# Money Management Explained: Top Global Money Managers by Assets

![Money Management: The processes utilized to record and administer an individual’s, household’s, or organization’s finances.](https://www.investopedia.com/thmb/eFsBq-KnAjBqMDBim-btbj0a8xg=/1500x0/filters:no_upscale():max_bytes(150000):strip_icc()/moneymanagement.asp-final-839e000fcc374d43ace4b4f2e9e45ab6.png)

*— Investopedia / Julie Bang*

## What Is Money Management?

Money management involves budgeting, saving, investing, and spending, whether for individuals, households, or organizations. This article explores the significant role of money managers, particularly in investment contexts, highlighting the top firms like BlackRock, Vanguard, and Fidelity by their assets under management.

### Key Takeaways

*   Money management involves budgeting, saving, investing, and spending to oversee individual or group capital usage.
*   It also includes investment and portfolio management, often handled by financial advisors or platforms.
*   Poor money management can lead to financial strain, while proper management supports financial well-being.
*   BlackRock, Vanguard, and Fidelity are the largest global money managers by assets under management.
*   Personal finance apps help consumers manage finances, offering accessibility to financial planning tools.

## Exploring the Basics of Money Management

Money management is a broad term that involves and incorporates services and solutions across the entire investment industry.

People can use many resources and apps to manage all parts of their [personal finances](https://www.investopedia.com/terms/p/personalfinance.asp). As investors increase their net worth, they also often seek the services of [financial advisors](https://www.investopedia.com/terms/f/financial-advisor.asp) for professional money management. Financial advisors usually work with private banks and brokers, helping with estate planning, retirement, and more.

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

Managing money is a key part of the investment industry. Investment company money management offers individual consumers investment fund options that encompass all investable [asset classes](https://www.investopedia.com/terms/a/assetclasses.asp) in the financial market.

They also help institutional clients by managing retirement plans, [endowments](https://www.investopedia.com/terms/e/endowment.asp), and foundations.

## Leading Global Money Managers by Asset Size

Global investment managers provide funds and services for both [retail](https://www.investopedia.com/terms/r/retailinvestor.asp) and [institutional](https://www.investopedia.com/terms/i/institutionalinvestor.asp) clients. Two of the most popular types of funds include [actively managed](https://www.investopedia.com/terms/a/activemanagement.asp) funds and [passively managed](https://www.investopedia.com/terms/p/passivemanagement.asp) funds. Passively managed funds copy specific indexes and often have low fees.

Below are the top global money managers by assets under management (AUM):

### BlackRock Inc.

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

BlackRock’s [exchange-traded fund (ETF)](https://www.investopedia.com/terms/e/etf.asp) division, called iShares, has about $2.5 trillion in AUM globally, amounting to roughly 29% of the group’s total [assets](https://www.investopedia.com/terms/a/asset.asp). 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 [John C. Bogle](https://www.investopedia.com/terms/j/john_bogle.asp) in 1975 in Valley Forge, Pennsylvania, as a division of Wellington Management Co., where Bogle was previously chair.

Since its launch, Vanguard has grown its total assets to beyond $8 trillion, becoming the world’s second-largest [asset manager](https://www.investopedia.com/terms/a/assetmanagement.asp) 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](https://www.investopedia.com/terms/e/equityfund.asp), foreign equity, [sector](https://www.investopedia.com/terms/s/sector.asp)\-specific, [fixed-income](https://www.investopedia.com/terms/f/fixedincome.asp), [index](https://www.investopedia.com/terms/i/indexfund.asp), [money market](https://www.investopedia.com/terms/m/moneymarket.asp), and [asset allocation](https://www.investopedia.com/terms/a/aaf.asp) funds.

## What Is the Difference Between a Money Manager and an Asset Manager?

As implied in their respective names, money managers manage money and asset managers manage assets. However, as assets essentially represent money, 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, and spending. With the right balance, these principles can help individuals to maximize their financial well-being.

## What Is the Goal of Money Management?

The ultimate goal of money management is to maximize wealth.

## The Bottom Line

Money management encompasses the processes of [budgeting](https://www.investopedia.com/budgeting-4689726), saving, investing, and spending, serving as a key aspect of both individual financial health and the financial market at large. On a personal level, effective money management can help avoid cycles of debt and financial strain, using tools like financial advisors and personal finance apps.

On a broader scale, large investment firms like BlackRock, Vanguard, and Fidelity manage substantial assets, providing both retail and institutional investment management services. These firms play a pivotal role in the financial market, offering a range of funds and investment solutions that collectively manage trillions in assets. Understanding money management can empower individuals and organizations to make informed financial decisions and maximize their wealth

> **Article Sources**
>
> 1.  Sovereign Wealth Fund Institute. “[Rankings by Total Managed AUM](https://www.swfinstitute.org/fund-manager-rankings/asset-manager).”
>     
> 2.  BlackRock. “[Introduction to BlackRock](https://www.blackrock.com/sg/en/introduction-to-blackrock).”
>     
> 3.  iShares. “[Who We Are](https://www.ishares.com/us/about-us/who-we-are#armando-senra).”
>     
> 4.  Vanguard, via Internet Archive. “[Fast Facts About Vanguard](https://web.archive.org/web/20220106041731/https://about.vanguard.com/who-we-are/fast-facts/).”
>     
> 5.  Fidelity. “[We Are Fidelity](https://www.fidelity.com/about-fidelity/our-company).”