Five ways to evaluate a Financial Advisor
As the focus for distribution of retail financial products shifts from commission-based to fee-based advisory, it is important for clients to understand the value of advisory and differentiate between financial advisers and mere product pushers.
October 12, 2011 / 17:29 IST
Rajesh Krishnamoorthy, MD, Fundsupermart.com
As the focus for distribution of retail financial products shifts from commission-based to fee-based advisory, it is important for clients to understand the value of advisory and differentiate between financial advisers and mere product pushers. Presently in India, banks, stock brokers, agents, national distributors, online providers and independent financial advisers are the various available channels. Majority of the times, we consult our family and friends before making an investment decision or choosing an adviser. So, the advisory system normally works through a solid referral system. Secondly, trust is important for building a long-term relationship between the adviser and the client, essentially because the client shares confidential information about his/her personal assets and obligations with an adviser. Eventually, the objectives of the adviser should be aligned with those of the client for a truly unbiased advice. Let
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