Managing your investment portfolio proficiently asks for keeping track of your investments. With a periodical analysis of your investment portfolio, careful study of the market, and good tax benefits, one can stay aligned with your long-term goals.
Nevertheless, you need considerable knowledge, strong commitment, and long-term objectivity to manage your portfolio, which is tedious and time-consuming. Here comes the discretionary portfolio management service, where you can have an expert making an investment decision for you.
You can find an investment portfolio counselor offering you a personalized investment service, aligned with your goals related to your business, family, and retirement.
- 1 What is discretionary portfolio management and how does it work?
- 2 What are the benefits of discretionary portfolio management?
- 3 Free yourself from making decisions
- 4 Cost is affordable
- 5 Access to better investments
- 6 More convenient
- 7 Updated and well-informed
- 8 Investment approach aligned with your goal
What is discretionary portfolio management and how does it work?
Investment management in which an expert makes the buying and selling decisions of your portfolio is called discretionary portfolio management. Here the investment or asset managers exercise their discretion to make investment decisions. You should find investment banks and companies offering discretionary portfolio management services to clients who trust them, for they have professionals who are experienced and suitably qualified for the job.
What are the benefits of discretionary portfolio management?
With discretionary investment management service, you can enjoy several benefits like:
Free yourself from making decisions
You can free yourself from the task by allowing well-qualified asset managers to make everyday investment decisions. With considerable experience and knowledge, they can arguably make better decisions on investments, which are dependent on the vagaries of. The stock market Further, you can use your time to deal with matters that require your most attention by delegating. The investment-decision task to a competent portfolio manager.
Cost is affordable
When comparing the charges incurred for any other types of investment management, the fee paid for the discretionary investment management service is lower. Asset managers generally charge a certain percentage of the management fee for the assets under their administration.
When the asset under the stewardship of the investment manager grows, he or she gets a higher amount of fees, which aligns with the client’s interest. Unlike the transaction-based investment management service, discretionary portfolio management reduces the manager’s temptation to churn out the investment accounts to get more fees.
Access to better investments
By engaging a licensed investment manager to manage your portfolio, you get an opportunity to access better investments. There is a good chance that you will need some type of financing to fund your business.
If you want to become an Accredited Investor (AI), you have to meet the criteria laid by the Monetary Authority of Singapore and have the bank treat you as an AI. Most investors find it hard to meet this requirement, and they approach a portfolio manager, who can provide access to such investments.
Deciding on particular investments is at the discretion of portfolio managers, who need not contact you for every investment transaction. It will help them make informed decisions when profitable investment opportunities arise. You don’t find new opportunities coming every time.
Updated and well-informed
Portfolio managers have easy access to the current market research, analysis, and report, and investment themes, which can help them. Act quickly on new opportunities and events.
Investment approach aligned with your goal
When changes are effected to your portfolios by buying or selling stocks, investment managers will inform you and review yours. Objectives and situation to make sure that the investment approach aligns with your long-term goals.
In short, you can leave your portfolio management to the experts, who will act in your interest, keeping in mind. Your personal situation, aspirations, objectives, and attitude towards risk.