To invest in Mutual Funds or any other investment vehicle, one must have sufficient knowledge and understanding on how to invest and manage their portfolio. It is not a mammoth task to make investments and keep track of how the portfolio is progressing; but if one lacks the basic concept of investing then it can definitely not be in the best of the investor’s interest. To counter such roadblocks on your journey towards wealth creation, it is suggested to hire a financial advisor who could help you to maintain your fiscal fitness. Read 5 Key reasons to hire a Financial Advisor here;
It’s your ‘Choice’ and that’s made easy
Like mentioned above, it’s not hard to invest in Mutual Funds, but arriving at a fitting scheme from the plethora of offerings from more than 40 AMCs and countless Mutual Fund schemes could be slightly hard for a novice to select from; especially then when the investor has little to no understanding on how the investments are to be done. It’s also tedious for a lone investor to visit all of them individually so the Financial Advisor offers the investor the variety of schemes from different AMCs the investor was looking for all under one umbrella, this is quite similar to visiting ten different footwear stores; while a ‘one-stop solution’ is to step into one anchor store where all brands are readily available. Here is where the financial advisor fulfils his foremost duty, i.e. to assist the investor or client to make a correct choice. For an investor, it is advisable to take time to select the right financial advisor, who would in return, facilitate his clients to make the right investment choices.
Strong ‘Conviction’ precede great actions
A Financial Advisor does not only possess a catalogue of schemes to choose from, but one who holds his conviction firmly to steer his client(s) in the right direction. Since there are countless equity schemes to plough one’s assets in, it’s the responsibility of the financial advisor to gauge the performance of the scheme in accordance with the clients/investors financial goals, risk appetite amongst other factors. His ability to assess the quality of a scheme and the compatibility of the scheme with the clients’ preferences rely strongly on his (financial advisors’) qualification, meticulous research, expertise & layers of experience that make him suitable for this role. He walks his client through the process behind the performance of any Mutual Fund scheme. A financial advisor’s role is similar to that of a doctor; because like the latter the financial advisor understands his clients requirements and queries, makes an assessment and it is his conviction that assist the investor to invest in the best scheme amongst many, just like the doctor who prescribes an appropriate remedy.
When needed, there is ‘Counselling’
Besides facilitating the investor to make a selection or understanding the investors’ requirement, the financial advisor plays yet another role; and that is of a counsellor. Since an investor has made his mind to plough his assets and reap the best, it is the duty of the financial advisor to counsel his client till he achieves his financial goals. Also specifically during market correction, it is quite possible that an investor can distraughtly redeem his money, without even giving a clear and calm thought on his actions and result in deviating him from the path to achieve his financial goals. It is here where the role of the financial advisor is given utmost importance. In times of market fluctuation, or during a routine check of the portfolio, the financial advisor counsels the investor to remain calm, be unemotional, act logical, and stay invested in his quest to accomplish his financial mission.
To keep a track, it’s all ‘Consolidated’
A Financial Advisor does not limit his responsibilities of helping his client make right choices or paving the right path. Taking into account the initial phase of investing, it was quite complicated to select from the numerous mutual fund schemes and the endless list of AMCs and moreover, keeping a track of the transactions along with other details. Very importantly the advisor has to ensure that any transaction or transition is taken carefully and transparently.
The ease of ‘Convenience’
It’s good to be well-versed and aware of the subjects you’re interested in. This could range from swimming, painting, working out in a gym etc. This could also be investing in Mutual Funds. Learning on your own is not wrong but quite often when we wish to learn something new, we tend to hire someone who could help us in learning it faster without making too many mistakes. This is the ease of convenience offered by a professional who right from the beginning till the end helps you achieve your goals, and this is applicable on the role of a Financial Advisor too, who helps make right investment decisions, helps you learn more about Mutual Funds, the investing space and other investment vehicles to enhance your knowledge.
