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3 benefits of using an asset management firm

13th September 2017 Print

With the latest CPI figures for the UK revealing that inflation had soared even higher to 2.9%, it is clear that the cost of living is continuing to rise at a disproportionate rate to real wages.

This make the challenge of building wealth even harder, meaning that you will need to make your money work as hard as possible if you are to build financial security in the future.

An asset management firm can help you to achieve this objective, by presenting you with unique opportunities and enabling you to make informed fiscal decisions. Here are three precise benefits of partnering with an asset management firm:

1. Access Services That Have Been Developed by Investors

If you have ever heard of social trading, you will know that this is a concept that enables investors to share successful strategies with others. 

The same principle can be applied when seeking out asset management firms, as the most successful service providers tend to have been established by investors with years of experience. Sanlam offers a relevant example of this, as its strategies and products have been developed by investors and tailored to suit the contemporary financial world.

This is a key consideration when looking to manage your hard-earned assets, as it can afford you access to cutting-edge insight and truly informed decision making.

2. Reach Out to International Markets and Investments

Asset management firms have often spent years developing their infrastructure, as they strive to broaden their product range and afford their clients access to a host of international markets and asset classes.

This is something that you would be foolhardy to ignore as an aspiring wealth builder, as you can successfully leverage this to create a diverse and lucrative portfolio of assets. 

Accessing international markets and stocks can be particularly beneficial from the perspective of diversification, while the range of assets that you can target also enables you to optimise your returns at any given time (regardless of the prevailing geopolitical climate).

3. The Diversification of Risk

Risk management is crucial when managing your funds and assets, but this can be hard to do as a relatively inexperienced financial trader. Asset management firms are well-placed to help you achieve this aim, however, as their strategies are designed to minimise risk while optimising opportunity for clients.

Diversification is central to this, as asset management firms can help you to create a balanced and efficient portfolio that minimises risk over a sustained period of time. When aligned with professional management, this can offset the risk of any investment and allow you build incrementally towards your future.