It is must for an investor to be very careful while selecting a investment Advisor. Over the period of time such advisor becomes just like a family members as you need to share a lot about your personal life with them. Thus it becomes a very important decision. So while selecting, you must do a thorough check on his or her credentials. Here is a list of questions which you must ask for selecting your Investment advisor.
Are you registered with SEBI?
A SEBI Registered Investment Advisor is desirable state which indicates the person is serious of his/her profession and intend to work for long term. Only such advisor will look forward with good advice instead of reaping short term benefits with churning approach.
What’s your Qualifications?
An Investment advisor should have a suitable qualification like MBA -Finance, Certified Financial Planner(CFP) or CFA. Such qualification ensures that the financial advisor knows well about basic concepts of managing money.
How much experience do you have?
Only experienced professionals will have an adequate know how of using concepts of finance in daily life. Financial planning involves in depth understanding and analysis of life cycle, planning for goals and risk profiling. An experienced professionals would have dealt with more investors and faced various situation in different facets of economic cycle.
What will be your approach to sell products?
A good investment adviser never sell products, they just fulfill needs. A need based financial product is what you expect while selecting a Investment advisor and a big reason for having a him. So you do not need a good sales man, all you need is a good planner or advisor. More knowledge on products, economy, financial planning should be given a consideration above his presentation skills. As you need a good product and not a handsome man to spend time with.
How many client you have?
Your portfolio need reviews and person with limited clients will only spend an adequate time doing that. Avoid very busy advisor or high profile professionals. Your portfolio must be reviewed quarterly/half yearly/annually as such prefer a planner who will remain in touch with you.
How much do you charge?
Do not prefer the cheapest one. Your Investment advisor should be value for money. Prefer to go for the right advice with reasonable compensation rather than low fees which might come packaged with biased recommendations. Generally, financial planners charge an upfront fee and/or a percentage of your assets periodically or both. However, if your are buying financial products from the Investment advisor himself, insist for disclosure on the commission earned by him/her.
What are your interests?
A like minded people get along together with greater ease. A similar kind of interests will give you other reasons to interact with your adviser apart from finances. One of the interest of your financial advisor should be to track economic issues as it is critical for his career continuance.
With satisfactory answers to these questions, you can start your relationship with him with full confidence. And if you are happy with his wisdom and service, never hesitate to spread good for him in your friend circle. Better relationship are established with commitment from both sides.
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Happy Investing!!!
