Consolidate to increase your investment focus

July 21, 2017

Have you ever felt that your investment portfolio isn’t a priority to the advisor or investment manager you’re working with? Consolidation is one solution to manage this frustration.

Consolidating your assets allows one investment manager — instead of multiple — the opportunity to oversee your entire investment portfolio. This gives your advisor the opportunity to properly allocate your assets and diversify your portfolio appropriately across multiple sectors and markets.

Three reasons to consolidate your assets

1. Save on time. Instead of multiple annual reviews, you can attend just one. This annual meeting would be with someone who has a clear view of your entire portfolio, and a thorough understanding of your short and long-term financial objectives.
2. Become a more valuable client. “If you have your assets spread across a number of institutions, you are a much less valuable client to them than if you opt to focus your portfolio in one area,” explains Girish Agrawal, Principal of Agrawal Associates. “By consolidating your assets in one area, your portfolio can garnish far more attention.”
   
   Clients with significant assets at one institution may have more power to negotiate fees, or access services or perks usually reserved for clients with larger portfolios. Consolidating your assets makes you a top-priority client within that company, rather than being a ‘small fish’ at several.
3. Ensure diversification. When your assets are at multiple institutions, or being managed by multiple advisors, they may end up all using the same investments to grow your wealth. This could expose you to unanticipated risk — you may not actually have a diversified portfolio. One professional managing your assets ensures your finances are appropriately distributed across multiple markets and sectors. It also better allows for proper allocation between fixed income, equity and cash.

Guided by prudent principles

Consolidation is a Prudent Principle of Wealth Management identified by Girish Agrawal and practiced by all consultants at Agrawal Associates. 

These prudent principles are interconnected, but follow a logical flow. Consolidation is one of Girish’s first recommended steps to wealth management. Consolidate your assets under the supervision of one experienced, professional advisor. From there, other prudent principles such as the Efficient Frontier will be incorporated to grow your wealth.

Finding the right advisor is key. Look for an advisor who can help your investment portfolio grow through multiple channels. Advisors on the IIROC platform are able to assist clients with multiple investment opportunities, beyond just mutual funds.

“With the transition to the IIROC platform, we are now able to manage securities for clients as well” explains Girish Agrawal. “This significant investment in training and licencing allows our practice to further expand the consolidation of assets managed under one roof.”

Learn more about the types of investment management services Agrawal Associates offers, including other prudent principles through our website.

- Agrawal Associates