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How Financial Guardians Can Boost Investors' Confidence - Outside View by PersonalFN

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How Financial Guardians Can Boost Investors' Confidence
Mar 16, 2017

Trends have changed.

Today, when you walk in to a branded clothing store, it is not a 'Sales Executive', but a 'Fashion Consultant' who assists you. Their job is to help you make the best choice of garments. They make you feel good showering you with compliments, but at the end, the objective is sales of course.

In the investment advisory space too, things have changed over the years -and sincere thanks to SEBI for regulatory changes enforced in the interest of investors. Many mutual fund distributors have turned into investment advisors or financial planners.

Similarly, at banks there is far more sophistication with the way third party financial products (viz. mutual funds, insurance, etc.) are offered. Yet, when you deal with relationship managers or wealth managers at banks, you ought to be careful, and assess if the financial product(s) being offered suit your risk profile, investment horizon, investment objective, and financial goals.

You have to be a responsible investor, while these new breed of professionals supposedly pervade a sense of trust. Don't be smitten by the glib talk that can do more harm than good. Unfortunately, not all may suggest products in your best interest. There could be a conflict of interest. Commissions earned from financial products may be their primary focus.

In the financial world, there are many certifications and compliance rules set by regulators and industry bodies. Despite this, many financial advisors have resorted to dubious practices while advising on personal finance.

The trust of investors is breached repeatedly - not to mention the financial loss and emotional duress that has come along, leaving a sense of betrayal amongst investors.

Certain financial advisors have lured their clients with false promises. They didn't care for the dreams, financial goals, and the objective of wealth creation of the people. You need to clearly avoid such advisors.

Genuine financial advice is far different from what is currently being "sold" in the market. You need to find for yourself a 'Certified Financial Guardian' (CFG) who stands as a symbol of Trust and Respect.

Trust is the foundation bed of any relationship -and it needs to be earned by doing things with integrity and a prudent, unbiased approach. If an investment advisor can do that, investors' confidence is boosted.

However, with the scores of advisors all around, it becomes an uphill task to pick the best financial planner or best investment advisor. But, not anymore...

PersonalFN can help you find Certified Financial Guardians, who are committed to serve investors in the interest of their long-term financial wellbeing - serving their clients with ethics and integrity; which effectively helps in building a long-lasting, trustworthy 'investor-guardian' relationship.

Here is how a financial guardian can boost your confidence as an investor...

Transparent and Ethical: A CFG is transparent in all his dealings. If there is a conflict of interest, he will make you aware of it, unlike most other investment advisors. He will disclose all commissions earned when recommending any investment avenue to you. Ethics is the first priority. She/he will adopt the utmost care and diligence while dealing with your finances, giving you the trust and confidence that your financial goals can be achieved.

Your interest first: A CFG will keep your interest first. "Food for one can be poison for another". Thus, before rendering any advice, a CFG will analyse your needs, various subjective factors such as: risk profile, age, financial goals, income, and expenses, asset & liabilities, amongst a host of others. Moreover, the recommendations would be backed by thorough research and analysis. And after a portfolio is built, close monitoring would be done at regular intervals. This would prove useful, during turbulent times in the journey of wealth creation. Also, he would assist you with additional purchase, redemption requests, switch, change in bank mandate, updating your KYC, etc. which could be cumbersome for you. So, in effect a CFG will handhold you.

Explain the rationale behind the advice: Any investment recommendation is substantiated with proper facts, figures and reasoning. This ensures that the advice rendered is congruent to the need-based analysis, which a CFG carries out, that is truly in your benefit. So, you, as an investor can be rest assured that the portfolio is not constructed based on ad-hoc recommendations, which can endanger your investment portfolio, your financial wellbeing.

Gives updated and accurate information: A CFG is in-the-know on any changes in policy or Government regulations that have impact on your personal finance such as changes in tax laws, mutual fund regulations, and so on. Any such change is promptly communicated to you along with necessary adjustments to your portfolio. A portfolio review on performance per se and a corrective course, if needed is taken. Moreover, a CFG would educate you to help you be an empowered investor. This proactive approach augurs well for you, as an investor and you're not misled.

After sales support: Entering into an investment is just the starting point; you also need prudent and reliable after-sales support from an investment / financial advisor. A CFG would provide all the after sales support, be it: resolution of your queries, counselling, support transactions, etc., truly a financial guardian standing by your side. In addition, to improve her/his service, she/he will reach out to you with a feedback form to see what she/he can do to ensure a delightful experience for you, the investor.

All these virtues of a good CFG are intended to serve you better and develop a healthy rapport. Do not forget, every investor needs a guardian today, so make sure you hire your Certified Financial Guardian.

If you are an investment advisor reading this post and interested in achieving the status of a 'Certified Financial Guardian' and working towards giving your clients honest, professional, and competent advice; take up the CFG certification today!

PersonalFN is a Mumbai based personal finance firm offering Financial Planning and Mutual Fund Research services.


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