It is good to be independent but there is no harm in seeking professional help for better outcome when it comes to money. with so many investment options available, investors are often confused and find it hard to decide which ones suit their financial objectives the best.
Investment advisors play an important role in educating them about the market and guiding them to the right product.
How do you define an investment advisor?
An investment advisor is a person in charge of your financial assets. He or she may also make investment recommendations on any financial instrument, including equity and debt. Investment advisors work for companies that have been designated as “Investment Advisors” by regulatory bodies such as India’s SEBI.
Viral Bhatt, Founder, Money Mantra, shared, “A financial advisor's essential role is planning investments to ensure you benefit from the most significant gains or manage to minimize losses. Investment advisors have a significant role to play in financial markets, but they are ill-equipped to support a client's longer-term financial goals. The choice between a stockbroker and investment advisor is highly personalized, depending on a client's unique financial needs for managing their money.”
A Chartered Financial Planner certification adds value to their credentials. Though the fee charges depend a lot on the size of the investment portfolio, it makes sense to seek professional help for much-needed advice regarding when, where and how much to invest. Investment advisors help their clients decide how aggressive they can be with their investments and how much risk they should be willing to take.
More investors are seeking professional help to decide on their investments. Also, some investors do not have the time to manage their portfolios but are very knowledgeable about the financial aspects of their investments. Such investors might want to consult with a financial advisor. They help with the frequent monitoring and portfolio adjustments required to keep up with ever-changing market conditions and situations.
Suresh Sadagopan, MD & Principal Officer, Ladder7 Wealth Planners, said, “Registered investment advisors would understand their clients’ financial goals and needs, assess their situation and make a financial plan that is their blueprint for their future. Such advisors act in a fiduciary capacity and hence clients can be rest assured that their advisor is acting solely in their best interests. Appropriate investment suggestions will come as an outcome of the planning which will be aligned with their requirements.”
Successful investment advisors combine analytic skills, a thorough financial understanding, and client-facing skills to assist clients in identifying and achieving their financial goals. A financial professional can assist you in achieving your investment objectives more quickly and efficiently, whether you are investing passively or building a more active portfolio.