Things to Keep In Mind While Hiring a Mutual Fund Advisory Service

Posted by Avinash Mittal on April 17th, 2019

Mutual funds as an asset are surging to new highs. Thus, many new investors are entering the industry and investing in mutual funds to meet their long-term goals. Since it is quite difficult to track every investment; most of the people take help from mutual fund advisors in Delhi.

Before you hire a mutual fund advisory service, here are the things that you should keep in mind:

Qualifications and Experience

Investing in mutual funds to meet your long term goals is something crucial; going wrong on this journey can be costly. Before you hire an advisor, it is important to check their qualification and experience. The advisor must have great knowledge of investing in a different asset class such as equity, fixed income, gold, etc. they should be in a position to decipher and understand how these assets will be affected by various events. Thus, they should be able to identify and advice products that’ll fulfill your goals.

Past Track Record

It is always sensible to look for references before engaging with an advisor. However, there’s no formal rating or ranking system for mutual fund advisors in India, so far. Therefore, the best way is to look for referrals. Use social media websites and search for mutual fund advisors online to understand the products they’ve recommended in the past. This will give you an idea of their strengths. Also, look for how long they have been in the business.

Easily Accessible

Since there is no set limit on the number of clients an advisor can engage with, people often complain that the advisor doesn’t call back or respond quickly to their messages. Hence, it’s very important to entrust your money to the advisor who is accessible. The advisor or their team should be able to answer queries in a reasonable period of time, and they should be available by whatever means of communication you choose.

Compensation

A good advisor needs to be well compensated. Some of the advisors use the distribution model, while others may ask for a fee for their services depending upon the time they’ve spent with you or the level of the advice you need, etc.

Hence, considering these points will surely help you to find the best mutual fund advisor in Delhi.