All You Should Know About Mutual Fund Advisor

To achieve financial goals through investing, you need a professional’s guidance that can keep you on track for accomplishing our goal by advising you the best investment strategy. A professional mutual fund advisor can be your best bet. Read on, to know more.

Investing in Mutual funds can seem overwhelming, especially if you are a first-time investor. Many factors decide the success of a mutual fund such as past performance, risk, market conditions, etc. To have a thorough understanding of these factors would require a lot of research and experience. What if you had some help in making the most informed decision when it comes to investing?

A fund advisor is a qualified professional who analyses your current finances, understands your investment goals and guides you to invest in the best mutual fund to build a portfolio suited to your requirements and financial goals. They have an excellent understanding of various types of mutual funds are abreast with the market conditions to help you select the right fund for investing.

It is the fiduciary duty of an advisor to ethically and morally disclose all aspects of an investment to their clients.

While a fund advisor helps you select the right fund and helps you build the right portfolio, a fund manager is responsible for making investment-related decisions of a particular fund.

Roles of a Fund Advisor

• Bridging the Gap Between Goals and Risk

  A fund advisor will first evaluate the client’s current situation. Apart from financial data, they also assess their financial goals, risk-taking capability, financial responsibilities and personal preferences. Based on the analysis, a good fund advisor will educate the client on how to reach their goals and bridge this gap.

• Charting an Investment Plan

  Based on the clients’ needs, the fund advisor will evaluate current market conditions and come up with an ideal investment portfolio for the client. They keep abreast with the latest financial news and keep track of trends. They advise their client on how to diversify their portfolio to minimise risk.

• Course Correction

  Your fund advisor will keep track of the minute details of your finances. They have a record of your portfolio along with its composition. They also measure the performance of your portfolio regularly to make sure that you are on track with your financial goals and suggest any course correction measures if any.

While a fund advisor helps you select the right fund and helps you build the right portfolio, a fund manager is responsible for making investment-related decisions of a particular fund.

• Qualified, Experienced and Paid:

  A mutual fund investment advisor must be certified from the NISM (National Institute of Securities Markets) to become a qualified advisor. Secondly, while there are fund advisors who offer free services, the reputed ones would charge for their services. They either charge commissions or fixed fee or both. Lastly, fund advisors must be knowledgeable and keep abreast with current news.

• Understands Risk:

  The best way to reduce risk is by investing in multiple options. This is known as diversification. Your fund advisor must be able to minimise your risks and maximise returns by diversifying your portfolio.

• Accessibility:

  Before deciding what’s best for you, your mutual fund advisor must understand your goals in detail. Apart from the initial analysis, they must communicate with you regularly to keep track of your short and long-term goals. Most importantly, they should be accessible to you.

• Active Portfolio Management:

  Fund advisor should be able to update your portfolio based on your current goals. They should be vigilant and pull out of any risky or failing investments promptly.