WHY DOES ONE NEED A FINANCIAL ADVISOR
People are all for DIY these days. Career oriented folks who are already reeling under their deadlines will find it difficult to spend time on choosing well-suited investments for the money earned, let alone monitor. That is where a financial advisor comes into picture.
Imagine having a corpus amount of around 10 or 25 lakhs.
A detailed analysis on the company is a necessity which an advisor will facilitate. S/ He can also guide you on managing your investments, allocating your assets wisely thus ensuring fruitful returns. Here, we will discuss the six benefits of having a financial advisor.
- Goal Based Investing
An advisor helps you define your investment goals better. Most investors who claim to have goals find it difficult to define them. Only when you define your goal will you be able to choose an investment plan accordingly. Defining the goal, creating a budget, deciding the holding period, allotting monthly or lump sum amount and choosing a suitable asset class – a good advisor makes your investing hassle free.
- Basic Knowledge to Choose Good Investment for you
One who possesses a basic knowledge about a financial product and identifies the best one for his/her client can be called a good advisor. They understand your investment goals and risk capacity and will find a suitable investment plan accordingly. It does not end here; they can also explain to you in simpler terms on the effectiveness of the plan as well as execute it.
- Save Time, Avoid Tension
You can avoid unnecessary stressful moments by having an advisor. Choosing a suitable investment plan demands time and expertise. By doing this job on your behalf, he/she helps you dedicate your time entirely to other purposes.
- Monitor the Portfolio
You cannot relax after choosing a suitable portfolio. It must be monitored and corrected in timely intervals. Most of the investors do not find time because of their busy lives. Having an advisor eases the situation as they do the monitoring for you.
- Goal Matching
Once the goal is identified, it is important to check whether the growth of your funds is in proportion with the goal. A good advisor makes this goal matching process easier.
Once the investing and monitoring of the funds is over, asset allocation is a crucial step.
A financial advisor will ensure proper allocation of assets after analyzing the current situation. As someone who understands your goal and risk-taking capability, they can assess the amount allocated to property, equity and debt. As and when the goal is in your reach, they can advise you to shift from risky assets to non-risky assets thus correcting the asset allocation accordingly.
A good advisor understands your investment objective, risk capacity and holding period therefore helping you choose a fund. It is not that choosing a fund of your own is an impossible task. However, it is wise to seek the expertise of an advisor if your corpus fund is more than 10 lakhs.