INSUBCONTINENT EXCLUSIVE:
With market volatility on the rise, many investors want professional help in choosing the right product
It may make sense to choose a financial adviser who can help you with asset allocation, invest as per your time horizon and help you choose
ET gives a lowdown on the checklist when choosing a financial adviser
What is the background of the distributorWhen it comes to investments
you need a person you can trust a lot
A lot of this can be known by asking people around for a right reference
Of the people referred check the qualifications and experience of the adviser
He should have good knowledge of different asset class such as equity, fixed income and gold and worked through multiple cycles
He and his team should be in a position to decipher and understand how these asset classes would be affected by various domestic and
The adviser should be able to identify products that will meet your life stage requirements as and when they are needed.
How accessible is
the adviserThere is no limit on the number of clients which an adviser can enrol or engage with
It should not be that you engage with one only to realise that he has no time for you after a few months
The adviser or his team should be able to answer your queries in a reasonable period of time and should be accessible by whatever means of
communication you choose which could be telephonic, email and meetings
Time is of essence in the financial world and he should be able to execute your investments in a short turnaround time.
Does your adviser
offer products of all fund housesA fund house may have that one product in which it does well and you may want that
Hence ensure that your distributor can offer your products from all fund houses and not just 2-5 fund houses.
What is his past track
recordThere is no official website which tracks advisers in India
Hence it is important to ask for referrals or know the past background of the adviser
Use social media websites, to understand if anyone has recommended the adviser or his firm
That will give you some idea of his strengths
Check online for referrals, ask your friends or relatives for references, how long the adviser has been in business and his way of
operating.
How does the adviser earn his incomeA good adviser needs to be compensated well, if you want his time and attention
Ask your adviser if he uses a distribution model, where he gets commission from the fund house for every investment that you make
Alternatively some advisers charge you a fee for the service, depending on the time they have to spend with you or your personalised
There are many online portals that do help you make a financial plan, by gathering data from you and it could be free, while there are
seasoned financial planners who could charge a fee for the same.
