1. Quantify their clients’ risk tolerances and return needs by taking into account his liquidity, income, time horizon, expectations
2. do an optimal asset allocation and choose strategy that meets the clients needs
3. diversify the portfolio to eliminate the unsystematic risk
4. Monitor the changing market scenario, expectations, client needs etc and rebalance accordingly
5. lower the transaction cost by minimizing the taxes, trading turnover, and liquidity costs.
Have you chosen the right manager?
