An investment advisor is an expert who advises the clients on managing their investment portfolio by investing in securities such as stocks, bonds or mutual funds. Some people confuse investment advisors with financial planners. Financial planners advise people on all aspects of their finances such as savings, investments, insurance, taxes, retirement and estate planning. They help them in devising financial strategies or plans to realize their financial objectives. Investment advisors, as the name suggests, advise the investors about the various investment options. What this means is that while all financial planners can be investment advisors, not all investment advisors can be financial planners.

You can choose between a financial planner or investment advisor based on your requirements. If you are interested in investing your money, the best person to approach would be an investment advisor.

Tips for choosing an investment advisor

You should seek the answers to the following questions from the investment advisor.

• The professional qualification of the investment advisor
• Relevant experience in the field
• Recent employment history
• Whether he holds a valid license
• The products and services he is offering
• If he has ever been censured by any government agency for any lapses
• If he has even been sued by a client for unsatisfactory work or improper conduct

There are many investment companies offering their services online. While it makes good sense to go through the website to study the information given, it is always better to meet the person face-to-face before coming to a decision.

You should always enquire about the fees that would be charged for the services rendered. Most investment advisors charge their fees in one or a combination of the following modes of payment.

• A percentage of the value of the assets that they manage for you
• An hourly fee for the spent working for you
• A flat fee
• A commission on the securities that they sell

Each mode of payment has its pros and cons. You may cross question the investment advisor about his charges and then decide which form of payment works best for you.

 

The best course is to go for comparative shopping for an investment management firm on the Internet. Browse through the websites and make a list of the qualifications of the experts, services provided and fees charged by the various companies. You can then do a comparative study and decide on the best offer you are getting.