Frequently Asked Questions –
What is investment management?
As a high net worth individual (HNWI), there are many reasons to use professional investment management services. In this article we look at the basics of investment management, and how to get started.
Investment management is the professional handling of various assets within an investment portfolio, such as shares, property or bonds. Investment management is done with a specific financial strategy and goal in mind, which is designed to benefit the investor financially. It may also be known as wealth management or portfolio management.
Investment management can refer to trading assets, and putting strategies in place to acquire or dispose of these assets. It may also include banking, budgeting and tax services.
Why is investment management important?
As a high net worth individual (HNWI), there are many reasons to use professional investment management services. You may be looking to:
- Grow your wealth;
- Keep your funds secure;
- Reduce income tax;
- Start earning additional income;
Life is unpredictable and wealth can be fleeting. However, with the right wealth management services in place, you can protect your assets and grow your investments exponentially. Investment management can help you achieve your short- and long-term financial goals, whether that means a higher income, a comfortable retirement, or a legacy that will benefit your family for future generations.
Key benefits of investment management
Working with an investment manager can help minimise the risk of investment decisions while maximising the rewards. Professional investors can analyse proposed investments thoroughly, with expert insight into their returns in the future. Despite this, investing still carries a degree of risk and those choosing to invest can see the value of their investment decrease as well as increase.
Investors can be valuable resources who will strategically make the best possible investment decisions with your interests in mind. You will be able to see the measurable results of these decisions.
How to choose an investment manager
It's predicted that there will be 7.7 million more HNWIs in the world by 2023, which means the global wealth management industry will be growing rapidly. What should you look for when deciding on the right investment manager to work with?
There are four key factors you should consider – industry insiders typically talk about "the four Ps":
- People – Does the team include experienced fund managers who will keep your priorities in mind?
- Philosophy – How does your investment manager think about investments? How does their philosophy drive their decisions, and what are the benefits behind it?
- Process – How does the wealth manager implement their investment philosophy?
- Performance – What is the outcome/ success of the philosophy and process?
If you're looking to protect and grow your finances, the wealth management professionals at Arbuthnot Latham can help you achieve what's most important to you. Speak to our team today, and start building a relationship that helps you achieve your goals.