Know your niche

The style of involvement in decision-making is one of the most important issues that investors need to decide. How hands-on or hands-off do they wish to be, and what are their preferences and special areas of investment expertise? This is a natural starting point for discussions for any investor with a new investment adviser.

Some investors like to devote much time and personal effort to their investments. Others prefer to delegate as much as possible to someone they trust. Neither policy is inherently superior, so long as keen investors have grounds for believing that their interventions are likely to add value (or to save value), and disinterested investors are sure that their advisers properly understand their investment objectives and that a reliable process of review has been established.