Becoming successful in business is not a "my way or the highway" type of deal. Finding the perfect investment firm to manage your assets shouldn't be either. Because there are so many industries, so many investors, and so many different strategies of success, picking the right asset management team can be an overwhelming task. However it doesn't have to be.
You can find the right team to manage your physical assets by evaluating three essential areas of any investment firm. These essential areas are philosophy, process, and performance.
Investment philosophy is extremely important in choosing the right asset management team. Different investors have different philosophies on asset management. Some investors focus on small assets with high growth potential. Other investors focus on large assets that are extremely valuable. It is up to you to decide which investment strategy best suits your needs.
Next to philosophy on asset management is process. How does your asset management team approach investing? Are portfolio management decisions made by a single person or by a collective group? What criterion is being used to base asset management decisions off of? Is this criterion being researched by competent experienced analysts? The answers to these questions give valuable insight into the processes used by your asset management team.
The last essential area you should be aware of when choosing a firm to manage your assets is performance. Look at the performance record of your asset and investment manager. Find out the risk levels and earning potentials of your portfolio and compare your findings with the performance level of your investment manager.
Does your asset manager have a performance history of taking mid-level risks that have optimized earning potential for previous clients? Does she believe that a well diversified blended portfolio is the best way of maximizing your investment for the long haul? Is your financial advisor available to answer your questions when they arise?
Understanding what you are looking for in an asset management team and balancing that knowledge with an investment firm's philosophy, process, and performance will help ensure that your asset management team has your best interests at heart. By doing this basic research and examining these three areas, you can rest assured knowing that your assets are in capable hands.