If you’re like many people, you probably don’t have the time, expertise or desire to manage your own investment portfolio. That’s where investment managers come in – they are professionals who help individuals and businesses grow their assets through smart investing. But with so many investment managers out there, how do you choose the right one for you?
1) Look For The Generic Pitch
When you’re talking to an investment manager, pay attention to the language they use. If they make a lot of promises or guarantee high returns, be wary – there’s no such thing as a sure thing in investing. A good investment manager will give you a realistic assessment of the risks and potential rewards involved in any given investment.
Generic pitches are a huge red flag – if an investment manager can’t be specific about what they can do for you, they’re probably not worth your time.
2) Ask For References
Any good investment manager will be happy to provide references. Talk to people and find out what their experience with the manager has been like. Are they happy with the returns they’ve gotten? Did the investment manager work well with them personally?
References are a great way to get an idea of how an investment manager works in practice. If most of the references are negative, it’s probably not a good sign.
When choosing an investment manager, it’s important to do your research and ask lots of questions. The more you know about what to look for, the better equipped you’ll be to make a decision that’s right for you.
3) Check Their Compliance Record
All investment managers are required to follow certain regulations. These regulations are in place to protect investors from fraud and other unethical practices.
Before hiring an investment manager, check their compliance record with the applicable financial bodies. This will tell you if they’ve ever been disciplined for violating industry rules.
A clean compliance record is a good sign that an investment manager is legitimate and ethical.
4) Consider Comparing Them With Other Investment Managers
Once you’ve narrowed down your list of potential investment managers, take the time to compare them side-by-side. Look at their experience, fees, investment strategies, and references.
Comparing investment managers is a great way to get a better sense of who would be the best fit for you. By reviewing gips performance standards of various investment managers, you’ll have a solid tool for reviewing each manager’s performance.
5) Ask Questions
No matter how much research you do, there will always be questions. Don’t be afraid to ask the investment manager anything and everything that’s on your mind.
The more questions you ask, the better informed you’ll be about their services. This is an important decision, so don’t rush it – take your time and make sure you’re making the right choice.
In conclusion, when choosing an investment manager, be sure to look for a realistic pitch, good references, a clean compliance record, and to compare them with other investment managers. Ask lots of questions so you can make an informed decision. There is no reason why you should risk your hard-earned living by investing with someone you don’t trust.