How much return on wealth management can you expect?

If you have your money managed by a wealth manager, you naturally want to know what the returns will be. However, the return on wealth management depends on more than you might think. It is not just the market that plays a role; your manager's costs and strategy also make an enormous difference. What can you expect, and what should you look out for?

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What does history say about the return on wealth management?

Over the past decades, the global stock market has delivered an average gross return of 7 to 8 per cent per year. That sounds attractive, but the reality is more volatile. One year the market rises by 25 per cent, the next it falls by 20 per cent. Bonds are more stable but have historically yielded only 1 to 3 per cent per year. The return from wealth managers therefore depends heavily on how they distribute your money across these wealth classes.

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A higher risk profile with more shares offers a higher expected return, but also more fluctuations. A more defensive profile with more bonds is steadier, but is expected to yield less. This trade-off is personal and depends on your goal and your horizon.

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Why returns vary so much between wealth managers

The return on managed investing varies significantly per provider, and this is mainly due to costs. Wealth managers who actively try to beat the market often charge higher fees. The problem? Around 80 to 90 per cent of those active funds perform worse than a simple index over the long term. You therefore pay more for less result.

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The difference between 0.35 per cent and 1.2 per cent in annual costs seems small. However, over 30 years, this often leads to a 20 to 30 per cent difference in final capital, depending on the return and risk profile. That is not a rounding error; it is tens of thousands of pounds.

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Managed investment returns at Vive

At Vive, your capital is invested in market-wide index funds with low costs. No stockpicking, no market timing, no speculation on sectors. Instead, a proven strategy: diversify widely and keep costs low. You receive a personal lifecycle strategy that is automatically adjusted as you get closer to your goal. More shares when you are young, gradually phasing down towards your retirement date.

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In the app, you can see exactly how your capital is developing. Not with empty promises, but with scenarios based on thousands of calculated possibilities. Transparency about what it can yield and what the risks are.

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What you can expect from your return

No one can guarantee returns. Anyone who promises that is lying. What you can do is tip the odds in your favour. Choose low costs, widely diversified investments, and a strategy that fits your horizon. The market does the rest, and historically, patience has paid off. Want to see what Vive has achieved? You can do so on our returns page.

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Want to know how much you can contribute with tax advantages? Check the annual margin calculator. Are you self-employed or an entrepreneur and want to see how wealth management fits with your pension build-up? Read more about pensions for the self-employed.