A wealth manager/advisor helps in structuring the products based on the client’s needs, the products range from Investments, Insurance, Real Estate, Pension etc. A wealth manager also helps in optimization of taxes, creation of wills and trusts etc – this helps the client achieve life goals. It also keeps the client financially protected from unforeseen events. A solid wealth management relationship should ideally last you a lifetime, so choosing the right wealth manager is very important.

wealth management

Below are some questions need to ask your wealth manager,

  1. How are you going to change my life? 

A good wealth manager creates a life plan which helps you achieve goals, while keeping your lifestyle stable. The planner creates a plan based on your present position, cash flows, lifestyle, risk management, net worth etc. and recommends suggestions or improvements to achieve all the goals.

2.   Are the assumptions made in your financial plan realistic?

Financial plans are created with a lot of assumptions like inflation, returns, life expectancy, cost estimates to the goals etc. An unrealistic or wrong assumption will lead to mismatch in the cash flows and may affect the goals.

3.  Suitability of the products

A wealth manager short lists the products based on the risk appetite and duration of goals. It is important that the wealth manager maintain consistency in returns – well diversified across products with proper research methodology. 

A wealth manager who is chasing returns or showing abnormal historical performance is to be observed, because it is impossible to generate higher returns continuously and keep note that higher the risk higher the returns

4. Standards, qualification, experience and team of the wealth manager

Higher standards provide a better quality of service than anything else out there. You must make sure that the quality of service you get is something that cannot be found anywhere else, at any price. 

A wealth manager is to be well qualified with a certificate like Certified Financial Planner or Investment Advisor. Experience helps to understand the client better and he can generate more solutions. Financial plan involves a lot of factors like investment products, insurance products, loans, real estate, wills and trusts etc., a single planner can’t be perfect in all the products so it is important to have a team behind the advisor.

5. Fee

fees

It is important to understand and discuss various fees charged to you. Most of the wealth managers charge hidden fees like upfront fee from the products, double charge of the fee from you and the product manufactures, higher execution costs etc.

Over-charge of fees impacts your return hugely over a long term period.

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Valid till - August 16, 2026

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Principal Officer - Aseem Sen Gupta
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