Good Financial Advisor – What should be the qualities that I should look to know whether my Financial planner / advisor is good or simply a Mutual fund distributor? I get this question too often and so I will list down few qualities that I see are a must for a good financial advisor. This is a quick post which will be updated with more details later on.
A good advisor should always enable their client / investor to make an informed decision rather than making the decision for them. This means that the advisor will educate the client and also provide choices to the client and have client make the decision. He should articulate clearly the pros and cons of the various options so as to enable client to understand them clearly.
Further he should offer sensible solution and find a way to address all aspirations of the client.
He should also cover unstated goals of clients and propose solutions that will help him in achieving those.
The complete financial plan that he builds should be unambiguous and articulated in a logical flow that will be easy for his client to understand and to act upon it. See this image for illustration purpose.
Needless to say, a good financial advisor will also be very transparent with his clients with respect to fees and the commission he earns from product companies such as Mutual Funds, AMC, insurance companies, etc
This post is not complete yet as I intend to keep updating it and make it a go to place where you can look upon all the qualities that a good financial advisor should have.Also look at my earlier post wherein I have covered How to choose a financial advisor in India – Click Here
Disclaimer: I am not your financial planner / advisor. Also, I am not SEBI Registered Investment Adviser. I write articles to share my opinion and experiences of managing money. The information and services may contain errors, problems or other limitations so I request you to contact your Financial advisor, CA or legal advisor for professional advice before making any financial decision. All views and opinions shared here are purely individual opinions. If you have any questions or concerns regarding this post then please contact me and let me know. Also please read a full disclaimer here.