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Top 4 Factors to consider while choosing a Portfolio Manager

Updated: May 9, 2023

How to choose a Portfolio Manager that’s best for you?

Portfolio manager

Saving your hard-earned income and Creating wealth is difficult. Managing and holding on to it is even

harder. That is where you need financial literacy and skills to be incorporated. What creates wealth over time? An understanding of the investment environment, asset allocation and alternative investment instruments for efficient asset management are key. Let us look at the differentiators that can make you succeed at it.

Today’s economic environment presents many challenges. And to achieve a financial goal one must have effective asset management. Assets Management has three important pieces to look out for:

Every investor has a primary motivation to grow wealth to achieve a goal or range of goals. There are important approaches that work. One of them is asset management, more commonly called financial management. It is a systematic approach of developing, operating, maintaining, upgrading, and disposing of assets in the most cost-effective manner, usually performed by Investment experts on directing clients' wealth or investment portfolios on their behalf to achieve financial goals. It is a coordinated activity of an organization to realize value from assets.

Now, to achieve this goal one must be a well-qualified financial expert with a thorough understanding of valuation, finance, economic variables, political scenario, and research over the micro and macro factors. Sounds Backbreaking? Well, it is! To help investors overcome this time-consuming complex process there are Portfolio managers around you. A portfolio manager has to be very efficient at allocating investment given the investors’ risk-return appetite.

Here are some criteria that you should be looking for in an asset manager;

  1. What is the Business Model adopted: A firm whose focus is wealth management, and whose business model is aligned to match the objectives of its clients, is likely to be a better steward of your wealth. A word of caution: Look at someone specialized in only Wealth management, as others like Banking + Wealth may have different objectives.

  2. How do they Serve Their Clients: The client service model of a wealth management firm provides a good indication of the type of client relationship the firm intends to foster. Trust and Transparency are a must!

  3. What is the Investment Approach: With time your goals may evolve. A flexible investment strategy is a must to meet these goals with time. Hence, regular review and rebalancing are required to maintain portfolio quality and keep up its performance.

  4. Does your Portfolio manager understand you: You and your Asset Manager must be the right fit! Determining if your manager is the right fit for you is more art than science. Some questions to ask include:

  • Are your investment philosophies aligned?

  • Does he/she understand your current portfolio and your vision for how to grow it?

  • Have they taken the time to understand your business, personal goals, and aspirations?

  • Are they as invested in seeing you meet those goals as you are?

  • Are you getting what you want or submitting to what they have?

Choosing the right Portfolio Manager can significantly impact the growth and preservation of your assets and your family’s financial future. Selecting a manager can be one of the most important decisions you make.


Take charge of your investments and ensure their growth - check your portfolio health today!

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