March 6, 2024
Digital wealth management platforms like Tailwind have revolutionised goal-based financial planning, offering convenient access to investment opportunities and personalised services. When engaging a digital wealth manager, asking the right questions is critical to ensure that there is a transparent and beneficial relationship between you and your manager. This trust is the hallmark of a longstanding partnership.
Hence, we bring to you five crucial questions that you must ask your digital wealth manager:
1. How is my Risk Profile Assessed?
Understanding how your risk profile is evaluated forms the foundation of a tailored investment strategy. Inquire about the methodology used to assess risk tolerance, investment goals, time horizon, and liquidity needs. A comprehensive risk assessment ensures that investment recommendations align with your financial objectives.
2. What Investment Strategies or Products are Recommended?
Enquire about the investment strategies or products recommended by the digital wealth manager. Gain insights into the asset classes, such as equities, best corporate bonds in India, mutual funds, or other financial instruments proposed for your portfolio. Understanding the rationale behind these recommendations helps in making informed decisions.
3. How Transparent are the fees?
Clarity on fees is crucial for effective financial planning. Ask about the fee structure, including advisory fees, transaction costs, and any other charges associated with managing your investments. Ensure transparency to assess the overall impact on your returns.
4. What Technology and Security Measures are in Place?
Inquire about the technology infrastructure and security protocols used by the wealth management companies. Verify the measures in place to safeguard your sensitive financial information and transactions, ensuring compliance with data protection regulations.
5. How is Portfolio Performance Monitored and Evaluated?
Understand the system for monitoring and evaluating portfolio performance. Inquire about the frequency of performance reviews and how the digital wealth manager tracks progress towards your financial goals. Assessing portfolio performance regularly ensures alignment with your evolving financial needs. Asking these questions can empower you to make informed decisions about your financial future while ensuring transparency and accountability from your digital wealth manager. If you’re looking for wealth advisory services that tick all these boxes, download the Tailwind app today!
