Do you ask these questions while choosing an investment guru? There’s an unprecedented rise in the number of wealth management advisors and investment consultants today. Even every second advertisement that appears on television concerns investment advisory firms or wealth management experts. Wealth management advisors often guarantee returns on your investment but with the kind of volatility the market shows, one should never take the word of advisors who guarantee ‘double returns in 3 months’ or ‘triple returns in 1 year’.
There are loads of so called investment advisors who neither possess a degree nor the knowledge. That’s why it is vital to ask these 7 all important questions that can go a long way in determining whether the person is an Investment Guru or a seasoned thug!
1) What is your experience? – Experience is the most important criterion for selecting a financial expert. Someone who’s been in the market for long would’ve definitely handled the profiles of high profile as well as low profile investors. Secondly, experienced advisors can, out of instinct, sense it when there’s a major correction to come in the market. Lastly, their sheer experience makes them insightful regarding every aspect. 2) The educational background? – There are scamsters aplenty in the market and you need to be wary of people who sit inside plush offices under the pretext of being financial investors. Since it is a lucrative business, a lot of people have entered this field and are doling out free
financial advice to customers. If the so called financial advisor has studied financial and accounting subjects at bachelor’s level and supplemented the same with additional diploma courses and/or a master’s degree, he will have a deep understanding about financial investments. 3) How many clients in the kitty? – A financial advisor should have a decent amount of clients. Too many clients will mean that the advisor’s attention towards you is divided whereas too little would mean that he doesn’t have a market reputation. The case is not the same if you visit a financial advisory firm. Then it is better to visit one that sees a lot of clients. 4) Are you affiliated to just one company? – Financial advisors who are affiliated to a single firm will offer you products and services of that particular firm only. However, independent advisors will help you to build up a strong portfolio by diversifying your investments. This minimizes risks and enhances your chances of profits. Even if one company fails, policies and shares of another company can ensure heavy profits. Make sure you have an advisor who can invest in several financial options.
There are several other all important questions that you might want to ask. Make a checklist of all such questions that come to your mind so that you can evaluate a financial advisor better.
Published on Jul 4, 2013
The educational background? – There are scamsters aplenty in the market and you need to be wary of people who sit inside plush offices under...