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How To Select Best Financial Advisor?

Getting good financial advisor service is critical for creating a workable plan for meeting your financial goals and ensuring that you and your family members are on the right track in terms of overall financial well-being and investment management.Many people feel that they do not need a financial advisor and can manage their financial activities on their own. However, a well-qualified, knowledgeable and professional financial advisor can certainly help you save more, invest wisely or reduce debt and bring out the nuances of wealth management processes to your benefit.A financial advisor takes a holistic look at your financial situation by assessing your income trends, expenditure patterns, assets and debt. The advisor uses this information to help you plan for your goals and select appropriate investments. Investment advisor services have become more of a norm these days given the rising complexity of financial products and volatility in financial markets.

Here is how you can ensure that you choose aninvestment advisor service best suited for your wealth management needs:

Focus on track record:Remember that a strong track record is critical for a financial advisory serviceas such an expert is supposed to help you navigate complex financial situations in the most optimal manner. A person having a good caliber and unbiased approach would help you frame a plan for dealing with financial risks and would also focus on wealth creation over a long term. Don’t fall prey to advisors claiming to offer hefty gains in a short period of time.

Explain your goals in clear terms: It is important that before you look for an investment manager, your financial goals are clear in your mind. This will avoid the unnecessary confusion when it comes to deployment of your funds. A lot of people want to get started on saving for retirement but aren’t sure how to go about it.  For this and basically for investors at all stages of like, clarity of thoughts is essential as you will not be able to express your financial needs to the advisor unless and until you are certain about them.

Always Ask for references: Given that the advisor is going to provide a plan of action for your hard earned money, it is always preferable to look for references which could be counterchecked. A seasoned and professional financial advisor will have no qualms about providing a list of such references to new clients.

Look for academic credentials: Investment management and wealth advisory is a dynamic process as it deals with a lot of variables which are constantly undergoing change. This includes market movements, policy changes, investor sentiments and technological advances. Therefore, it is essential that a financial advisor has sound academic credentials backed up by a strong practical experience to cater to the needs of investors.

Compare fees and other expenses: Like all professional services, financial advisors also charge a fee for their services. However, given that your and your family’s economic well-being depends upon the financial planning; there is no harm in paying for it.  Remember that it makes sense to pay a small amount upfront rather than making an uninformed decision on your own and regretting later. However, do compare fees charged by some of the advisors and also check out their services.

Gamut of services: Ask about the range of services offered by the financial advisor.Some experts provide only financial recommendations, which means that if you will need to do the actual documentation and other procedural tasks while putting the financial plan in practice.Some advisors would offer expertise related to only a specific area like says in equity investing or insurance.It is important to check out the entire gamut of services before finalizing an advisor.


Whether you want to benefit from equity markets but don’t have of time to decide how and where to invest or you want to invest across various mutual funds for meeting your future financial goals, it makes sense to go for an expert financial advisor. Even if you don’t have much money to invest in near term, still it is recommended to seek such a service. Remember that the financial advisorplays the same role for wealth that you expect a doctor to play for your health. Learn to respect their knowledge base and ability to judge your financial well-being in an efficient manner. You may have some reservations about the likely course of action suggested by your financial advisor though at the end, the long term impact of the same would be in your favor. Kindly get your queries answered in a clear manner and remember to stay the course.

Blog by – Ashish Ajmera

Also read: IPO Investing: Here are some effective guidelines!
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