With increasing income levels and investment options, it is crucial to seek out professional help to manage your finances. Traditionally, friends and family have been a source of guidance for most of us, however, this is changing rapidly. Today the demand for the more customized and technology-driven solution is on the rise. With the right balance between cost and value addition lies the key to professional advisory services.
The most common place where people end up with their investment are bank fixed deposits or banker (advisor) sold insurance plan. This strategy is most convenient but least helpful at multiple levels. Let’s see what advisory services are available to an investor and the range of services/advice they give. Some may be accessible to all, other may be for select group of investors.
The table below lists a few important considerations before you choose any advisor/advisory service.
|Banks – Retail||Nil||No||Many||Banking||Insurance|
|Banks – Wealth||25 lakhs||No||Few||Banking||MF, PMS|
|IFA’s||Varies||No||None or Few||Insurance & Trading||MF|
Selection of the right investment advisor will depend on these factors but not limited to the above list.
It is important to note that online portals and apps, provide a lot of flexibility in terms of min investment and goal-based planning. However, they are generic in many ways and tend to give similar results. Banks – Wealth Arm, on the other hand, can provide a whole lot of product and services but have a minimum investment requirement and will only touch big clients.
Banks retail division and insurance agents they both are mostly sales driven and will tend to sell insurance/ ULIP policy. IFA’s (Independent Financial Advisors) is the emerging category of advisors which focus mostly on client and quality of advice. They are smaller in team size and rarely have any minimum investment criteria. At FinvestR we provide a host of services which focus on goals, asset allocation, and right product mix.