Selecting the right Portfolio Manager

What is Investment ?

It is essential for every individual to keep aside some amount of his income for a secure future. The art of assigning some amount of money into something, which would benefit the individual concerned in the near future, is called as investment.

Why Investment ?

  • Investment helps an individual to save money for the times when he would no longer be able to earn.
  • Investment makes an individual’s future secure and stable.

Where to Invest ?

An individual can invest in any of the following:

Gold/Silver
Mutual Funds
Shares and Stocks
Bonds
Property (Residential as well as commercial)

How to Invest ?

An individual should not invest just for the sake of investing. One should understand as to why he needs to invest? Don’t just invest in any plan available in the market. Decide the best plan for yourself as per your income, age and financial requirements. One must go through the terms and conditions before investing in any market plan.

Who decides where to invest ?

How would one come to know where to invest and where not to invest ?

How would an individual decide which organization’s share would yield him the best results in the near future and which should be sold off immediately ?

Here comes the role of a Portfolio Manager.

Who is a Portfolio Manager ?

An individual who understands the client’s financial needs and designs tailor made investment solutions with minimum risks involved and maximum profits is called a portfolio manager.

A portfolio manager invests money on behalf of the client in various investment tools such as mutual funds, bonds, shares and so on to ensure maximum profitability.

It is the responsibility of the portfolio manager to choose the best plan for his client as per his financial requirements, income and ability to undertake risks.

How to choose the right portfolio manager ?

Portfolio managers charge a good amount of money form their clients for their services. One must be careful while selecting the right portfolio manager.

  • Make sure the portfolio manager you choose has complete market knowledge and knows about the existing investment plans and the various risks involved. Taking the assistance of someone who himself is not clear about the market policies does not make sense.

  • A portfolio manager should be trustworthy. You will find all types of portfolio managers in the market - cheat, dishonest, unprofessional. An individual must hire the best portfolio manager who understands the market well and can guide him correctly. Don’t give money to someone who does not have a good background. You never know he might run away with all your hard earned money. Ask for his business card. Check his reputation in the market.

  • An individual must not blindly trust his portfolio manager. Make it a point to read the related documents carefully before investing. A/C payee cheques must be issued and one should never sign any blank document.

  • A good portfolio manager should be transparent with his client. One should not try to confuse his client by using complicated terminologies and professional jargons. The various plans must be explained to the client in the easiest possible way.

  • Select a portfolio manager who does not have any personal interests in your investing in any particular plan. He should be able to help you decide the best plan available in the market.


❮   Previous  Article Next  Article   ❯


Authorship/Referencing - About the Author(s)

MSG team comprises experienced faculty and professionals who develop the content for the portal. We collectively refer to our team as - “MSG Experts”. To Know more, click on About Us. The use of this material is free for learning and education purpose. Please reference authorship of content used, including link(s) to ManagementStudyGuide.com and the content page url.