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5 Signs You Are Not a Good Investment Advisor


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It’s definitely not easy being a financial advisor. People tend to expect a lot from you, at times, it can turn out to be a really gruesome job. People keep wondering what you are going to do with their money, and with so much pressure involved, it gets even more difficult when things do not turn out the way you have planned.

But are you really giving it your best shot? Are your clients really happy with your performance? Do you really go out of your way to help client make the most of their wealth? Looks like you’re not sure. Find out if you are a really a good investment advisor or whether you need to perform better.

Jack of all Trades, Master of none!

Do you promise your clients everything under the roof but fail to meet those promises? Then it’s time to alter your practices. You need to be focused; it isn’t necessary that you give them advice on everything from investment, financial planning, insurance, to tax advice. You cannot manage everything at once. Being a good advisor, you should ask them relevant questions and provide suggestions that best suit their interests.

Are You Not Forthright About the Returns?

If you are not really open about the returns you earned for your client, you will soon be shown the door. Your focus should always be on gaining good returns for your client with minimized risks. Most investors fall for classic investing mistakes and that’s when you need to picture the risk-adjusted returns, plan profitable investment strategies and communicate them to your client. Also, you need to draft a well planned investment strategy and find ways to balance it in case of a major market crash. Your client should trust you and be assured that you are backing up the strategies with proper market research.

Vested Interest

Do you keep pushing expensive products to your clients that aren’t beneficial to them in anyway, but for your own good? Whether you work as an independent broker dealer or for an organization, if you sell additional products to your consumers just to earn compensation from mutual fund companies, then you probably aren’t a good advisor. To avoid such involvements, you should aim at growing your clients’ assets further without being associated with selfish practices.


Are You Simply Reliant On Mutual Funds?

Do you focus your client’s wealth only on mutual funds and not other verticals, then probably its time you change your practices. That’s because mutual funds offer less transparency. For that reason, it is always better to invest in other investments like ETFs, index funds, and other low fee investments and not just mutual funds.

You Seem To Have Lost Interest

Is your relationship with your client a ‘one-way relationship’? Have you stopped been active on the client front? Are you ignoring some of your smaller clients or not paying attention to their needs? You’re your relationship with your client has been rocky from the very beginning? Then, you really need to change your conduct because it won’t be difficult for your clients’ to change their investment advisor sooner than later.

The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: Financial Advisors Markets Personal Finance


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