will spread the risk; that way there is far less risk of huge losses. The members of the team managing these portfolios will be highly competent but there is always going to be at least some risk involved. Like other types of investment there will always be winners as well as losers. The members of the team can offer expert opinions about what they think is going to happen in the future, but there are no guarantees.

29.What are different investment styles?

Тhere are actually only three particular investment styles – and those three styles tie in with your risk tolerance. The three investment styles are conservative, moderate, and aggressive.

Conservative investors would like to maintain their first investment. In other words, if they invest $5000 they would like to make sure that they’ll get their first $5000 back. This type of investor normally invests in common stocks and bonds and short-run money market accounts.

An aggressive investor takes the risks – this means investing higher amounts of money in riskier ventures in the hopes of achieving larger returns. Aggressive investors often have their investment funds in the stock market.

A moderate investor usually behaves like a conservative investor, but use a portion of their investment funds for higher risk investments. Moderate investors put 50% of their funds in safe or conservative investments, and invest the remainder in riskier investments.

In conclusion: determining what style of investing you’ll use will be determined by your financial goals and your risk tolerance. Regardless what type of investing you do, however, you should carefully search that investment. Never invest without having all of the facts!

30.What is active and passive money management

Proponents of active and passive investment management styles have made exhaustive and valid arguments for and against both approaches. Each has its merits and inherent drawbacks, and this paper will not endorse one style over the other. Rather, our goal is to define the characteristics of each approach in an effort to help you determine which best suits your needs and preferences.

The difference between active and passive investment management lies primarily in the stated goal and the approach used to reach it. With active management, investment experts are hired based on the perceived value they can add above and beyond the benchmark. Passive management often stresses low costs, tax efficiency and the concept of market efficiency.

Passive management will maintain exposure to the market, but not offer any potential for above-benchmark returns (or down market protection).

Active management offers the potential for above-market returns, but comes with the chance that the manager won’t beat the stated benchmark. Also, neither approach can completely shelter you from the possibility of below-market returns. These variables and the nuances of your specific situation make this a decision best made with the assistance of your Financial Advisor.