What is a financial advisor?

A very pursued work in the present day and time. Financial advisor- the job title sounds cool, doesn’t it?

What is a financial advisors?

What do financial advisors exactly do? 

Financial advisor – Today, more and more people are concerned about their retirement plans and financial stability. About this, there is a requirement for monetary experts who can exhort and direct their clients to achieve their monetary goals.

The term monetary counselor has a wide degree. It can encompass a lot of job titles that fall in the finance advisory line. A financial consultant is synonymous with a financial advisor and is often used interchangeably.

A person might want to have a certain amount of money by the time he retires. Or someone might want to earn enough to back up his child’s student loan. The financial objective can be anything. More often than not, the general people are not equipped with apt financial knowledge. Hence, they seek some important help with financial-related work.

These finance professionals are expected to formulate an investing plan to fulfill their client’s financial objectives.

The plan may include investing in equity, debt or govt bonds, or even a term deposit. This is according to the risk appetite of the clients. Risk appetite may change from time to time and so do the investing choices of the clients. Financial advisors are supposed to take in crucial knowledge about their clients- age, income, savings, expense habits, lifestyle, etc. and then analyze it to come up with the most effective plan for them. Financial advisors are also supposed to enlighten their clients on tax-saving hacks.

Who can become a financial advisor?

A financial advisor needs to continuously update his knowledge of the financial markets. Having a relevant financial degree like an MBA, CFA or a Bachelor’s program in finance is sufficient for this job. But in certain countries like the USA, financial advisors need a license to kickstart their career.

Analytical thinking, number crunching, excellent presentation, and communication skills are pre-requisite if one wants to be a successful financial advisor. Besides, you must have social or people skills as you would be attending one-on-one meetings. Developing a personal connection through discussion on various topics is a great way to ensure that clients come back to you again and again.

Financial advisors must be able to induce trust in the clients, both by words and by action. The best financial advisors are the ones who bring in the most fulfillment to their clients.

Financial advisors in India

In India, financial advisors work in the wealth management department of banks, insurance companies that provide financial services, and consultancy firms. While working under a bank or insurance company, financial advisors may be constricted to selling more of their company’s schemes. This is because the respective company can earn profits and the financial advisor’s success is determined by how many sales he made for that company. This may or may not be in the best interest of the clients.

Hence, to be a successful financial advisor, it is better to run one’s financial advisory firm.

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