Why choosing a good asset management company is important?

If you consult with any of the top asset management companies in India today, you are bound to here many stories of investors’ panic selling when the market goes down and also of those investors that kept their patience at the time of crisis, did not sell their shares which also formed a major part of their assets, and reaped high benefits over a period of time. The difference between these types of investors is not just about their patience, but also the type of guidance that they have been receiving from their asset or wealth manager. Time and again, it has been said that market being down is an opportunity for investors to invest more (as the shares are cheaper) so that they can enjoy the gains at a later stage. However, unfortunately, some wealth managers fail to make their clients, the investors, understand this. Ultimately, the investor looses out on the profits that he or she would have gained only if they would have been guided and explained the meaning of remaining steady, properly. This brings us to the main point of this blog, the importance of having a good wealth manager. A wealth manager is not someone who you just hire so that they manage your wealth for you and ultimately give you good fruits. A wealth manager is more than just your wealth guide. For a wealth manager to churn our good results for your wealth, you need to trust them. But all this comes only after verifying that the wealth manager has produced good results for other clients in the past. Be it about long short funds in India, different types of mutual funds or any other financial portfolios, the wealth manager should explain the investors benefits and cons of each type of investment and lead them to a better progress and profit.