5 reasons you need an investment advisor
5 reasons you need an investment advisor
Plumbing, carpenting, or learning a new vehicle – we depend on a professional to carry out simple to important chores of our life. However, when it comes to investing, we still depend on friends and family, or the wisdom passed on by our seniors.
Have you ever wondered how easy your life would get if only you had someone who is professional and fiduciary to manage your investments? While there are many, here we mention five reasons you must stop taking the ‘good advice’ available from your trusted sources and depend on a SEBI registered investment adviser.
Who is a SEBI Registered Investment Advisor (RIA)?
A Registered Investment Adviser (RIA) is a person or an organization that provides investment advice to individuals. RIAs have a fiduciary duty towards their clients to give financial advice in the best interest of their clients. They are registered with Securities and Exchange Board of India (SEBI). They have more obligations towards their customers than mutual fund distributors due to the compliance requirements they have to adhere to.
An investment adviser is SEBI-compliant
The first concern you may have while hiring a professional to manage your hard-earned money is their accountability. To end your worry, a SEBI RIA ensures all their advice for your investment is documented as per SEBI guidelines. This makes them dependable for their advice.
Your goals and risk profile are their priority
An investment adviser will always learn about your goals and risk appetite before issuing an advice. By law, they are required to ensure their investment strategy is in favour of your goals. This will help you form a robust and trustworthy investment strategy that navigates tough tides smoothly.
You get transparent investment advice
You can rely on an RIA’s advice as they are audited by the SEBI. They will not just verbally make suggestions but share written investment advice. This protects you from any possible mis-selling that happens through bank RMs or distributors. An RIA earns no commission on suggesting a product and hence, you may be rest assured knowing that the advisor only has your best interest in mind.
Professional management of your assets
Your hard-earned money surely deserves someone who knows the workings of the financial world at fingertips. To earn a SEBI registration, RIAs have to go through stringent due diligence processes. They are well-updated and aware of any changes in the regulations making it easy for you to make decisions timely.
Your advisor is always thinking about your money
For an adviser, you and your goals matter. Their goal is to help you grow your money, find ways to save it and ensure your ad-hoc money requirements are taken care of. It’s a long-term partnership. Plus, you’re always protected by SEBI.
The bottom line is that if you’re serious about making good investment decisions, it’s worth hiring an advisor who can help you create a solid plan for your money and stick to it over the long haul.
