• Tyrone Skipper

Signs that you might benefit from discretionary fund management

Finances can be tricky to manage, particularly if you intend to put your money into investments or retirement funds. Many people often ask experienced fund managers for help. These professionals can help you gain more insight into how to efficiently make use of your cash.

While fund or investment managers work to guide you through important financial decisions and assess your portfolio, discretionary investment management is a little different.

Discretionary fund management can be described as an arrangement between an advisor and a client made to free the client from the burden of making day-to-day investment decisions. Why would someone opt for this service and what are the advantages of this approach? Here are a few signs that the discretionary route might be the right one for you.

You just don't have the time

You might have the money, but you might not be able to commit to the extensive amount of effort required for fund management. When it comes to aspects of financial management, such as knowledge, time or the tools needed to benefit from these savings on a daily basis, things can get a little overwhelming. Factor in the flow of news that you need to keep an eye on which could possibly impact financial assets, and you might be begging for discretionary help.

You have trouble focusing

Precision can be an integral part of properly allocating your finances. You may have to focus on delegating your budget to accommodate your preferences in order to meet an objective or finance a specific project like planning for retirement or paying for your child's education.

Discretionary Fund Management through a certified expert can free you from having to decide on how best to go about this. Plus, they typically keep you regularly informed about the moves they are making.

You don't want to lose control

Wealth management can be a heavy burden to carry alone, which is why many people often seek expert guidance in the form of portfolio management. However, people generally don't want to lose control of their finances, even if they are in the hands of experienced advisors. Delegating your money through discretionary fund management won't necessarily lead to a loss of control. In fact, a delegation mandate must provide the necessary resources and inform clients once objectives are met.

You're overwhelmed by risk and fluctuations

As an investor, gathering information and forecasting financial markets to form a basis for a return on investment can prove difficult, particularly since these factors may change often and require consistent attention.

Without proper research and analysis, risks are increased and you could compromise your portfolio’s effectiveness.

Discretionary fund managers focus on these aspects, often working with teams to generate the best performance while assessing associated risks. Managers' areas of expertise include asset allocation for proper investment diversification, selecting relevant financial instruments (like equities, bonds or funds) and managing risk derived from levels of volatility or the liquidity of instruments.

Advisors strive for efficient financial planning for their clients, and discretionary fund management often exists as an effective and recommended option for financial wellbeing. This can depend on each client’s unique situation. We can arrange for a review together to speak about the benefits of this approach and if it is suitable for you.

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