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Discussing asset and liability management

For any business, it is very important that they indulge in taking certain amount of risk from time to time. How else will they grow?

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Discussing asset and liability management

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  1. Discussing asset and liability management www.avendus.com/india

  2. What is it? For any business, it is very important that they indulge in taking certain amount of risk from time to time. How else will they grow? These risks can be in terms of so many different things. It could be about launching a range of new product or service, investing in a new working place or just acquiring another new business. But for a business owner to be confidently able to do that, it is important to have a good backup of funds with them and this what asset and liability management helps you do. www.avendus.com/india

  3. The interest margins In this, a lot of focus does lie in management of the overall interest margin. It is, however, very crucial to know that it has to be a very integrated approach that is followed by deciding on the asset type that one should invest in, the size of the asset in terms of money etc. One of the many core factors that one needs to consider is about deciding the right kind of asset mix to invest in. What happens in asset and liability management is that the maturity and rate of interest of the asset decides how much you’ll yield. www.avendus.com/india

  4. Different methods Once you hire an asset management company for your business, you will also find information about the different kinds of funds that your business must invest in. The different kinds of funds are mutual funds, ESG funds in India, SIPs and so on. There are different ways of understanding and determining their credibility. One way to do this is through gap analysis, analysis of the duration and the value-at-risk method and even risk management. These tools are basically designed in order to help the wealth and asset managers in forming a plan. www.avendus.com/india

  5. The gap and duration analysis method When we talk about asset and liability management, the gap that we talk about is the excess of assets with are sensitive on interest over liabilities that are sensitive on interest and vice versa. It is when this gap amounts to zero that we say the assets and the liabilities have become equal. In this, the result of the changes in the interest rates over the asset and liabilities value is scrutinized and restructured. This again is done in terms of cash flow and average maturity. www.avendus.com/india

  6. Risk and risk management Here, the concept that is usually given a go ahead is that of market and market-selling. And how is this approval given? This comes basis the yield and maturity ratio. When we talk about risk management, the profile of risk and everything related to the assets and liabilities is gauged so as to make sure that fall into proper levels of risk. It is also made possible through the help of certain aging mechanisms. www.avendus.com/india

  7. Thank You www.avendus.com/india

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