Role of a financial advisor and planners has become more significant in the present financial world. Earlier, financial advisors were mainly entrusted with the work of buying and selling stocks and bonds for corporate and businesses but now they are playing a much bigger role.
Financial advisors are professionals who not only take care of your assets and investments but also try to maximize its value over the period of time. These advisors serve individuals, corporate and small businesses or non-profit organizations. Due to todays unstable market scenario, people have started relying qualified professional only instead of going by their own instincts. These experts work on commission basis, fees basis or even in the combination of both.
Why do I need a financial advisor?
It might come to your mind that whenever you go to buy an insurance policy or a mutual fund, their executives are already there to help you select the fund. They explain the investment details, formalities and assist you throughout the process until you buy that particular product. But are they really thinking in your interest? Do they understand your investment needs and goals? Do they care for your hard earned money? Answers to all these questions are No. They are just fulfilling their work duties to earn their commission. Why a particular mutual fund company or an insurance company recommends only their products to their customers. There is no guarantee that they will give you unbiased information. You cant trust them. An independent advisor works in your interest. He studies your present financial situation and then suggests investments that are best for you. They help you in achieving your financial goals in a specified time period.
What kind of advisor you really need?
Dont just go to any financial planner. Understand your requirements for which you need the help of a advisor. Look work experience of that professional you are going to take advice. Look for his past clients and also present clients to understand his specialization. This will give you a good idea whether you should choose this planner or not to manager your finances. Some advisors specialize in securities or other areas. Some serve mainly big business houses then some work with retail or individual clients. You can search about them, study their portfolio and respective results.
Though financial advisors are very through and focused in their work but its always great to keep yourself updated about your finances, investments and the current market conditions.