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Five reasons why you should have your own wealth advisor

A lot of us are hesitant when it comes to trusting a third party with their investments. As financial savvy as you might be, there are atleast five good reasons to think twice before declining the help of a professional to manage your money for you at all times, even when you sleep.


1. You might not have awareness of all products in the market: There are more than 40 mutual fund houses currently in the Indian market, each offering atleast 5-6 different types of funds in different categories of assets, taking the total options available in the market to a mind boggling number. Do you have the time or expertise to understand the nitty gritties of the functioning of all these fund houses, the difference between funds on offer, or how one scores above the other? And we are talking about just one financial instrument. There are a lot more type of such instruments through which you can be investing your surplus cash or providing for the future. Why not leave these decisions to the expert whose job it is develop a scientific way of arriving at the best avenues of investment for you.

2. You might not know which product best meets your purpose: Different financial goals in life require you to have a mix of various financial instruments. For example, if you are nearing retirement and still have a house to buy on your list, the wealth advisor will keep your risk profile as low before advising you on the best way to meet your dream of buying a house. If you are still 25 and have recently started earning money, he will adjust for an expected rise in income over the years and you will have a slightly elevated risk level than the person retiring. Which products will meet these different needs is best judged by the person who knows you well and can gauge how much risk is not going to spoil your night’s sleep.

3. You might not have enough time to do research about financial markets: as important as it is to get the financial instrument into which you want to invest your money correct, it is also essential, perhaps even more so, to get timing of the entry into that instrument correct. You might not be having the time or the resource to both track the market and execute the decision of entry / exit into a particular instrument. The wealth advisor will look after not only meeting your goals but also planning the correct timing of the markets for you. He will also be switching between products, careful that he keeps your risk appetite in mind, and arranges for maximum wealth creation for you.

4. You might not understand the risk of the product: To cite an example, large cap mutual funds are supposed to be the least risky of mutual funds available if you wish to take exposure to the equity markets. But reading fine print of the fund would tell how that there is a minimum percentage of exposure the fund manager would have to keep to stocks at any given time. This can vary from 80-90%. This even if the fund manager has a view that the equity markets will be giving a good buying opportunity in the next month, he is not permitted to sell the stocks and liquidate his position. If he is unable to average out his position during a market dip, the fund would perform worse than its peers, landing you on losing ground. Thus if you don’t understand the risk of any product well, you might not be in a situation to maximize the gains on your portfolio. In a situation like this, taking advice of your financial advisor would help you participate in the markets at opportune moments.

5. You might end up being in love with a portfolio: As the saying in traders’ circle goes, you cannot afford to fall in love with a stock. The same applies to all financial instruments. But if you do not get the time to keep tracking the performance of old and new instruments on offer and seeing which funds or bonds are emerging as better performers than the ones already in your portfolio, you might be missing out on good opportunities. Your wealth advisor has a professional angel to your portfolio and will be able to take this call on your behalf and make a switch as and when required. Contact us to schedule an appointment and know how best we can help you plan for your future.

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