Your Finances, Your Choice: How to Find the Right Financial Guide

Have you ever felt lost when you think of your finances? Managing your finances can feel overwhelming. But in such times, it‘s good to remember that financial management is a journey and not something you achieve in a single day.

And here’s the good news: you don’t have to go through the entire journey alone. You can find a financial guide who offers support and puts you in control.

Different types of financial guides serve different needs. In this article, we’ll talk about the various types of financial guides, assessing whether you need one, along with tips on how to find the right one.

Types of Financial Guides
• Registered Investment Advisors (RIA) – An RIA are SEBI-registered financial advisors who offer personalised investment advice along with portfolio management services. An RIA needs to be registered with SEBI, and they must act within strict regulatory guidelines so that they act in the best interest of their clients. RIAs can charge a fixed fee per annum, or they can charge a percentage of the assets under advice. The maximum fee that RIAs can charge is capped by SEBI.
• Certified Financial Planners (CFP) – A CFP can provide complete planning and strategy for your entire financial journey. They provide holistic services which can include investment strategy, estate planning, tax planning, insurance, and retirement planning. A CFP can have a variety of pricing models, such as per consultation, per project, commission-based, or retainer-based.
• Mutual Fund Distributors (MFDs) – An MFD understands your investment goals and helps you invest in suitable mutual funds that match your needs. MFDs usually charge a percentage of the mutual fund portfolio that they are managing.

When to Seek Help?
You may want to seek financial guidance for a variety of circumstances such as:

• Life Milestones – Financial planning can help you meet various life milestones such as marriage, children’s education, retirement, or purchasing a house. The sooner you seek help reaching any of these financial goals, the higher the chances for you to develop a plan and execute it successfully. You can also seek help for multiple milestones at the same time.

• Financial Complexity – Finances can get significantly complicated quite quickly. For example, you may have a diverse portfolio of assets, which may include real estate, securities, businesses, and so on. Various assets may be under different names and may include various stakeholders. It is always advisable to seek professional help if your finances are complex to ensure that they’re properly managed.

• Seeking Clarity – Financial management is a lifelong journey, and it’s important to seek help when you’re unsure of what to do. For example, you may not be sure which investments would work for you, how to plan your taxes, how to ensure your estate is properly managed, and so on. You may seek financial guidance for specific questions that you may have within your financial journey.

How to Choose the Right Financial Advisor?

• Know Your Needs – Before choosing a financial advisor, it’s important to gain clarity on your needs. Different types of financial advisors can serve different needs.
You can start by asking yourself a few questions, such as “What are the roadblocks I’m facing in my finances?”, “Am I on track to meet my financial goals?”, and “Are my finances being managed the way they should be?”.
Knowing your needs will help you find the right type of financial advisor.

• Research Credentials – Check the credentials of your financial guide so that you can rest assured that they are qualified to provide the right advice. Another reason to check credentials is to ensure that they’re acting within regulatory guidelines.
For example, SEBI has strict regulations that RIAs must follow, such as acting in the interest of the client and disclosing any conflicts of interest.
Further, rather than simply checking their degree or license, it also helps to assess their experience. You may ask them if they’ve served clients that match your needs before.

• Understand Their Fees – There are various financial advisor fee structures. As mentioned earlier, some advisors may charge commission, others are fee-only financial advisors, and so on. There may also be a difference in how much they charge depending on their experience.

You can do a cost-benefit analysis to ascertain fees that are suitable for your needs. It’s best to speak to a few different service providers to understand the relative pricing in the market.

Wrapping Up
Whether to seek financial guidance depends on your personal needs and goals. Professional guidance can be empowering and can help you gain clarity and manage your finances better.

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.

Statutory Details: Axis Bank Limited is not liable or responsible for any loss or shortfall resulting from the operation of the scheme.

This article represents the views of Axis Asset Management Co. Ltd. and must not be taken as the basis for an investment decision. Neither Axis Mutual Fund, Axis Mutual Fund Trustee Limited nor Axis Asset Management Company Limited, its Directors or associates shall be liable for any damages including lost revenue or lost profits that may arise from the use of the information contained herein. No representation or warranty is made as to the accuracy, completeness or fairness of the information and opinions contained herein. The AMC reserves the right to make modifications and alterations to this statement as may be required from time to time.

Views and opinions contained herein are for information purposes only and should not be construed as investment advice/ recommendation to any party or solicitation to buy, sale or hold any security or to adopt any investment strategy. It does not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. Axis MF/AMC is not guaranteeing/assuring any returns on investments. The recipient should exercise due caution and/ or seek professional advice before making any decision or entering into any financial obligation based on information, statement or opinion which is expressed herein.

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https://www.nism.ac.in/how-to-become-a-sebi-registered-investment-advisor-step-by-step-guide/

https://www.nism.ac.in/how-to-become-a-sebi-registered-investment-advisor-step-by-step-guide/

https://www.amfiindia.com/Themes/Theme1/downloads/FAQsonRoleofMFDsAdvts.pdf

https://www.livemint.com/money/personal-finance/sebi-warns-unregistered-investment-adviser-here-s-why-investors-should-seek-advice-only-from-rias-an-explainer-11746793749962.html