Market Overview

What Qualities Do Investors Look For In A Financial Advisor?


Most investors tend to question the credibility of their financial advisors at some point or the other.  Many prefer to change their financial advisors since they have no reason to continue with them anymore. While determining whether their financial advisor is worth the money being paid, they look for a number of criteria before finalizing upon one.

  • Knowledge - Hiring a financial advisor can be tricky enough. While deciding upon a financial advisor, investors look for advisors with exceptional knowledge and skills in this field. So, if you wish to be immensely knowledgeable, you’ll have to keep pace with all the happenings in the industry. You ought to familiarize yourself with new regulations and offerings in the market.
  • Education - The next thing clients look for is the educational qualification. Investors expect their financial advisors to be a either a Certified Financial Planner or a Chartered Financial Analyst. That’s because they want to be sure that their hard earned wealth is in safe hands and that their assessment and plans aren’t vague.
  • Experience - Clients seek experienced financial advisors who know how to handle their money well. You need to play it safe. It is always better to have considerable experience in a similar field with some firm before you start working independently. One who’s been around for while is in a better position to predict market conditions.
  • Relationship - What kind of relationship you maintain with your client is also of prime importance to them. Excellent rapport with your clients will act as your greatest strengths in the long run. The best broker dealers and advisors know how building solid relationships with their clients, with better communication and interaction, can help build a formidable customer base.
  • Association - Another aspect which is important for people to know is whether you as an advisor work for a company or for yourself. They want to know whether you work independently or are associated with some financial company.
  • Communication - If you want to be called a successful independent financial advisor, you have to have excellent communication and networking skills, plus you need to be good in maintaining strong professional relationships with your clients. Higher the client base, higher will be your earnings and rewards.
  • Management - For investors, it is important for their advisors to have excellent know-how about mutual funds investments. Since funds are complex matters, they require good management skills. Clients seek someone who is either an investment specialist or an advisor who can guide them in the right direction. One effective way to be an investment specialist is to stay updated on the new methods of investing, metrics, and top financial products.
  • Specialist - Most of them look for some specialties you have. Some of the clients look for advisors who are specialized in estate planning, while others are good at planning retirement.

These were just a few pointers that give you a fair idea about what an investor looks for in a financial advisor. But the bottom line is, to be a successful financial advisor, one must have all the expertise, resources, knowledge, and tools to provide guidance to their clients and manage their wealth.

The following 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 Personal Finance


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