A happy journey is marked by good guidance, and it stands true for all journeys, even Mutual funds. It’s always suggested that you get a financial advisor, especially if you’re new to Mutual funds, but it’s just as important to make sure that you find a good one. Though all advisors are obliged to comply with the Code of Conduct for Intermediaries of Mutual funds, it should not stop at that. So, before you zero down on a mutual fund advisor, look for some of the following qualities in them:
- When you look for a good doctor, you check their credentials and experience. The same goes with the financial advisor as well. Make sure he has sound experience with mutual funds and different asset classes. He should be able to assess how different events affect different products.
Professional behavior and accessibility
- An expert financial advisor should be easily accessible. He should be able to answer your queries and explain how mutual funds and various products work in an easy way. Also, the queries should be answered within a reasonable period of time.
- No one likes to share personal information with anyone. The financial advisor has a lot of information about your funds so his track record should be clear about how good he is with confidential information.
- The financial advisor should have sound knowledge of all the available options in the market and not just one or two. He should be able to understand your financial goals and help you invest in the right funds. The suggestions should not be based on personal gains or commission-driven.
No high claims
- A mutual fund advisor should not make promises of returns and other features that can’t be delivered. He should not hide the underlying risks or any terms or conditions related to the product. Doing so is punishable by SEBI and AMFI.
- It is a very unfortunate that we do not have a proper ranking system for a financial advisor. Thus, choosing the right advisor can be a difficult task. You should try and check the referrals and talk to old clients of your financial advisor.
It’s said that well planned is half done and thus make sure you put some effort in finding a good financial advisor who doesn’t just help you before making an investment but afterwards too.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.