We are in the midst of a pandemic and there is no doubt about it. While we are all concentrating on our health and mental wellbeing, we should not forget that they come with a cost. And the ability to pay for the same is equally important. Yes, it is equally important to manage your money.

In today’s world, there are no excuses left to avoid working with a professional when it comes to your finances. Consulting a professional financial advisor has become extremely affordable, and more widely accessible in the process. But finding the right financial advisor can be difficult, and sometimes a bad experience can dissuade you further. To make this process less cumbersome and find the best financial advisor for your requirements, here’s what you need to know:

• Look for a SEBI registered professional

In India, especially, finding a financial advisor who you can trust can be difficult. This is why a preliminary level of screening can help you make your decision. You should opt for a financial advisor that has a Securities and Exchange Board of India (SEBI) registration. 

Distributors / Agents: They earn a commission on the products they sell. In this sense, mutual fund houses, insurance companies, etc. pay a commission to agents for endorsing their products to clients. This could cause a conflict of interest. 

Registered Investment Advisor (RIA): charge you a fee for the services they render; aiding the development of your financial plan and advising you on financial decisions. They offer products in the direct mode (no commission option) wherever direct options are available. In most cases, it is better to work with RIAs because it reduces the possibility of a conflict of interests arising over the products you finally decide to invest in.

• Identify the kind of advisor you need

The kind of financial advisor you need will depend on your specific requirements. Professionals usually have different areas of specialization ranging from investment management to transitions planning, retirement planning, cross-border financial planning etc. By comparing your needs with the services offered, you will be able to find the right kind of advisor. 

On the other hand, if you are just making your way into the world of finance, you may need to find someone who can help you build your portfolio. In this case, consulting a certified financial planner can be beneficial. A good financial planner, in the process of identifying the best options for you, will:

1. Help you arrive at a clear articulation of your financial goals.
2. Aid in identifying risks specific to you. They will also help in identifying the need along with quantum of insurance.
3. Conduct a psychometric test, to measure your willingness to take risks and to understand your risk profile.
4. Advice you on asset allocation decisions and selection of products, based on the above factors, as well as capital market expectations.
5. Finally chart out a review cycle to evaluate your financial condition over time, and make changes accordingly. 

• Finding good professional advice

When it comes to actually finding a professional financial advisor, there are several possible routes. You can ask for recommendations from friends or simply conduct an online search for reputable firms and independent advisors. While the technological advancements in today’s world have eliminated the need for face-to-face interactions, when it comes to your finances, this facet can go a long way in building a relationship of trust. Here is my detailed answer to finding a good advisor for yourself: https://www.quora.com/What-makes-a-good-financial-adviser-Where-can-I-find-them/answer/Sneha-Jaggar-1

When it comes to achieving your goals, the decision you have made to work with a professional financial advisor is definitely a move in the right direction. Now, with the help of these tips, you should be able to find the best financial advisor for your investor personality. Happy Investing.