Is wealth management companies manage funds well?
There are many wealth managements companies who are on the job of wealth management. Is those are succeeded in managing the wealth of their clients. The straightforward answer is No. This is because of many reasons. These companies are living on the revenue of fees for the services and brokerage on the trading in securities.
They charge starting from two to three percent of the investments on a yearly basis. This income is regular income for the wealth management companies. Further they also charge the brokerage on purchase and sale of securities. Their approach is to go with the present market ups and down and so accordingly buy sell on the movements of stock market. Ultimately, they manage to earn their brokerage well leaving the core aspects of the management of client’s portfolio.
So, we suggest to investors not depend on the wealth management company to manage hard earned money in stock market. Instead they can open the DEMAT and Trading account in any of the broker house and investment in good quality stock. We prefer NIFTY – 50 stocks are ideal for any investor to park the investments. These stocks will earn good revenue by way dividend and good appreciation of wealth in the long term say for three to five years period. Here there is an opportunity to learn the stock market and thereby to avoid dependency on some companies who have their own commercial interest.