Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Standard view
Full view
of .
Look up keyword
Like this
0 of .
Results for:
No results containing your search query
P. 1
How to Choose Your Personal Financial Planner 1

How to Choose Your Personal Financial Planner 1

Ratings: (0)|Views: 63|Likes:
Published by kirang gandhi
How to Choose Your Personal Financial Planner ?????????
Points to be considered while to choose a personal financial Planner.

It is Important to all while Investing and Insuring a single money in the market.
How to Choose Your Personal Financial Planner ?????????
Points to be considered while to choose a personal financial Planner.

It is Important to all while Investing and Insuring a single money in the market.

More info:

Published by: kirang gandhi on Sep 11, 2009
Copyright:Attribution Non-commercial


Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less





How to choose your personal Financial Planner?????????
As we understand the value of money and explore ways of creating and preserving wealth, it isof pertinent importance that we appreciate the strong and positive correlation between theamount of wealth we are able to amass and the financial planner/advisor we choose.Investment and Management of your finances can be done in two ways. You can either manageyour finances on your own or else can get professional help to manage your affairs.Investment of one’s funds is a serious business as it can make or break one’s financial life. Justlike when you are diagnosed with a medical problem, you start taking references and evaluatingthe reputation of various qualified doctors and hospitals. Similarly, at the time of makinginvestment decision, you should make a prudent decision while selecting your personalfinancial planner.Financial planning forms the core of rendering investment Advice. How can one plan his/herinvestments without knowing his/her financial needs and goals? Investing without financialplan is like roaming about the streets of a war torn foreign country without a road map or aguide. It is fraught with dangers which can be potentially fatal. One can end up investing largechunks of money but might not be able to meet his/her financial needs and goals in the futureif he/she has not followed the financial planning route.Imaging a person who has invested a considerable sum of money in equity markets though hewill need the same in the next 6 months. Equities by nature are long term investments whichmight even show negative returns in the short term .After 6 months, if need arises the personmight have to sell his investments at a loss to meet his obligation. Had he been to qualifiedfinancial planner to ask for advice, he would have been advised to invest his money in highlyliquid money market or short term debt funds which would have given him low but positive andstable return. The losses could have been entirely avoided.
Thus it is very important to have a personal financial planner who understand your needs,financial goals, existing financial position and income streams. Only then can one hope of creating ,preserving and multiplying one’s wealth over the long term.
The key of money management is time and expertise. The more you are prepared to invest inmanaging your financial affairs, the grater is the return on that investment. It therefore followsthat the earlier you start managing your money, the more effective the process becomes.
Times certainly have changed. Not only has there been an advent of plethora of opportunitiesfor the single investor, but it also has made him/her spoilt for choice. Robust macro – economicfundamentals and the attendant spurt in investing avenues are attracting a host of investors.The investors are a host much more knowledgeable today and are very much willing to go thatextra mile.
While inveting ,one should always keep the following points in mind.
One should always divide the overall investment portfolio into two parts.Long Term and Short term. The Long- term investments should be in accordance to yourfinancial goals and your short term investments should be actively managed andregularly re-balanced.2)
One should always take a systematic approach while investing to benefit from principleof diversification and compounding.3)
One should always diversify one’s portfolio and never concentrate all the investments inone asset class only.4)
One should invest according to one’s financial goals and not in an ad hoc manner.If you choose to get professional help, there two ways of going about it.You can choose an individual financial planner.
There are certain questions that one needs to keep inmind while making the choice-
Do you want to go a bank, which resembles a large establishment, where you mightget the confidence of getting associated with an institution, but would have tocompromise on getting personalized attention.
You can consider an Agent / company Advisor /Relationship Manger, but you are notsure ,whether that Agent/Advisor/Relationship Manger would remain in thatservice or not .Because he/she is dealing with that particular companies Investmentoption only. After he/she leaves problems might be occurs if he/she switches thatparticular company to another company.
You may also approach a specialized Professional financial Planner which is amixture of an all Institution ,Where you get a personalized professional attention for
Long Long term where you receive personalized attention along with the confidenceof dealing with an allAll kind of institiuon option. It remains in business only if they are able to keep theirinvestors happy and earn their revenue or fee from the advice that they provide.With the liberation of the economy, there has been an emergence of numerousfinancial products, but one has to take due care and apply a lot of prudence beforeselecting a financial planner .The following points should be considered by investorswhile choosing a financial Planner for them selves.1)
Check the credentials of the Planner:
When we get the references of afinancial planner from our friends / Relatives, We should always check whetherthey are suitable to our requirements or not. One size doesn’t fit all. Similarly,one planner may not be suitable for every person.2)
Check the references:
We should always check with the clients that theplanner had dealt in the past, and verify how their experience had been. Werethey been able to meet their goals, how authentic had been the advice that hasbeen given to them? How was the after Sales Service?3)
Check the history or professional experience:
Today there are thousands of so-called “experts” claiming to be specialists in the financial advisory business. Weshould always check whether the financial planner is well qualified or not, like AMFI,IRDA etc..We should always check the relevant experience of the planner.4)
Investors should check the availability of a multi-product basket with
the advisor :
The Financial Planner should be in a position to provide multiplesolutions for the need of the investors. With the multi product basket, an investorcan choose from a plethora of investments solutions available and make the bestchoice according to his/her needs.5)
Most Importantly, the financial Planner should provide strong
backed advice. The advisor should provide recommendation in an ad-hoc(Advt. ) manner rather should provide services based on painstakingly conductedanalysis and through research.

You're Reading a Free Preview

/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->