Choosing a Wealth manager

Whether for retirement, college fees, school fees, foreign trips, or the purchase of luxury car wealth managers play a crucial role in planning one’s finances.

Wealth managers not only manage the finances of any High net worth individual (HNI), but also have a dynamic role in plans of finances and payments of other engagements of an HNI. Wealth management addresses portfolio construction, active and passive investing styles, alternative investments, managing risk and return, developing investment policy statements, and having the capabilities to fully understand and construct portfolios as fiduciary for the client.

Wealth management grows funds in a very sophisticated way according to the needs of their clients.  It takes some significant time for wealth managers to learn the psychology and demands of their clients and part their expertise and skills to empower their clients’ portfolios to grow and nurture. Wealth management is delivered through a holistic and multidisciplinary approach of the team to understand the insights of their clients.

From the last 2 decades, wealth management has grown significantly and has become a full-time profession which needs monitoring, evaluation and decision-making for selection of appropriate funds for the client. India has witnessed various swings in markets right from the scams of Lehman brothers in 2008-2009 which shook on the international markets only to see a rise post changes in various financial strategies and political winds post 2016. India witnessed stability in markets during the pandemic times of Covid 19 and post that a significant rise in markets.

From the above cycle of markets, wealth managers have made switches, redemptions, and transfers in their clients portfolios, resulting to have made good profits for their clients who stood rock solid during the downfalls and corrections of the markets post various turnkey events in the country. Their portfolio did not erode but grew significantly after various events which turned on to be positive for them with a good wealth manager.

It is imperative to mention that wealth managers are not deities and they too go through some incorrect decisions however, they should have the wisdom to balance their decision with proper hedging of funds and justify the purchase or sale of any particular funds.

The selection of a wealth manager is very crucial in your idea to grow your portfolio. Your wealth manager should consider your risk appetite and goals towards the investment. You should look towards a wealth manager who shall jewel with your thoughts and ideologies. One should also respect the decisions and choices of their wealth managers’ funds considering his/her expertise in this field of dynamic markets and stand by his call on purchases and exits. A wealth manager considers every aspect of investments, may be lump sum or a Systematic investment plan (SIP) even though the net worth of the client is high. HNI should not go on hearsay calls during the purchase of investments and look at the corpus and past returns of the funds but should aim in investing money in funds which have not yet grown to its potential. For such decisions call of the wealth manager plays a significant role provided one should trust. (These are value funds)

Wealth management is a very skilled profession which requires lots of learning, expertise and wisdom from their experience. One should look for long-term relationship with the wealth manager as he/she shall provide you guidance and ensure you exit at the right point without experimenting with your predictions of markets.

Article by Mr. Swanand Pandit, BCOM, LLB, PGDBM . Email-

Leave a Comment

Your email address will not be published.

Scroll to Top