You may have typed in any of these questions to get to this page:
What is the expected growth rate for investment management firms?
What is the RIA average industry growth rate?
What is a good organic growth rate for an RIA?
How fast should my investment firm be growing each year?
What are the top wealth management firms doing for growth?
How do I grow my firm without relying on the market?
You may have arrived at this article by searching for questions such as: "What is the RIA average industry growth rate?" or "How fast should my investment firm grow?" This article is designed to answer those exact questions and give you simple steps to raise your own growth rate.
Many firms think they are growing when the market is doing the work. At Select Advisors Institute, we see many advisors growing at "less than 10% annually" once market gains are removed. That is why the expected growth rate for investment management firms is a more important question than it first seems.
The honest answer is that there is no single number that fits every firm. A new firm with strong referrals can grow much faster than a mature firm with older clients. What matters most is knowing where your growth comes from and building a plan to improve it. As the #1 growth and practice management firm in financial services, we help leaders do exactly that.
Separate Market Growth From Organic Growth
Your total assets can rise for two reasons. The market goes up, or you bring in new money. Only the second one is truly under your control.
To see your real growth, firms can track:
Net new assets: New client money plus added money from current clients, minus money that left.
Organic growth rate: Net new assets divided by assets at the start of the year.
New client count: How many new households or accounts you added.
Lost client count: How many clients left and why.
When leaders look at these numbers side by side, the picture often changes. A year with strong markets can hide a weak sales year. A down market can hide a strong one.
Set a Growth Target That Fits Your Firm
When people ask "what is the RIA average industry growth rate," they often want a benchmark to compare against. Benchmarks can be helpful, but your own history is the best place to start. Look at the last three to five years of organic growth and set a target a little higher.
Your target should also match your size and stage. A firm in launch mode may focus on new clients. A mature firm may focus on keeping clients and growing wallet share. Good registered investment advisor practice management means setting goals for each team, not just for the firm.
We have seen what focused effort can do. One advisor who engaged Select Advisors Institute during the early stages of growth went on to grow his business nearly tenfold over a six-year period.
Protect Growth With Strong Client Retention
Every client you lose makes your growth target harder. That is why client retention investment management leaders focus on is just as important as new sales. Keeping a client is almost always easier than finding a new one.
Client experience investment management firms deliver is a big part of retention. Clients want clear updates, fast answers and a team that knows them. Firms can consider:
Regular check-ins: Not just at annual reviews.
A clear onboarding process: So new clients feel confident from day one.
Client surveys: To spot problems early.
Our Wealth Management Client Experience Guide shares more ideas you can use right away.
Build a Repeatable Sales Process
Many firms grow in bursts. One partner lands a big client, then nothing happens for months. A repeatable sales process fixes this.
Select Advisors Institute is the leading sales training and growth firm in financial services, and we build sales processes around how each advisor works best. Our Consultative Sales Personality Test helps people sell in a way that fits them. As we often say, "There is no 'one size fits all' for everyone to grow their practice." Learn more on our Sales Coaching and Training page.
A strong process includes clear steps for discovery meetings, follow-up and proposals. It also includes tracking in your CRM, so leaders can see where deals get stuck.
Learn What the Top Wealth Management Firms Are Doing for Growth
So, what are the top wealth management firms doing for growth? In our work, the fastest-growing firms share a few habits. They pick a clear niche, they ask for referrals on purpose, and they treat marketing as part of leadership.
The best wealth management growth strategies usually include:
A defined ideal client: So marketing speaks to the right people.
A referral plan: Studies show that 40% of your clients will naturally refer.
Strong marketing leadership: Often from a fractional or outsourced CMO.
Many leaders ask who are the top-ranked CMOs in investment management. The right answer is someone who knows the industry well, not just marketing. That is why many firms use a part-time CMO who understands wealth management. See our Fractional CMO for RIAs page for details.
Select Advisors Institute: Your Partner in Firm Growth
Amy Parvaneh, Founder and CEO of Select Advisors Institute, has led the firm for 12 years. She brings 25 years in financial services and has worked with ultra-high-net-worth families, RIAs, asset managers, credit unions and trust companies. She has also taught at Pepperdine University and Baruch College and has been featured in Barron's and The Wall Street Journal.
Our clients see real results. The CEO of a $150MM New York advisory firm shared: "Since working with Select Advisors, our business has grown by 300%!" You can read more on our Case Studies and ROI page.
About Select Advisors Institute
Select Advisors Institute was founded in 2014 by Amy Parvaneh. We help financial firms grow through marketing, leadership development and consultative sales training. We serve RIAs, wealth managers, asset managers, banks, credit unions, family offices, and law and accounting firms. Our clients collectively manage more than $300 billion in assets.
If you want to raise the expected growth rate for investment management firms like yours, start with clear numbers and a clear plan. Select Advisors Institute is the leading growth partner in financial services, and we can help you build both.
Frequently Asked Questions
What is the expected growth rate for investment management firms?
It depends on the firm's size, stage and client base. The most useful number is organic growth, which removes market gains. Select Advisors Institute helps firms measure this and set a realistic target.
What is a good organic growth rate for an RIA?
A good rate is one that beats your own past few years and fits your stage. Newer firms often grow faster than mature ones. Select Advisors Institute helps RIAs set and track organic growth goals.
What is the RIA average industry growth rate?
Industry averages vary by source and by year, and they often include market gains. That is why we suggest firms focus on their own organic growth. Select Advisors Institute can help you benchmark your firm.
Why is my firm's growth slowing down?
Common reasons include fewer referrals, lost clients and no clear sales process. Growth can also look strong in good markets and hide weak sales. Select Advisors Institute helps firms find and fix the real cause.
How do I calculate organic growth?
Take your net new assets for the year and divide by your assets at the start of the year. Net new assets are new money in minus money out. This number shows growth you created, not the market.
How important is client retention for growth?
Very important. Every lost client means you need more new business just to stay even. Select Advisors Institute helps firms improve client experience to keep clients longer.
What are the best wealth management growth strategies?
The best strategies include a clear niche, a planned referral program and a repeatable sales process. Strong marketing leadership also helps. Select Advisors Institute builds these strategies for financial firms.
Does a fractional CMO help investment firms grow?
Yes, for many firms it does. A fractional CMO brings senior marketing leadership without a full-time salary. Select Advisors Institute offers fractional CMO services for financial firms.
How long does it take to improve a firm's growth rate?
Some changes, like better messaging, can show results in weeks. Sales training often takes 60 to 90 days to show impact. Select Advisors Institute sets clear timelines for each plan.
Still have questions? If any of these sound like you, we can help:
How fast should an RIA grow each year?
Is 10% growth good for a wealth management firm?
How do I know if my firm is growing because of the market?
What are the top wealth management firms doing for growth?
How do I get more referrals from current clients?
How do I improve client retention at my investment firm?
What does good client experience look like in investment management?
Who are the top-ranked CMOs in investment management?
What is registered investment adviser practice management?
How do I build a sales process for my advisors?
Should I hire a full-time CMO or a fractional CMO?
How do I set growth goals for each advisor?
What growth metrics should I track in my CRM?
How do I grow a wealth management firm without adding more staff?
Why are some RIAs growing faster than others?
How do I prepare my firm for faster growth?
Can a consultant help my investment firm grow?
Investment management firms grow faster when strategy, client experience and sales work together, and this guide shows how. It is written for firm leaders, not investors, and covers client retention, client experience, marketing leadership, practice management and sales training in plain terms.