What is wealth management?

Asset management means having your money managed by someone who specializes in it. Asset managers invest assets with the aim of achieving returns. Previously, this required a high deposit, but nowadays that doesn't have to be the case. In this article, we discuss what asset management is, what types there are, and how it works.

Difference between individual and collective asset management

There are two different types of asset management: individual and collective. Individual asset management is customized. Your situation is examined and an investment plan is created based on this. Individual asset management often requires a high deposit (from €100,000).  

Collective asset management means managing the assets of multiple individuals simultaneously, such as in a pension fund. Collective asset managers often utilize model portfolios, which are pre-defined investment strategies with varying risk levels (low, medium, or high). A key advantage is the ability to start with a relatively small initial investment. However, a drawback is that collective asset managers do not consider your personal situation, preferences, and goals.

The better an investment strategy suits you, the more pleasant your investment journey will be. With a personal investment strategy, the ideal route to your goal is considered. Fully tailored to who you are and what you want. That is the power of individual asset management.

What is online wealth management? 

In recent years, a number of online collective asset managers have appeared on the market. As a result, asset management became available to a larger group of people. These online collective asset managers also use model portfolios and a low entry amount.

The investment strategies of these asset managers are similar to each other, although individual investment products may differ. They diversify assets by investing in different countries, sectors and industries. Many asset managers use a combination of investment funds and ETFs for this.

Asset management and licenses

Asset managers need a license from the Netherlands Authority for the Financial Markets (AFM). They are also supervised by them. There are rules that they must adhere to before they can manage assets. This includes solvency requirements, requirements for 'good governance' and training requirements for specific personnel. If an asset manager does not meet all the requirements, the license can be (temporarily) withheld or withdrawn. Do you want your assets to be managed by an asset manager? Then first check whether this party has a valid license from the AFM.

Is wealth management right for you?

If you want to put your money to work, but have little time or inclination to learn about investing, asset management can be a good choice. It is important that you know exactly how much you are comfortable investing. Other aspects to consider when choosing an asset manager are:

• What investments does the asset manager use?
• What do the costs look like?
• What protection do I have on my investments?
• To what extent do I retain control over my investments?
• What is the relationship between potential return and risk?

Want your assets to be managed effortlessly?

Do you want to put your money to work, but don't have the time or inclination to learn about investing? Vive is an online individual wealth manager. We put your money to work with a personalized investment plan and execute it for you. This way you build wealth while hardly having to do anything. You can read more about what we do here, but you can also easily try the app.

Please note! Investing involves risks.