Strong Investments come in all shapes and forms. For some people, investing is at the very heart of what they do – angel investors who apply their expertise to passion projects in those very early stages of development or peer-to-peer lenders who tolerate a high level of risk for a (potentially) very high pay-out. At the other end of the spectrum are people for whom investing remains something of a mystery – and, often, a daunting one at that.
But you don’t have to fall into one of two camps – you don’t have to choose between embracing investment on a professional level or steering clear of it entirely.
For many people, discretionary fund management (DFM) is a much more attractive prospect than building a diverse portfolio of investments on their own. It’s something we recommend to so many of our clients – clients who know that the mark of a good investment isn’t lucky timing or a steely heart and head for risk, but taking an approach that fits with their lifestyle, their finances, and their plans for the future. As trusted independent financial advisors, we have access to the whole of market when selecting an appropriate discretionary fund manager for clients looking to maximise their portfolios without needing to invest time and attention that they simply don’t have.
What is Discretionary Fund Management?
In a nutshell, it’s a service whereby your investment portfolio is overseen and managed by someone else – a professional investment team who can make investment decisions on your behalf.
The right advice is pivotal to any investments and savings strategies, and at Perennial Wealth we are diligent about getting to know your profile as an investor – the type of risks you’re willing (or not willing) to take – and draw on our close understanding of market conditions to ensure your portfolio remains suitable.
The Main Benefits of Discretionary Fund Management
There are a lot of different reasons why investors choose to pass management of their investment portfolios over to a third party. While the strength of that decision depends entirely on the quality and expertise of the person or team they’ve turned to, there are some key benefits that shape the best discretionary fund management services.
Investing can be a full-time pursuit. Most of us don’t want it to be but, if you’re really looking to maximise your efforts and get the most out of your longer-term investments, the time demands of a growing portfolio can quickly start to consume your personal life. Even then, if you’re lacking experience or confidence, seeing a compelling return can be tricky.
Discretionary fund management takes that burden off your shoulders. It means that, whatever life throws at you, your savings and investments are being handled by expert hands, and not left to gather dust – or worse.
It’s a question of delegating timely demands to someone else – someone who knows exactly what your expectations are. Most of us aren’t passionate about investing, but do want to reap the financial rewards.
Quick responses to market changes
Most people keep relatively up to date on the big market changes – rising inflation and how it affects purchasing power, for instance, which has been a particularly pressing issue over the last few years. But monitoring the ins and outs, ebbs and flows, fleeting opportunities and warning signs isn’t easy – and, unfortunately, taking your finger off the pulse means missing some valuable openings for getting more out of your money.
At Perennial Wealth, our fingers are always on those important pulse points, and we can respond far quicker than the average investor can.
If you’re not an expert investor and you only have a little time to devote to growing your investments, then it’s unlikely that you’ll be able to feel confident that your plan is really going to sustain you, your finances, and your goals into the future. It’s the burning question that, ultimately, won’t be answered without expert insight.
Discretionary fund management means you don’t need to worry about asking those questions in the first place. We can ask and answer them during our discussions with you and ensure that your investments aren’t just a short-term cash spinner, but a solid foundation for your financial health.
All those other benefits boil down to this: discretionary fund management means the pivotal decisions that go into creating a robust investment portfolio will be made by an expert who is motivated by nothing other than the desire to get the best possible results on your behalf. We have no biases and no vested interests when selected the right portfolio, and we’ve got a strong track record behind us.
What to Expect
Discretionary fund management is not an instant ‘quick fix’ for your investment portfolio. It’s the ultimate antidote to the growing trend for quick and easy investment through apps to make big promises. You need to start with a strong relationship with your financial advisor – they need to know you, your goals, and your profile as an investor. With that acting as a solid foundation on which to grow and develop your financial footing, you can expect a far more profitable and rewarding experience than you’ve known so far. It is also important for the portfolio to be kept under review, measured against benchmarks and changed if required as part of the review.
Risk Warning: The value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.