Top 4 Financial Tools For Your Asset Management

The basic meaning of asset management is to maintain the existing assets in the most profitable manner possible to procure the best return. Asset management is very common term used in the financial world to describe agencies and professionals who manage investments on behalf of others. There are many financial tools that people use to get a better knowledge about their investments and the options that are available to them.

Opportunity Cost:

To properly manage your assets you should have a brief idea about the opportunity cost concept. This term is used to define the minimum return that is guaranteed to be received by you if you keep your funds in the bank. Investors usually want to receive a much greater return than this so they take the help of professionals and invest in mutual funds or trade directly in the share market.

1. Higher Return Calculator:

People who invest in mutual fund should know that the return is based on how the market performs. The basic concept of mutual fund investment is that you invest your money in a company and the investment managers of that company will manage your funds on your behalf. They will utilise your funds to invest in a combination of portfolios. If the market price of the portfolio rises then you will receive high amount of return but the reverse is also possible. Risk is always involved when you are investing in a portfolio. But if you don’t have a good knowledge of shares then it is advisable to invest in mutual funds as it is less risky than investing directly into share market.

2. Tax Calculator:

Tax calculator is one of the most common tools used by people to calculate what amount of tax they are liable to pay to the government. This tool help you make the accurate calculations and into consideration the deductions that you can avail under Chapter VIA of the Income Tax Act, 1961.

3. Systematic Investment Plan (SIP) Calculator:

SIP calculator is a very efficient financial tool that helps you to calculate the future return that you will get if you invest small amounts of money every month or year in a systematic manner.

4. Capital Gains Calculator:

This financial tool is widely used to calculate the capital gains taxes that arise due to sale of investments after a period of time. Accurate calculations can be done with the help of this tool and your tax liability will be computed.

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