When it comes to investment, the general advice is to be cautious. However, there are recurring doubts among novice investors about whether to opt for an investment advisor or do it yourself.
While managing your finances might seem like the best option considering that it allows you to save on investment advisor fees along with empowering you with the freedom to make your own decisions. It nevertheless poses a threat of inappropriately allocating finance and not preparing the portfolio to meet market fluctuations.
At Paisa Invest, we recognize the same, which is why our in-house experts have carefully created a list of advice to follow while hiring an investment advisor.
Tips for appointing the most reliable investment advisor in Kolkata:
Credentials: Always opt for a certified financial planner. Besides, analyze the background and experience of investment advisors, both individuals, and companies to determine if they have any disciplinary actions taken against them. A disciplined investment advisor may not be the best option to go for when looking for a reliable investment advisor in Kolkata.
Reputation: Locally reputed investment advisors are the most reliable to work with when it comes to managing your money. That is because it takes years of good work to build a reputation, and since they are locally available, the investor will have the ease of approaching them.
The upfront fee for the services: It is always advisable to opt for fiduciary advisers as they would charge a quarterly fee calculated as a percentage of the assets your advisor is managing rather than working on commissions such as the commission-based advisors. Commission-based advisors might steer their clients towards products that help them earn profits rather than advising the client towards appropriate financial decisions.
Will not advise you to buy closed-ended funds: Close-ended funds have high front-loaded fees and are likely to reduce the investment corpus of the investor. A reliable investment advisor will refrain from advising their clients to opt for the same that would negatively affect their financial portfolio.
They do not suggest NFOs: New Fund Offerings are tricky to opt for since they are relatively new investment options with no track record to compare their performance vs the peer group or the benchmark. A reliable investment advisor will not take a risk before carefully analyzing the performance of the fund in the market and more.
There be an unannounced break in your relationship cadence with the advisor: Most organizations have a set limit of years an investment advisor can practice in the firm or at the same division. When an investor appoints an advisor, he intends to create a bond where he can trust the latter with his assets. Having to work with a new or an unknown person leads a strain on the whole process.
Hence are the most notable tips as noted by the in-house financial experts at Paisa Invest that every investor should follow before appointing a reliable investment advisor in Kolkata.
Do you need professional advice to manage your finance? Contact Paisa Invest today!
