Fund management Assignment Example | Topics and Well Written Essays - 2250 words

Fund management - Assignment Example My discussion will dwell on wealth management and private banking. I will use Switzerland as my model country (Barber 97). Wealth Management Wealth management is part of a business enterprise’s financial aspect. It denotes the careful utilization of resources of a company for the purpose of maximizing output and generating profits continuously. It constitutes financial advice and tax services at one fee. Estate planning can be a component of wealth management. These services can only be offered by financial institutions such as banks and brokerage firms. Trust companies also specialize in wealth management. Based on an individual’s financial goals and objectives, wealth management is a way of investing assets and planning of one’s estate (Anastasios 17). Private banking is used interchangeably with wealth management because wealth management can be viewed as a form of private banking. Private banking means that the financial services offered are not determined by public rules and regulations. It is the owners who formulate and regulate the rules that concern their financial services. Some institutions are now offer wealth management lessons because it has become a key aspect of modern day banking. This aspect is the future for modern day banking. We are noticing the creation of microfinance corporations around the world. This is an indication of the importance it is playing in many economies around the world (David 28). Wealth Management and Private Banking Switzerland For a long time, Switzerland has become the world’s number one destination for investors from all walks of life. This has made the country amass a lot of wealth in the services rendered. The country is one of the most stable economic nations of Europe. To add to its increasing tourist attraction sites, Switzerland’s fortunes are really in a meteoric rise. The major factor that has contributed to this is the country’s policy of neutrality and the fact that many languages are spoken in the country. This has attracted many investors. The degree of neutrality means that the Swiss banks have a policy of not investigating funds deposited regardless of the source of the funds. Unlike other European banks whereby any money deposited has to be vetted to determine the source, this is not the case with Switzerland (Douglas 15). It is no doubt, therefore, that even corrupt leaders from third world countries all run to deposit the money in Swiss banks knowing that none of their dirty will be investigated to determine the source. Since historical times, private banking has been a success in Switzerland. Formerly, investors with a high net wealth worth
million were allowed to invest in the banks. However, a change has now occurred which has allowed even the common man to invest in the Swiss banks. Even though this continues to take place, the Swiss private banking sector keeps targeting high ranking investors around the world. These investors in turn prefer to keep their wealth in this country. Wealth management and private banking in Switzerland is a sector that has undergone enormous growth in the 5 years that have passed or so. This is due to initiatives that have been undertaken by the Swiss banking sector. Today the sector stands as one of the best in Europe (Hans 142). There has been a change in the legislative laws of Switzerland that have done away with the traditional system of health management and private banking. This change started occurring about ten years ago. It was a brilliant