Tips for Selecting A Good Financial Advisor


Financial Planning refers to the planning of your personal finances in order to achieve your short-term as well as long-term financial objectives. You can achieve financial freedom and security by investing your hard-earned money in the best possible manner.

Tips for Selecting A Good Financial Advisor

This involves analysing your current portfolio and adopting means for improving it to get maximum returns. Most of us either lack in knowledge or experience of good financial planning. This leads to a state of confusion as to which way to go and we are preoccupied with so many queries like :

  • Do I have a balanced portfolio?
  • Have I saved enough for the post-retirement expenses?
  • What about proper tax planning?
  • How to plan for children education, marriage etc.
  • What are the best investment options ?

Hence, arises the need of a FINANCIAL ADVISOR OR PLANNER, a professional who will guide you with his skills, knowledge and experience and help you build a good financial plan. A good Financial Planner will help you in building your Investment portfolio based on your financial goals, priorities, risk factors and the rate of returns.

Here are a few tips that you must go through while selecting a good FINANCIAL ADVISOR :-

  1. Educational Qualifications : This is the first and the foremost factor to be considered while selecting your financial planner. Anyone claiming to be a financial planner might not be so actually.So,do check for the qualifications.Professionals like CFPs(Certified Financial Planners) or having IRDA,AMFI,NISM certification have undergone elaborative programs and examinations before providing actual services. But, a CFP is considered better qualified to manage your financial portfolio.
  2. Prior work Experience : Do check for the prior experience of giving financial advisory services to various individuals. Check for how long he has been in the financial advisory field.You can ask for supporting documents as well.
  3. References : You can get references of his earlier clients in order to check his honesty, authenticity and specialization .A check on past performance will be a guiding factor for selecting a good financial planner.By discussing with his prior clients you can get to know about his knowledge and expertise.
  4. Analyses Your Financial Goals, risk and expected returns : A good financial planner is one who deeply analyses your financial goals based on your risk horizon. He considers your goals, how much risk you are ready to take and what are your expected returns on investments and then lays down a financial plan that suits you.
  5. Compensation : Lastly,you should ask for the mode of compensation/fee to be paid.Whether their income is based on client service or do they get any remuneration in the form of commission also.If the fee fits into your budget,then only you can go for it.

So,you might have to spend some time to identify and select the best financial advisor to manage your portfolio. Beware of fraudulent agents, who dupe investors in the name of selling various financial plans.

Choose a well qualified and experienced Financial advisor who will prove beneficial for taking effective financial decisions in the long run. Better Still give out a try to Bodhik Financial Advisor if you are in India.

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