Money Management

What is 'Money Management'

Money management is the process of budgeting, saving, investing, spending or otherwise overseeing the capital usage of an individual or group. The predominant use of the phrase in financial markets is that of an investment professional making investment decisions for large pools of funds, such as mutual funds or pension plans. Money management can also be referred to as "investment management" and "portfolio management."

BREAKING DOWN 'Money Management'

Money management is a broad term that involves and incorporates services and solutions across the entire investment industry. In the market, consumers have access to a wide range of resources and applications that allow them to individually manage nearly every aspect of their personal finances. As investors’ increase their net worth they also often seek the services of financial advisors for professional money management. Financial advisors are typically associated with private banking and brokerage services, offering support for holistic money management plans that can involve estate planning, retirement and more.

Investment company money management is also a central aspect of the investment industry overall. 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, endowments, foundations and more.

Services and Solutions

Personal Finance Apps

In the growing financial technology market, personal finance apps exist to help consumers with nearly every aspect of their personal finances.

Mint

Mint is a free personal finance, money management app developed by Intuit. It allows consumers to connect all of their personal financial accounts, providing a comprehensive dashboard for personal money management. Mint also includes a free credit score as well as resources and tips for managing consumer credit.

Acorns

Acorns is a personal investment app integrated with a consumers’ spending accounts. It rounds up purchases and invests spare change in low-cost exchange-traded funds (ETFs).

Top Money Managers by Assets

Global investment managers offer retail and institutional investment management funds and services encompasses every investment asset class in the industry. Two of the most popular types of funds include actively managed funds and passively managed funds replicating specified indexes with low management fees.

The list below shows the top ten global money managers by assets under management ($M) as of December 31, 2016.

1. BlackRock, U.S., $5,147,852

2. Vanguard Group, U.S., $3,965,018

3. State Street Global, U.S., $2,468,456

4. Fidelity Investments, U.S., $2,130,798

5. Allianz Group, Germany, $1,971,211

6. J.P. Morgan Chase, U.S., $1,770,867

7. Bank of New York Mellon, U.S., $1,647,990

8. AXA Group, France, $1,505,537

9. Capital Group, U.S., $1,478,523

10. Goldman Sachs Group, U.S., $1,379,000