With the country undergoing its fourth stage of lockdown during the COVID-19 crisis, people are growing to become more resilient to the impact of the ongoing pandemic. And that is extremely important for any country’s economic growth, for resilience and adaptability are the two pillars of getting the economic slowdown on track.
In India, we are ready to pay fees to lawyers, doctors, etc. for their advice. Still, we are somehow not used to paying Investment Advisors, let alone SEBI Registered Investment Advisors, for their expert advice on how we can manage our money efficiently.
It’s because people aren’t aware of the indirect fee structure (thought to be a free service), for they are happy with the tips/advice given by friends and family in most cases.
Resilience is what we need to survive and lead a life at a time when regular income has become highly uncertain. Because of that, people have gained a whole new outlook on their money management techniques.
In fact, people have been getting interested in obtaining an analysis of their current financial situation, identification of business goals, developing and recommending financial strategies to realize such goals through a sound portfolio advisor.
However, hiring an investment advisor out of the blue is not something that a wise man would do. To make sure your money goes to the best hands, it’s crucial for you, as the consumer, to understand what your portfolio advisor recommends and why. Make sure you keep a close eye on the fees you are paying, both to your advisor and for any funds bought for you.
When do you need an investment advisor?
There is no particular age or time frame that is required to seek the services of a financial investment advisor. You don’t need a sky-high net worth, but just find a SEBI Registered Investment Advisor to suit your particular needs.
That means you need to find an individual or financial planning institution to help them with all and any decisions related to investing, purchasing, selling. You may also need their help in dealing with securities or investment products and advice on investment portfolios containing securities or investment products.
Here, we will discuss some of the general reasons why anyone might need an investment advisor’s professional help to manage your financial decisions:
You don’t know how to handle investments wisely.
While surviving our everyday lives in inflation, any money that people keep in the form of cash, or even in a low-interest account undergoes a decline in value each year. Investing the money in a good, revenue-generating scheme is the best way out unless you have an exceptionally high income. This is the last resort if a person wants to have a steady influx of money after retirement.
You have substantial investments, but you still lose money.
Regardless of what investment scheme you choose to finance, even the best investors tend to lose money. It can be either because the market is down, or when people’s decisions don’t turn out the way they had thought it would.
However, this should not deter you from investing because fruitful investments are the only way to increase your net worth considerably.
Hiring a SEBI Registered Investment Advisor can help you find out what you’re doing wrong with your investments and correct your course before it’s too late.
You do not have any estate plans at present.
Having an investment advisor can help people put together an estate plan. This gives people assurance that their assets will be handled according to their wishes, even after their death. And in case a person doesn’t have a beneficial insurance plan, having a SEBI Registered Investment Advisor can help you with the same. But remember, its usually a fee-only financial advisor who will be able to offer a less biased opinion than an insurance agent.
But why should you work with a SEBI registered Investment Advisor?
People without a strong financial background should understand why its important to go for the best SEBI Registered Investment Advisor if you are looking for investment opportunities in India.
After all, most investment advisory services are regulated by SEBI – Securities and Exchange Board of India, through its Investment Advisor Regulations 2013. And all registered portfolio advisors come with the qualification, certification, and experience required by the regulation to ensure that the customers get quality advice.
The right portfolio advisor will also check the suitability of the investment advice and carry a risk profile of the client as per the guidelines. They are obliged to act in a fiduciary capacity towards their clients and disclose all conflicts of interest and when they arise.
The job of an investment advisor requires a lot of precision and attention to detail, like the execution and investment advisory services that have to be segregated to reduce conflict of interest if any. All these measures, which are mostly client-centric, bring transparency in the process of investment advice. Therefore, seeking the services of a SEBI registered Investment Advisor for such complex operations is always advisable.
Where do you find a reliable SEBI Registered Investment Advisor?
Although people can find a complete list of all the authentic and registered investment advisers on the SEBI website, there are various other players in the market as well. As a matter of fact, many registered investment advisory service providers have their own sites where you can check out financial information.
A lot of registered investment advisory service providers even allow their customers to sign up for their promotional newsletters for sound financial planning and investment advice.
Not all financial advisors have the same level of training or expertise when you seek their services. Therefore, make sure to do your own due diligence when looking for a sound financial portfolio advisor and see that they meet your financial planning needs.
Keep in mind that finding an advisor who is the right fit for your financial requirements is the key to developing a successful long-term relationship. An investment advisor can have all the experience, credentials, and success stories in the world. Still, if you don’t like them, you won’t enjoy working with them, which will eventually affect your financial plan.
Its Rahul Shakya, I am digital marketing executive and blogger. Im working in reputed digital marketing firm.