To navigate the world of finance, you need a financial advisor to help them choose the right product.
A person should start investing with their financial goals, risk appetite, and age in mind. To navigate the world of finance, you need to have a financial advisor to help them choose the right product.
The investment world offers a plethora of different products, which begs the question of where to invest, how much to invest, how many products and product categories are needed to diversify your portfolio and what asset allocation strategies to adopt. . All these questions can only be resolved by a financial advisor, taking into account the investor’s situation.
Many investors think they can manage their finances on their own. However, this is not a good idea, as you need to be familiar with your finances, the stock market, mutual funds, etc. It is also important to have a good level of temperament in order to make the right decisions. Some investors blindly invest in the winning stocks / mutual funds from the previous year, but don’t know the basics of the game – which the best performing stocks or mutual funds do not guarantee they will stay on top for. always. It is very important to build a well-balanced portfolio that is able to withstand volatility and generate good average returns.
Now you may be wondering, since there is a lot of information available on the net, why would you need the advice of a financial advisor?
Suppose Raj has a list of goals, such as buying a motorbike, taking a vacation with his family of three, and planning his child’s college education. He should approach a financial advisor so that he can build a portfolio containing products tailored to achieve those specific goals.
Let’s understand this in detail: Raj’s plan to fund his child’s education, still ten years from now, is his long-term goal. To achieve this goal, he may consider investing in stocks. Raj might not know whether to invest in stocks or debt. Additionally, Raj might have a hard time deciding which stock / fund to invest in. This is where the financial advisor comes in, and he will help Raj find solutions to these problems.
Here is a list of areas where the financial advisor plays an important role:
Building a strong portfolio:
The financial advisor gives the right advice regarding the investment according to his needs. This helps build a strong portfolio that helps meet financial goals on time.
The financial advisor has the skills to study the markets and make investment decisions accordingly. They follow several trainings and certifications to become a financial advisor. This not only maximizes the returns of your portfolio, but also avoids investment mistakes. A small number of investments in suitable products can make a significant difference than investing in products that are not suitable for your needs.
Monitoring your portfolio:
As time is always pressed, investors may not always be able to monitor their portfolios. Monitoring a portfolio involves reassessing the investment performance of the financial product and also ensures that your investments are aligned with your investment objectives.
One-off portfolio takeover:
A financial advisor can suggest portfolio change recommendations based on market performance and expertise.
You have to start investing as early as possible to build a rich future and take advantage of the power of capitalization. A financial advisor is recommended to create a financially secure feature.
The author is co-founder, Tarrakki
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