If you have money sitting in a bank right now then the chances are it is earning you very little in the way of a return because interest rates are at historically low levels so it might be time to consider the services of a wealth or asset management company who can invest on your behalf in various areas and bring returns that could be far in excess of traditional baking.
Of course there is no guarantee that your returns will be higher with such companies and it is even possible for the value of your investment to fall but there are a number of reasons why it is better for you to use one instead of trying to buy and sell shares yourself.
It can take an awful lot of time to thoroughly research equities, commodities and other investment vehicles but a wealth management company have staff who can do all of this for you, leaving you to focus on other important matters in your life.
Things can also move very quickly in the markets especially when it comes to breaking news and if you are not on top of this throughout the day then you might miss opportunities to buy or sell at the optimum prices.
2. Knowledge & Expertise
You can’t simply start investing without knowing the metrics and signals that lead you towards one option and help you avoid others. Without this expertise, you might as well be picking names out of a hat to decide how to invest.
Asset management companies are full of people with experience and knowledge and not only do they know the right ways of choosing investments, they can also build a balanced portfolio that is weighted in such a way as to maximise your chances of a high return.
3. Access To Markets
Not all markets and trades are available to the public but some asset management companies can bring you these otherwise hidden opportunities. An example of this would be actual trades of physical commodities that involve large sums of money. Sure you can get some exposure on the commodity markets in terms of futures and options but to actually be part of a physical trade can bring its advantages.
Whichever company you choose to manage your wealth, make sure that they are authorised and regulated by an independent organisation such as the FSA or the equivalent in the company in which they operate (a full list of which can be found here).
As stated earlier, there is an element of risk in any investment and you might get out less than you put in so you have to be aware of this before you think about investing.
This article does not constitute financial advice. Always perform your own research before investing or agreeing to any asset management contracts.