5 Ways To Select The Best Wealth Management Company

The most important financial decision that you make may have nothing to do with funds

It is choosing the right wealth management firm that significantly impacts your growth, preservation of your assets, and your family’s future. If you select an appropriate firm, they will stick with you over decades. Wealth management firms prepare a financial strategy as you grow, preserve, and ultimately pass on the wealth.

Selecting the ideal wealth management company can be tricky. You have to remember the following tips before comparing wealth management companies in India:

  1. Business model: You need to understand the business model they follow. Some factors that help you narrow down your decision are if they are public or privately held, their platform structure, their core business strategy, and how they manage the clients’ wealth. Today many firms offer wealth management services, but their primary business may be dedicated to other financial facilities such as banking, loans, and insurance. A company that solely focuses on wealth management and the model aligns with its objectives; it is likely to be beneficial for your wealth.
  2. Client servicing: Another essential to consider is how they serve the clients. You need to understand the client structure model as well. If your needs do not match with wealth management firms’ day-to-day model, you should not require their services. The other aspect to watch out for is the number of clients an advisor handles and their historical retention rate. A wealth manager who knows your family well will stay for long-term. They will be in a better position to understand your goals. A wealth management firm’s relationship with the client is an indication of the type of relationship they will maintain in the future.
  3. Are they managing investments or wealth? There is a vast difference between wealth management and investment management. Investment management is more towards asset allocation and returns. They are meant to measure the performance of individual assets and overall portfolio performance. Wealth management uses a more holistic approach. They do focus on asset allocation and return but also look at other aspects like after-tax return, long-term wealth preservation, and intergenerational wealth transfer. Wealth management companies in India are concerned about what you keep for the long-term.
  4. Investment approach: Another critical area to explore is the firm’s investment method concerning investment offerings, internal investment opportunities, access to outside managers, investment approach customised to client or model-based, utilisation of mutual funds or individual securities, and their historical investment performance. The answer to these factors will determine if they offer widespread investment opportunities and their associated costs. You would also need to understand the actual value of investment like account management fees, capital gains, and other such factors that impact your tax return.
  5. Understanding clients: The final area to assess is culture. You should gauge if the firm culture fits your needs. You can gain knowledge on this by assessing the firm’s investment philosophies, current portfolio and future vision, time to understand your business, personal goals, and aspirations, and ensuring you get what you want.

While opting for wealth management companies in India, one piece of advice stays – choose wisely.

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