How to Search for The Best Investment Advisor?

How to Search for The Best Investment Advisor?

An investment advisor or a stockbroker is a person who makes investment recommendations to his clients by doing a security analysis in return for a fee. Hiring an investment advisor implies hiring a person who will manage all the fund flow of your family or company. One shall hire an experienced investment advisor with a good prior record of making reliable investment advice with a decent experience in the industry and offers excellent investment advisory services.

Ways to search for the Best Investment Advisor

Following are some of the ways by which one can select the best investment advisor:

1.      Understanding the types of Investment Advisors:

There are various kinds of investment advisors in the market. Some have expertise in financial planning, while some are versed in retirement income planning. Some are good at making futuristic investments while some can prepare the whole financial model for a company or even a home. Thus, it becomes important to know the kind of financial or investment advice one needs.

2.      Seek Investment Advisors having Reputable Credentials:

Verifying investment advisors' credentials is an important step as credentials can be bought easily in the market through undesirable methods. Some of the reliable credentials can be CFP (Certified Financial Planner) or PFS (Personalised Financial Specialist) or CFA (Chartered Financial Analyst) Certificate. These certificates are obtained after giving examinations that showcase the investment advisor's proficiency in the respective subject matter.

3.      Going through the process of compensation of Investment Advisors:

There are different compensating investment advisors like charging a fee based on assets, hourly charges or commission participation, but the most genuine way is the fee payment.

4.      Using Search Engines to Screen the Criteria:

Doing online scrolling is a great way to shortlist the number of investment advisors. One can look for specialised investment services on the internet and shorten the number of options to select the best investment advisor.

5.      Ask some questions before hiring an Investment Advisor:

One should ask some specific profile-based interview questions to investment advisors to determine their communication style, credentials, potential, and past client reports. The basic behind this procedure is to get an idea of the investment advisor and his behaviour.

6.      Verifying Credentials and checking for Complaints:

To confirm the legitimacy of the investment advisor hired, one shall check the previous complaint record of the advisor with institutions like FINRA, SEC or the Board of CFP.

7.      Learn how to spot fraud risks:

One shall never give the account details or personal bank IDs to investment advisors. An investment advisor just manages the financial management or prospective investment strategies of his client; he has no linkages with the client's personal details.

One can easily find a reliable investment advisor india by considering the above factors in mind. Hiring a good investment advisor helps in making a good investment that helps in generating high returns on the money staked.

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