Thursday, December 10, 2020

This is Why a Financial Advisor is Necessary




Whether an individual or company, every entity looks to secure the future, which can only be made possible through financial planning. Determining how the entity will achieve its strategic objectives and goals is what financial planning is all about. 

For this purpose, finance professionals come up with financial plans, which show the equipment, resources, materials, and activities necessary for the fulfillment of objectives.

It is the duty of a Financial Advisor to provide financial advice or guidance to customers about various financial services. Areas that require help from a Financial Advisory firm in Mumbai include the following:

  • Estate planning
  • Tax planning
  • Investment management
  • Portfolio management

Not all advisors work on an individual basis; there are some aligned to top financial companies as well. However, being in a position of knowledge, it is important for professionals to be responsible and provide information in an unbiased manner.

Managing busy schedules


Work and personal schedules have become very busy these days, with many people working from home and trying to manage their careers, kids, and marriages at the same time. Since every person already has a number of worries to take care of, it makes sense for a professional to handle the financial bit.




Speaking of clients, the investment portfolio of each client is different, with the primary difference being in terms of risk appetite, which is the ability to take risks. While the client will decide the amount of money to be invested, the Financial Advisor can decide how to invest them. 

A large number of financial instruments, including mutual funds, gold, shares, ETFs, bonds, and others are available. The best professionals to do this job are available in Mumbai, the financial capital of India. In other words, the best financial planning services will be available here.

Team of financial professionals


Financial Advisors usually work in teams where they look to coordinate with other financial professionals as well. The team contains people like investment bankers, Chartered Accountants, and Chartered Financial Analysts. Also, in such teams, the client does not have to pay a huge retainer fee. No commission is charged from the company.

The role of a Financial Advisor, especially for a high Net Worth individual, can be summarized through the following points:

  1. Not just investment- Financial Advisors toil hard to rebalance investments, and also help with estate planning and tax planning. They can also develop long-term care plans for their clients.
  2. Professionals need help themselves- Other financial professionals who plan the finances of others are unlikely to be able to do the same for themselves, which is why they must get help.
  3. Reduced stress- A client who leaves the financial worries to the advisor would have to deal with lesser stress in life. It’s this assurance that really matters most for high worth individuals.
  4. Exercising control over emotions- It is not a good idea to make financial decisions with an emotional bent of mind. The Financial Advisor will prevent emotions from clouding one’s judgment.
  5. Clients remain on track with their goals- An advisor also tells his or her client about how to modify investment portfolios with age and risk appetite


Implementation of financial plans is made possible through monitoring by the experts. Financial Advisors make sure that they monitor the financial actions on a weekly basis and guide clients accordingly. Of course, the plan will not work if clients do not follow the given advice.

Principles of wealth management


Financial planning may appear to be the same as wealth management at the outset, but it isn’t. There is a fundamental difference between the two- while one looks to amass wealth in the case of financial planning, one already has wealth and looks to consolidate it through wealth management.

One does not have to look at wealth management while accumulating financial wealth. However, it may be required at later stages after a client has accumulated significant assets. Also, wealth management is meant for high net worth individuals. The role of a wealth manager is to preserve the wealth of a rich businessman or company and then look for opportunities to make more.

Wealth management mistakes by physicians

A physician often faces unique situations with respect to financial planning and wealth management. The earning potential of a physician is tremendous, and it is important for them to make the most. Unfortunately, the truth is far from that. Here’s a look at their common mistakes:

  1. Delays in savings- One may be faced with student loans and already be in debt before commencing practice. For this, individuals must start saving as soon as possible.
  2. DIY mentality- High earners can afford the mistake to make mistakes while investing, but not everyone
  3. Spending too much- Society has many expectations in terms of homes, cars, and more. A lot of physicians get trapped in the same. 




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