Investing with an asset manager – is it worth it?

When your car won’t start or the heat pump in your home needs replacing, what do you do? Do you set about repairing and replacing it yourself or do you prefer to call in a specialist?

I am convinced that the majority of us consult an expert in such situations – due to a lack of know-how, time or tools. Ultimately, it’s about minimizing potential risks and focusing on quality. The situation is very similar with asset management. Investing money can be complicated, time-consuming and very risky without the right tools. As with cars or building services, we are dependent on expertise here too. The vast majority of investors are therefore well advised to draw on the expertise of an asset manager. Quite simply because it’s about more than just money – it’s about your financial future.

But why should you choose to work with an asset manager? What are the benefits? Here are my top 4 arguments in favor of an asset manager:

#1: Time is money

In a world where speed and efficiency count, time is an invaluable commodity. For an asset manager, it is precisely this time that is at the heart of his service. One of the main reasons why many private investors rely on his expertise is the simple lack of time. The financial world is constantly changing: Share prices fluctuate, economic forecasts change and geopolitical events can alter market landscapes overnight.

The demands of staying on the ball can not only be overwhelming for private investors, but also extremely time-consuming. It is not enough to check the financial news once a month or occasionally look at a stock market magazine. Active asset management requires continuous market observation, analysis and responsiveness.

For those whose main job or purpose in life is not directly related to the stock market, this commitment can easily turn into a second full-time job – with overtime! Added to this is the complexity of the subject matter. Financial products, investment strategies, tax considerations and risk management are just some of the many facets that need to be taken into account. Viewed from this perspective, it becomes clear that time is not just money – it is also security, peace of mind and confidence in the future.

#2: Stock market expertise that goes beyond Google

In today’s digital era, access to information has become dramatically easier. With just a few clicks, we can find out about almost any topic, from cooking recipes to complex scientific theories. The world of finance is no exception. Countless articles, e-books, webinars and YouTube tutorials promise to let us in on the secrets of investing in the stock market. But as valuable as these sources of information may be, they are no substitute for the in-depth expertise of a professional.

Compare it to medicine: would you get involved in an operation performed by someone who has gained their knowledge exclusively from online videos? Neither should you consider investing your hard-earned money based on a quickly googled article.

An experienced asset manager has a deep understanding of market mechanisms, can interpret economic data and make appropriate investment decisions based on this. In addition, an asset manager brings something to the table that no algorithm or article can offer: Personal experience. They have experienced the ups and downs of the market, have learned from successes and mistakes and can use this knowledge to make well-founded decisions.

In short, while Google and the like can provide us with a valuable overview, the genuine expertise of an asset manager is irreplaceable when it comes to investing safely and efficiently in the future.

#3: Diversification – juggling the financial world

Juggling is an art. A balancing act that not only involves keeping several objects in motion at the same time, but also mastering rhythm, timing and concentration. The same applies to diversifying your investments.

Imagine trying to juggle balls of different sizes and weights. Some are heavy, others light as a feather. This is the reality of the financial world: different asset classes and instruments have different risk profiles, expected returns and market dynamics. The art of diversification is to manage this imbalance so that your overall investment portfolio is balanced – and fits the current stock market situation.

An asset manager is like an experienced juggler. He understands the dynamics of each “ball” and knows when and how to throw it to keep the overall picture in harmony. He not only analyzes the individual investments, but also how they relate to each other and ensures that you are not too dependent on a single sector or market.

#4: Emotional distance

Money is emotionally charged. For many people, it embodies security, freedom or the success of years of work. Decisions that affect our financial future can therefore often be accompanied by fears, hopes or even euphoria. How often have you heard of someone who had a “good feeling” about a particular share or who sold too early for fear of losing money?

These emotional reactions are human and completely natural. But in the world of finance, they can cost us dearly. A hasty decision, driven by the fear of a stock market crash, or blind faith in a supposedly “safe” investment can significantly reduce the returns on your investment or lead to considerable losses.

This is where the asset manager comes into play. Their professional role and experience allows them to take a step back and look at things from an objective perspective. They are not influenced by the emotional ups and downs that a private investor might experience. Instead of being carried away by the daily fluctuations of the market, his analysis is based on sound data, trends and economic indicators.

It is also his duty to act in the best interests of his clients. This means that he always strives to make rational and well-considered decisions based on long-term goals and strategies, rather than reacting to short-term market movements or news hysteria.

In a sea of information, opinions and market speculation, the asset manager is like a calm lighthouse in the middle of a storm. He ensures that emotions do not gain the upper hand. Because, as the well-known saying goes: “Emotions are an investor’s worst enemy”.

Conclusion

Of course, hiring an asset manager comes at a cost, but as with so many things in life, sometimes you have to spend money to make money sustainably. Considering the time saved, the expertise, the diversification and the emotional distance, it could be worth the investment.

So, unless you plan to invest your retirement money in lottery tickets or alpaca farms, working with an asset manager is the only right move.

With this in mind, let your money work in good hands.

Yours, Mark Stock©

Mark Stock is a member of the Point Capital editorial team. “I am a stock market enthusiast and am passionate about economic history. I have been following the ups and downs of the markets for years and, of course, invest myself – preferably in shares. So my name says it all. Every month, I take up what I consider to be an exciting topic. And since the focus is on the content and not on me personally, I write under a pseudonym.”