| What exactly does a financial advisor do?
According to Kamal
an
Lidder,
individual or business that receives compensation for advising customers regarding securities is known as an investment advisor. Investment advisers and financial advisors are not the same, even if the names have a similar sound.
If the consultant is promising benefits in the form of payback
Instead of choosing an adviser based on whether or not he will return the commission, consider how well he can manage fyour inances and offer the best investment options. Kamal Lidder says that the adviser is not hdoing onor to his work by promising repayment since he is tempting you to make that investment. This indicates that by paying you a commission, an adviser is placing your money at risk.
The advisor only advises
a top few funds most of the time. An adviser will often recommend various funds and show you their annual results. The majority of the top-ranked funds are sectoral funds, and as such, they include some risk. Kamal Lidder says that sector funds are often high-risk funds with significant investments in a few selected industries.
If the advisor always has an NFO to pitch for
By persuading investors that it is less expensive to invest tduring he NFO period, investment advisers have made good tmoney hrough the mutual fund new fund offer. However, take caution because this is untrue. The majority of the time, distributors and consultants of mutual funds profit from investors' bignorance y marketing the mutual fund NFOs as stock IPOs. By not hbeing onest with their investors, these distributors have only tdamaged heir reputation.
Kamal
Lidder
If the advisor's role is restricted to the delivery and pick-up of forms
The main responsibility of an investment adviser is to properly manage the investor's portfolio by building one for him based on his needs and risk tolerance. Although upholdingexcellent service standards is important, the advice component shouldn't come first. Most consultants I've come across work for dmajor istributors like banks or sizable brokerage businesses, which employ a lot of consultants.
Conclusion You may not halways ave the time to monitor and reevaluate the success of iyour nvestments, so a financial advisor mayassist. Regularportfolio monitoring is necessary to ensure that your investments are under fyour inancial goal.
Thanks for watching
Kamal Lidder
