How To Choose an Asset Manager

Do you need to choose an asset manager but are unsure how to go about it? Have no fear! Choosing an asset manager may at first seem like a difficult process; however, with a few simple steps, it should be easy to do.

First and foremost, you must be very, very selective when choosing your asset manager. As you do when you purchase stocks: research, research, research. How is your asset manager's track record? What type of investing style does she have? Are your funds going to be diversified or will they all be placed in one basket? Asking these questions, among others, should get you pointed in the right direction. There are so many asset managing companies out there, it can sometimes be intimidating to even begin to make your selection.

Second, find out how exactly your funds are going to be diversified and how long you have to wait before you can expect a significant return.  Are your monies going into public or private ventures? You need to make sure that you - no matter how much experience you have in investing - play a crucial role in deciding where your hard earned money is going each month. As one can see with the Bernie Madoff Ponzi Scheme, it's very crucial to find out exactly how your cash is being invested. It's important that you look into the proposed companies' performance over time, and that you don't let greed get the better of you. You are not going to find a company that will get you 10% in a year. Rather, find out about the long term benefits of your investments and go from there!

Finally, go with your gut. More often than not, your gut feeling is often the right one. Feeling sketchy about a certain asset management group? No problem: move on. Don't convince yourself otherwise; it's a waste of your time and will likely be a waste of your money.  Simply move on to a different group and research this group thoroughly as well.  Continue the process until you are confident that you've found a company you can trust.

Clearly, you need to be prepared when you choose who is going to manage your hard-earned money. With the many multi-million dollar asset management companies out there, you have many options; although it will take some time on your part, this is actually a very good thing.  With such fierce competition, you will find an asset manager who meets your needs.  Having so many choices means you're more likely to find the one company which will cater to your investing needs and desires while still being responsible with your funds. Your personal asset manager should help you with this and more.


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