How To Tell If An Investment Management Firm Is Working For You

Most financial and wealth management firms or advisors state that they’re putting their client’s interests first. It’s a common selling point and sounds very convincing to many, encouraging them to invest with these investment firms. However, not all investment management companies keep their promise.

The priority of many investment firms is to make sales and profit. To achieve that, they may compromise on their promise to always put their clients first. So telling if an investment management firm is true to its word can be challenging. Interestingly, there are several factors to consider when choosing investment management firms. Here are three key factors that can help an investor determine if the investment firm has their interest at heart:

  • Set Honest Expectations
  • Answer Questions Thoughtfully
  • Cost Transparency Is Provided Before Any Commitment Is Required

Sets Honest Expectations

A key attribute to look out for when searching for investment management companies is checking for those that set honest expectations. It’s easy for many investment firms to talk a big game about their potential to deliver big returns when trying to make a sale. However, in reality, many lack the ability to match that promise.

Often, that’s because their promises are unrealistic, and clients demand outrageous profits. To be sure that the investment firm has its clients’ interests at heart, it must make realistic offers. Ensure that the investment firm is honest about its investment policies and the returns they offer.

Answer Questions Thoughtfully

Another indicator showing if an investment management firm cares about the client’s interest is the ability to answer questions thoughtfully. Private investment management firms know that individuals looking to invest their money have many questions. The ability to answer these questions thoughtfully and give the right responses shows how important the clients are to them.

A customer-centric investment management firm will address all questions directly, clearly, and honestly. Also, a good financial advisor ensures that clients don’t feel uncomfortable or regretful for asking questions.

Cost Transparency Is Provided Before Any Commitment Is Required

Cost transparency is among the biggest issues when choosing an investment firm. Therefore, it’s an essential factor to consider. Often, many investment firms will only quote their headline advisory fee in their proposals. This makes the offer seem low, thus making a good first impression. However, it’s only a part of the client’s total cost.

A client-centric investment firm will be transparent about the advisory fee and all-in costs before asking for a commitment. Interestingly, transparent investment firms can look expensive on the surface compared to competitors that are not. Nonetheless, their services are often more affordable.

Do you need a reputable financial firm offering reliable investment and portfolio management services? Contact us at Enriched Investing Incorporated. We are a team of well-trained, seasoned, and committed wealth managers devoted to freeing you from the worry of continually making investment decisions.

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