How to pick an equity portfolio manager?

Picking the right equity portfolio manager will allow you to earn maximum returns with relatively controlled and lower risks. Finding a trustworthy and knowledgeable equity portfolio manager who will ensure superior financial results is very hard. The current economic environment is changing so fast that you need to follow the trends to maximize your returns. That is why choosing the right equity manager is essential for your future wealth. For that reason, let’s see several factors you should keep in mind while selecting the right equity portfolio manager.


Is s(he) really an expert?

First of all, make sure your equity portfolio manager has a complete and accurate understanding of existing investment plans and the corresponding risks involved. Take into account that this person is going to manage your finances, and someone who is not familiar with market regulations and trends cannot help you make smart financial decisions.

Does s(he) try to make it easy for you?

Another important thing to consider is transparency. An experienced and trustworthy equity portfolio manager will not confuse his client by using complicated terminology; he would rather understand the client’s needs and make clear what the deal is, whether it is worth investing or not.

Make sure there is no bias 

Select a portfolio manager who is entirely independent and does not have any interest in specific stocks. In this case, the portfolio manager would not consider possible better options on the market won’t trick you into investing in the stock where he has personal interests.

Check their performance history 

Look at the portfolio manager’s three-year performance and hire the ones who have done well over the three years. By doing the research yourself, you will get to know your potential portfolio manager’s investment strategy, whether he has followed the market trends, and was informed about macroeconomic conditions. In other words, you will get to know whether this person is knowledgeable and able to manage your equity portfolio professionally.

What’s his/her managing style?

Consider the philosophy and investment style of the portfolio manager. Some of the experts focus on the product itself; others consider value, growth, and other factors. Some specialists combine both of the styles and get the best outcome. Take into account which technique is better for you and how you would like them to manage your finances.

Is s(he) a good financial planner?

Your equity portfolio manager should be a great financial planner that will ensure your future cash flows and come up with a plan that will match the time horizon of your current and future wealth and how you intend to spend it. To ensure you have an input in this step you should also focus on communication and follow up meetings which very important for your sustainable future. Try to keep up with the strategy and plans your equity portfolio manager develops for your finances.

Overall, selecting an experienced and trustworthy equity portfolio manager is a tough thing to do. It would help if you considered various factors before trusting a person who is going to control your finances. Although selecting the right and trustworthy equity portfolio manager is important, at the end of the day, you should not blindly trust your portfolio manager instead of every document before signing and investing in them.

February 5, 2020

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