The mutual fund industry has added more than 8,000 new distributors this calendar year. Many of these new distributors, as well as some from the existing community, may approach you to apply for mutual fund investments. It would make sense to choose an appropriate financial advisor who can help you manage your investments:
Dealer ratings
Check how well qualified the dealer is in terms of education and what kind of knowledge and experience they have. The mutual fund advisor must have a good understanding of the different asset classes, such as stocks, fixed income, and gold.
He and his team should be in a position to figure out and understand how these asset classes would be affected by various national and international events. The assessor must be able to identify products that will meet your life stage requirements as they are needed.
Is your dealer easily accessible?
It is important that a dealer you trust with your money is accessible. The advisor or advisor's team must be able to respond to your queries within a reasonable amount of time and must be accessible by any means of communication you choose, including phone, email and meetings. Time is of the essence in the financial world and he should be able to execute his investments quickly.
Can your advisor offer comprehensive services?
Most investors don't want to discuss their finances and investments with too many people over and over again, as these are confidential matters. They want an advisor who can handle their investments with confidentiality. Choose an advisor who is unbiased and can offer you mutual fund products from all fund houses.
Check past history
It is important to know the history of the person you entrust your money to. What field were you working in, what knowledge does the advisor possess. There is no formal rating or classification system or
best online platform for mf distributor in India.
Therefore, in this scenario, the best way is to ask for references. Use social networking websites to find out if someone has recommended the consultant or his firm. That will give you an idea of their strengths. Look for references online, ask your friends or family for references, how long the consultant has been in business and how they operate.
How is the advisor compensated?
A good advisor needs to be well compensated. Ask your advisor if he uses a distribution model or
mutual fund platform for distributors, in which he receives a commission from the fund house for each investment he makes. Alternatively, some advisers charge you a fee for the service, depending on the time they have to spend with you or your personalized requirements.
There are many online portals that help you make a financial plan by collecting your data and it might be free while there are experienced financial planners that might charge a fee for the same. A comprehensive financial plan takes effort to accomplish and takes into account your ability to take risks, your future needs, and your life goals.
How to Choose a Mutual Fund Distributor
