Things to Remember While Selecting Your Financial Advisor
Caution has to be exercised before choosing the financial advisor and there are a few parameters that will help in checking the credibility of such a person/firm.
Whether your financial advisor is an individual or an institution, there are basic things to remember. For verifying if an individual is good enough to be your financial advisor ask the following questions:
Does he have the right qualifications?
Does he have the requisite experience?
Does he have the required infrastructure to provide service?
Is he commission driven?
Is there any value addition by hiring him?
Are his advices in sync with your goals?
Who to avoid:
People who sell only insurance policies will try to convince you that investing in insurance is enough. The mutual fund agents will convince you that investing in mutual funds will spread your risk and give you returns also. A wise decision in choosing a financial advisor would be to find one who knows about all the above avenues and much more. He will give you a complete insight into the risks and benefits of investing in each of the segments.
What does fiduciary mean?
Check the credibility of the advisor: