Understanding Wealth Management
Wealth management is more than just investment advice: it encompasses a person's entire financial life. The right wealth management partner relieves clients of the complexity of financial strategies by providing investment solutions tailored to meet their individual wealth goals and risk tolerance. The combined financial and investment strategies often require planning for accounting treatment, taxation, insurance, retirement, legal issues, or estate. The wealth manager should provide a holistic approach to wealth preservation and growth.
Whether they provide a myriad of services or specialize in particular areas, wealth managers must evolve to meet the changing needs of their clients.
The Family Office specializes in growing and preserving wealth through building well-diversified portfolios across sectors and geographies.
Learn more about The Family Office philosophy
Value Investing in Wealth Management
“Value investing” has long been the favored approach of wealth managers, embraced by venerable investors including Warren Buffet and many others. Briefly, it involves buying apparently undervalued stocks and waiting for the market to reprice them to their intrinsic value.
This investment approach has been reserved to the largest investors who can retain the best brokers and have the capital and knowledge that other investors lack.
Modern Approaches to Wealth Management
In a new world ruled by technology, wealth management is breaking away from decades-long traditions as it ventures into digital transformation. As more millennials inherit the wealth of the previous generation and grow their own wealth, a younger generation of investors is emerging, who are more hands-on and demand digital solutions that fit their lifestyle. The new investors behave differently, with a more pronounced interest in investing smaller sums and the need for more control.
The investment industry has become democratized with a surge in Fintech firms that use big data and artificial intelligence to deliver market information and tools easily to the public to analyze market trends and make investment decisions independently. This has also amplified risk as markets are moved from time to time by investors who lack knowledge and experience, leading to considerable loss.
Impact of Wealth Management Digitization on Clients
Digitized wealth management provides a myriad of unprecedented possibilities at the disposal of clients, putting them in a front-row seat on their investment journey with more control over investment choices and portfolios from a much wider pool of opportunities.
Digitization can also enhance transparency with far more detailed information about clients’ portfolios and investments in general at their fingertips.
Most importantly, digitization improves user experience by providing an instant, cost-efficient service leveraging Fintech solutions, artificial intelligence, big data, machine learning, etc.
The Family Office mobile application boasts an end-to-end fully digital experience with regular portfolio updates, exclusive deals from world-leading asset managers, market insights from industry leaders, and a quick, hassle-free, paperless digital onboarding.
Learn more about The Family Office Online Platform
Did you find this article valuable? Delve into private markets.