3 Ways a Financial Advisor adds Value to Investors

Posted On Wednesday, Aug 19, 2015


The 8 year old daughter of the neighbor always had an inclination towards music. Last month her parents thought it was time for her to start lessons on the piano. They discussed the matter with friends, parents of her school mates.... and received tonnes of advice (often conflicting too ). Some suggested to hire only the best instrumental tutors around, others suggested that it was better to take lessons online, still others advised them to purchase piano lesson materials and allow her to learn at home, at her own pace. Her parents however thought it best to go the conventional way. A piano tutor would bring in a whole lot of added benefits that non-human software or materials cannot provide. And so they enrolled at an instrumental music academy to learn from a personal coach.

Having a financial advisor is somewhat like having a music tutor for learning an instrument. You could learn to play the piano by only referring to notes. In this day and age it is possible for one to garner all the information and knowledge required, from online and offline resources. However an advisor does the role of a coach hand-holding a student, persuading when necessary to practice consistently, otherwise just overseeing, that the lessons provided one day make a skilled player of the student.

A skilled advisor would be trained and be insightful to coach you in various stages, right from streamlining your goals to getting to the nitty-gritties of choosing the best investments, executing them, sorting tax liabilities, and so on. Below we have highlighted 3 important advantages of having a financial advisor to guide you in matters of investment –

1. Strategizing action-plans for life-long goals
A good financial advisor understands your goals, your dreams and the objectives behind your savings and investments. He/she would then chart short- & long- term plans, strategies to help you achieve those systematically, within a timeframe. Having a strategy helps to avoid being swayed by emotions while investing. An advisor brings objectivity to your financial actions, weighing crucial factors, doing the necessary research etc. so that you have all the information required while making the important financial decisions.
Investors from non-finance backgrounds often find the jargon, procedures and mandatory legal requirements involved in financial transactions quite intimidating. The advisor can educate and simplify terms and procedures for such investors. A good financial advisor thus does more than merely suggesting mutual fund schemes and shares for investing; which is the role typically (and unfortunately) played by a financial distributor.

2. Comprehensive approach to finance
In an orchestra, numerous artists perform together to create enjoyable music for the audience. The beauty of an orchestra lies in the synchronization of the melodies of the violins, cellos, piano and the percussion instruments. The instrumentalists in the orchestra may be accomplished solo players themselves, but to experience a great orchestra it requires a knowledgeable musical conductor who directs the performance with hand gestures, that guide the notes and beats into a melodious sync.
A financial advisor does just that. He/she plays the crucial role of taking a holistic view of your financial landscape and merges different goals with the right actions. He/she would ideally take stock of your investing needs, insurance requirements, minimize tax liabilities as well as assist in will & estate planning.
Many of us, if we took a good look at our finances would find gaps in our financial life. A goal for which we are grossly underprepared, insufficient life cover, family members not adequately covered for health risks, no rainy day funds, pending tax dues we weren’t even aware of. An advisor can help our personal finances take an organized look.

3. Proactivity
A good conductor does most of his work before he ever meets up with an orchestra - studying, exploring and analyzing the music plan, seeking to understand the orchestra composer's vision. Your financial advisor too, will help you be prepared ahead of time to address and manage life situations. She/he would regularly assess any potential changes coming your way and work with you to plan for it financially. He/she would act as a behavioural coach to keep you focused on your objectives.
While proactivity is a quality every individual investor must inculcate, most of us might willingly agree with the popular saying, “If it weren’t for the last minute, nothing would get done.” For those of us who admit it, having a financial advisor would be very beneficial, to keep the house in order.

Thus a qualified advisor can play a positive role for one’s finances, even for the best financially qualified professionals among us. For those from non-finance backgrounds the benefits simply multiply. We encourage you to work with a good financial advisor for your investments and personal finances.

In case of assistance with investments at Quantum you can reach us through the Contact Us form on the homepage or email us on [email protected], and will be glad to help. Existing investors can directly connect with their Relationship Manager by sending the SMS text AskRM to 9243-22-3863 from their registered mobile numbers, and receive a callback.

Disclaimer, Statutory Details & Risk Factors:

The views expressed here in this article / video are for general information and reading purpose only and do not constitute any guidelines and recommendations on any course of action to be followed by the reader. Quantum AMC / Quantum Mutual Fund is not guaranteeing / offering / communicating any indicative yield on investments made in the scheme(s). The views are not meant to serve as a professional guide / investment advice / intended to be an offer or solicitation for the purchase or sale of any financial product or instrument or mutual fund units for the reader. The article has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Whilst no action has been solicited based upon the information provided herein, due care has been taken to ensure that the facts are accurate and views given are fair and reasonable as on date. Readers of this article should rely on information/data arising out of their own investigations and advised to seek independent professional advice and arrive at an informed decision before making any investments. Please visit – www.quantumamc.com/disclaimer to read scheme specific risk factors.

Above article is authored by Quantum.

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