The role played by investment advisors has assumed significance in recent times. Factors like rapidly changing market conditions and availability of various investment options have necesseciated the presence of a sound and well-informed investment advisor.
We present a checklist of 'must haves' for your investment advisor.
1. Is your investment advisor qualified?
Advisors selling mutual fund schemes should hold the required qualifications. The Association of Mutual Funds in India accredits individuals who are successful in the qualifying exam as AMFI registered mutual fund advisors.
Find out if your agent holds the mandatory credentials. Similarly ensure that the advisor is not an individual who peddles investments as "on the side" activity. Acting on the advice offered by an individual who doesn't hold the requisite knowledge could spell disaster for your investments.
2. Will he provide investment solutions?
Providing investment solutions is a completely different ball game as compared to simply selling investment products.
Check if your investment advisor offers you the entire range of products ranging from mutual funds, bonds to fixed deposits i.e. is he in a position to offer you all the offerings to construct the ideal portfolio?
More importantly your investment advisor should help you attain the ideal asset allocation. The various investment options he offers you need to be customised to your needs, objectives and risk appetite.
On the contrary if your advisor uses the 'one size fits all' approach, then you are probably dealing with the wrong advisor.
3. Does your advisor provide value add services?
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