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Article | Sip - Jan 01, 1970 | 05:30 AM

Expertise blended with experience – sometimes that’s all that helps to achieve financial goals.

We all know why we opt for a Mutual Fund. This is an entity that seeks to invest the investors’ money in a pool of funds and on behalf of the investors they channelize it into various securities as per the investment objective of the scheme of a mutual fund.

We also agree how a Mutual Fund (MF) accords us the feature of investing in complex financial instruments even though we may have no background or intelligence in comprehending them well.

That’s precisely the reason for having an advisor or fund manager too. A financial advisor provides financial advice or guidance based on their expertise. We need knowledge. At the right time. And we need someone with enough skills and a depth of understanding this complex and dynamic industry that only professionals may help us with.

We also aim to gain from someone’s pool of experience without having to burn our own fingers, and definitely not all of them.

This need is acute and deep, irrespective of all the technology and algorithms that the industry is rife with today. At least, a machine would definitely not know or care for the specific needs of a small investor or risk-averse individual.

Advisors also bring to the table that much-needed degree of dedication and grip when the question is about how to optimally manage a collective bundle of various investors.

Laymen investors are seldom well-equipped to take quick and complex decisions given the paucity of time and inability to track market-shifts the way a professional manager does. They have all the time, resources and adjacent tools to help them make their investments are agile and sharp and that’s why they are usually fully-focused on this field.

Here’s Why You Should Invest In Equity Mutual Funds

They also help considerably when it comes to garnering suggestion for portfolio allocation and individual goals.

Advisors utilize years’ worth of knowledge and those myriad cases with full-time dedication and attention. Regulatory environment also allows for stringent supervision of these professionals and ensures conduct that stays away from indiscretion, negligence and violations.

Just make sure you pick an advisor who would incline towards a long-term customer relationship instead of short-term gains. Do not fall for those who tend to make unrealistic projections on the possibility of generation of potential returns.

Optimism is good but too much of it is a red flag too. Pick an advisor, and pick a smart one. Just the way you are.

Disclaimer: Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

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  • Indian Mutual Funds

    Indian Mutual Funds have currentlyinvested about 1.35 crore (13.5 million) SIP accounts through which investors regularly invest in Indian Mutual Fund schemes. (March 2017. Source: AMFI)

  • AAUM

    Average Assets Under Management (AAUM) of Indian Mutual Fund Industry for the month of March 2017 stood at ₹19.26 lakh crore. (Apr 2017. Source: AMFI)

  • Equity-oriented Schemes

    Equity-oriented schemes account for around 32.8% of the industry's assets. (March 2017. Source: AMFI) Equity-oriented schemes derive 85% of their assets from individual investors. (March 2017. Source: AMFI)

  • HNI Investors

    HNI investors account for 20.98% of investments for a period of 12-24 months. (Source: AMFI)

  • Benefit of Index Funds

    Index funds usually have much lower operating expenses over actively managed funds.

  • What is Net Assets?

    This figure represents the fund's total asset base, net of fees and expenses.