Investment Advisor

EconomyWatch
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Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.


 

An individual or a firm that offers investment recommendations to clients is typically called an investment advisor. Several investment advisors work for corporate entities and mutual funds, offering asset management services for a fee. Some advisors alsodirectly manage the assets of their clients. The fee could be a flat amount, may be calculated on an hourly or monthly basis or could be a percentage of the assets that are being managed.

Tips to Choose an Investment Advisor

Choosing an investment advisor is an important decision, as the advisor consolidates the wheel of your financial fortune. A good investment advisor will not only manage wealth amidst fluctuating market conditions, but will also work towards ensuring that your investment yields high returns.

Qualification: Find out if your advisor has a good standing and adequate educational qualifications with the right regulatory body. So, confirm whether your advisor is a Chartered Financial Analyst, a Registered Investment Advisor or a Certified Public Accountant.

Investment Solutions: An investment advisor’s experience must include creating a perfect portfolio by suitably allocating assets. Sector exposure is important to find appropriate investments, so is knowledge of various investment products like mutualfunds, securities, fixed deposits and bonds. Your advisor should be able to customize the portfolio depending upon your riskcapacity.

Payback Rewards: Some investment advisors try to lure clients by offering a refund of commission to make quick money. However,this is not advisable because investors are tempted to take more risks than they can possibly bear. An astute investment advisor maintains strict investment criteria to help investors capture above average returns with below average risk. This is done by identifying appropriate investment avenues to clients and managing their assets as opposed to offering a refund of commission.

Pitching New Fund Offers (NFOs): Steer clear of advisors who pitch new fund offers. Their sole purpose is to make money by offering cheap NFOs.

Value Added Services: An investment advisor should track an investor’s investments and provide regular updates based on marketresearch. After sales services are important as well, since an advisor should be able to make transfers on your behalf and notjust collect the form.

 

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