Hello Readers!
Mutual Fund Assets have become a popular investment instrument among investors today. Many investors are moving towards mutual funds in order to achieve their goals, whether long-term or short-term.
The mutual fund makes the process of investing easy and convenient for investors, but when it comes to tracking your mutual fund investments, investor often find it difficult to perform. Thus, they look towards the professional management service available by mutual funds. The investors look for an advisor who can help them to manage their investment.
But here the question is how to select the best mutual fund adviser for your investment from the pool of mutual fund adviser. Through this article, we are going to explain 5 important points that one considers before choosing a Mutual Fund Advisor.
QUALIFICATIONS AND EXPERIENCE OF THE ADVISOR
In mutual funds, you invest your money, and most important you invest your money for your goals, thus making a mistake is not advisable. Before selecting a mutual fund adviser for your mutual fund assessment, check the advisor’s qualifications and experience. A professional degree like being a certified financial planner or a similar degree is of help.
The adviser that you select must have a good knowledge of different asset classes. He and his team must be aware of the factors like domestic and international markets that affect the asset class. He must also master the criteria, that he would analyze to pick up a suitable fund to meet your goals. He must know how to analyze your portfolio and reallocate it as per your goals if required.
PAST TRACK RECORD
There is no formal rating or ranking system for mutual fund distributors in India, so far, but analyzing the past performances and records of a mutual fund adviser is necessary before engaging with him. In such a situation, the best way is to ask around for referrals. You can also go through social media platforms and get knowledge about the quality of the products recommended by them in the past. That will give you some idea of his strengths. Do check, for how long he is working as a mutual fund adviser.
EASILY ACCESSIBLE
The most common problem that the investor's experience is the lack of being in touch with their mutual fund advisers, on a regular basis. They often complain that the advisor does not call back or respond quickly to his messages. Thus, while selecting your mutual fund adviser, get ensure that your mutual fund adviser is easily accessible. The advisor or his team should be able to answer your queries in a reasonable period of time. Your mutual fund adviser should be regular touch with via any means of communication, be it messages, call, email, or other.
OFFER COMPREHENSIVE SERVICES
Many investors are reluctant towards sharing their finance or investment related details with any stranger; thus, they look for advisers, who can confidentially handle all their investments. Also do always choose a mutual fund adviser that offers you the best suitable fund from different funds house and is not concentrated on certain funds.
HOW IS THE ADVISOR IS PAID HIS BENEFITS?
A good adviser dedicates himself completely and indulges himself in your work so that you could get the best returns from your investment, thus he should be paid well. Some adviser uses the distribution model while some could ask you a fee for their services depending on the time, they have to spend with you, the level of advice you need or any other personalized requirements.
Well, there is some online portable also, that perform the needful work like gathering data from you while planning a financial plan for you, that too for free, while some seasonal advisers, could charge you for the same.
For any kind of query, you can contact us at Shri Ashutosh Securities Pvt Ltd., we are here to help you in any way possible.
Happy Investing!
(Mutual Fund investments are subject to market risk Illustrations are for example only, there is no guarantee of returns. Past performance is not an indicator/guarantee to future returns).