Asset management for smart gird is still at a preliminary stage because its mathematical model lags behind the research of smart grid technology. In this paper, we analyze the theory of life cycle asset management within cutting-edge technology in smart grid, and present a complete and mutual management model. Furthermore a brief analysis of eight indicator, which suggested by our complete scientific index system of advanced asset management, are listed. The indicators make up of the basic expression of predictable benefit that can help to optimize the asset operation in smart grid. Finally, a simple comparison between the management model based on life cycle asset management and others models is made. The advantages and shortcomings are raised for the research.