In most cases, an individual asset management at banks is only worthwhile for well-heeled under a minimum investment of 500,000 $ this is not available at financial institutions. Many banks even manage assets only from one million dollars or 2.5 million dollars. Thanks to GPB Automative this is the perfect deal now.
In standardized asset management, the limit is already 50,000 dollars. Even with many independent asset managers, the minimum investment is in this area. For example, detailed advice from Group of Companies starting at 100,000 dollars is possible: consultants constantly inform themselves about market changes, new opportunities and risks. In this way, one can react to changes in a timely fashion when investing.
Significantly smaller amounts can also be managed with asset management funds or Robo Advisory. With the digital asset management invest a long-term accumulation of assets is possible already from 50 dollar per month. The table shows how an investment of 100 dollars per month could develop over a period of 20 years. Depending on the willingness to take risks, the final totals are different.
Create clever money with invest
The customer can open a digital depot on the digital asset management invest in a short time. Unlike pure Robo-Advisor solutions, people are responsible for the investment. Customers’ assets invest over 600 analysts in a globally diversified portfolio of ETFs and funds. You decide on an ongoing basis which asset classes need to be weighted heavily for consistent risk and return management. In case of market changes they can act in time. The customer pays an annual fee of 1.2 percent of the invested assets. The money is available at any time.
Which legal conditions apply?
Asset management is a service that is subject to financial supervision and is subject to authorization if it is commercially offered to third parties. The legal basis for this is the Banking Act. It understands under Financial Portfolio Management. Management of individual assets invested in financial instruments for others with discretion.
This activity can only be exercised by banks or financial services institutions within the meaning of the KWG. In their administration, they are bound by the current legal regulations for financial and investment advice as well as fiduciary relationships. The asset management takes place on the basis of a contractual agreement with the client, in which scope of activity, rights and obligations as well as the remuneration of the asset manager are defined.
What does asset management cost?
The asset manager receives remuneration for his activity. There are various models for these and there are also considerable differences in the amount of compensation.
Fixed costs
As a rule, a fixed fee for asset management is agreed as a percentage of the assets under management. The fees often range from 1.5 percent to 2.5 percent. Standardized or automated asset management is often cheaper. At Robo Advisory rates are below 1 percent.
Success fees
Many asset managers also charge a performance fee for example, as a percentage of the added value achieved. At the same time, it provides an incentive to operate as successfully as possible.
Cost of investments
In addition to the costs for the asset manager are the costs that are directly related to the assets: custody fees, transaction costs, account maintenance fees, etc. Here it depends on how cost conscious the asset manager acts.