Though we are living in an age where we are blessed with the best mutual fund distributor softwares in India, and most of us rely on digital wealth management solutions, we still need the expert advice of financial advisors.
I refer to this article, which was released in the Financial Times. It covers a few vital questions every investor must ask his financial advisor. The custodian to our life’s savings lies in the hand of an individual, shouldn’t we check his credibility before we hand over the keys to our entire safe?
Here is a way to decipher the competence and principles of your financial advisor.
A simple example here would be a critical component of equity in your portfolio. Its proportion will depend on your financial goals, investment tenure, other assets & liabilities, and, most importantly, your risk appetite. An adept financial advisor will do his due diligence to ascertain your investments and mitigate risks to ensure you meet your financial goals. An advisor who gives you Adhoc advice without an analysis of your information could be biased towards investments that benefit him more.
The credibility of information - “Half knowledge is dangerous.”
Accuracy of information and knowledge (due diligence) go hand in hand to minimize risks and maximize profits. While certification is necessary, an expert advisor must be adroit, knowledgeable, and well-informed. While the first two characteristics can be gained via hard work and experience, keeping abreast with the latest trends and information does not need to be a herculean task. Today with the FinTech boom, there are numerous ways technology can be leveraged to stay abreast with the markets, to use historical data to decipher trends, and to accrue client-specific information that aid in customized investing opportunities for clients.
The advice in the long run
Beginning early is key to saving prudently and unceasingly. Having an expert by your side from the early stages is an ideal situation to be in. Your financial sage should be your constant in life, guiding you through every economic phase you enter. From ‘learning’ where you are testing the markets and taking higher risks, to ‘earning’ where you have learned the ropes but now have a reduced risk appetite, to finally ‘reaping’ where you ensure you do not outlive your wealth, it is a long journey.
So, take your time and choose the best financial advisor. However, if you are wondering about the best mutual funds app for android, find them with us!
By Rajan Pathak, Co-Founder & MD, Fintso
Rajan is known for his in-depth insight into the financial entrepreneur’s venture with 25+ years of establishing various B2B businesses, which gives him the edge and adeptness to scale the advisory business.
As the CEO of IFAN Finserv (formerly ING), Rajan managed a team of 40+ people, created a wide network serving 1300+ Independent Financial Advisors managing assets over $500 million.