Table of Contents

Money Management: Definition and Top Money Managers by Assets

By

澳洲幸运5官方开奖结果体彩网:James Chen

Updated August 27, 2024

Reviewed by

Samantha Silberstein

Money Management: The processes utilized to record and administer an individual’s, household’s, or organization’s finances. — Investopedia / Julie Bang

What Is Money Management?

Money management refers to the processes of budgeting, saving, investing, spending, or otherwise overseeing the capital usage of an individual or group. The term can also refer more narrowly to 澳洲幸运5官方开奖结果体彩网:investment management and 澳洲幸运5官方开奖结果体彩网:portfolio management.

The predominant use of the phrase in 澳洲幸运5官方开奖结果体彩网:financial markets is that of an investment professional making investment decisions for large pools of funds, such as 澳洲幸运5官方开奖结果体彩网:mutual funds or 澳洲幸运5官方开奖结果体彩网:pension plans.

Key Takeaways

Money management broadly refers to the processes utilized to record and administer an individual’s, household’s, or organization’s finances.
The term also refers more narrowly to investment and portfolio management.
Financial advisors and personal finance platforms such as mobile apps are increasingly common in helping individuals manage their money better.
Poor money management can lead to cycles of debt and financial strain.
The biggest money managers by assets under management (AUM) are BlackRock, Vanguard, and Fidelity.

Understanding Money Management

Money management is a broad term that involves and incorpor𝐆ates services and solutions across the entire investment i🌃ndustry.

Consumers have access to a wide range of resources and applications that allow them to individually manage nearly every aspect of their 澳洲幸运5官方开奖结果体彩网:personal finances. As investors increase their net worth, they also often seek the services of 澳洲幸运5官方开奖结果体彩网:financial advisors for professional money management. Financial advisors are ty🍎pically associate✃d with private banking and brokerage services, offering support for holistic money management plans that can involve estate planning, retirement, and more.

Important

In the growing financial technology m🐓arke🐻t, personal finance apps exist to help consumers with nearly every aspect of their finances.

Investment company money management is also a central aspect of the investment industry. Investment company money management offers individual consumers investment fund options that encompass all investable asset classes in the financial market.

Investment company money managers also support the capital management of institutional clients, with investment solutions for institutional retirement plans, 澳洲幸运5官方开奖结果体彩网:endowments, foundations, and more.

Top Money Managers by Assets

Global investment managers offer retail and 澳洲幸运5官方开奖结果体彩网:institutional investment management funds and services that encompass every investment asset class in the industry. Two of the most popular types of funds include 澳洲幸运5官方开奖结果体彩网:actively managed funds and 澳洲幸运5官方开奖结果体彩网:passively managed funds. Passively managed funds replicate sp🧸ecified indexes and usually charge low management fees.

The list below shows the top global money managers by 澳洲幸运5官方开奖结果体彩网:assets under management (AUM):

BlackRock Inc.

In 1988, BlackRock Inc. was launched as a $1 divisi🐓on of the BlackRock Group. By the end o༒f 1993, it boasted $17 billion in AUM, and, by 2022, that number swelled to a whopping $8.6 trillion.

BlackRock’s 澳洲幸运5官方开奖结果体彩网:exchange-traded fund (ETF) division, called iShares, has about $2.5 trillion in AUM globally, amounting to roughly 29% of the group’s total assets. Overall, the firm employs approximately 13,000 professionals and maintains offices in more than 30 countries around the world.

The Vanguard Group

The Vanguard Group is one of the most well-known investment management companies, catering to more than 30 million clients across 170 countries. Vanguard was founded by 澳洲幸运5官方开奖结果体彩网:John C. Bogle in 1975 in Valley Forge, Pennsylvania, as a division of Wel𓆉lington Management Co., where Bogle w𒁏as previously chair.

Since its launch, Vanguard has grown its total assets to beyond $8 trillion, becoming the world’s second-largest 澳洲幸运5官方开奖结果体彩网:asset manager thanks to the popularity of its low-cost investment funds.

Fidelity Investments

Fidelity Management & Research Co. was founded in 1946 by Edward C. Johnson II. As of Dec. 31, 2022, Fidelity had more than 40 million customers with $10.3 trillion in total assets and $3.9 trillion in AUM.

The firm offers hundreds of mutual funds, including domestic equity, foreign equity, sector-specific, 澳洲幸运5官方开奖结果体彩网:fixed-income, index, 澳洲幸运5官方开奖结果体彩网:money market, and 澳洲幸运5官方开奖结果体彩网:asset allocation funds.

What is the difference between a money manager and an asset manager?

As implied in ಌtheir respective names, money managers manage money and asset managers manage assets. However, as assets essentially represent mone🦄y, the two can largely be considered the same thing.

What are the main principles of money management?

The main principles of money management are generally income, investing, savings, an🥃d spending. With the right balance, these principles can help individuals to maximize their financial well-being.

What is the goal of money management?

The ul𒊎timate goal of money management is to maximize weal⛎th.

The Bottom Line

Money management is precisely that: the management of money. When people talk about money management, they may be referring to how an individual or company handles their finances, whether that be 澳洲幸运5官方开奖结果体彩网:budgeting, saving,ﷺ investing, or spending. Alternatively, they could be referring to the companies that many people count on to manage their capital.

In financial markets, the term “money management” is geܫnerally synonymous with big investment firms, or asset managers, taking people’s money and investing it. The biggest money managers in the world are BlackRock, Vanguard, and Fidelity. Among them, they oversee many of the largest, most well-known mutual funds and pension plans.

Article Sources

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Sovereign Wealth Fund Institute. “.”
BlackRock. “.”
iShares. “.”
Vanguard, via Internet Archive. “.”
Fidelity. “.”

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