Key Factors To Note Before You Choose Your Financial Planner


In today’s world where there are various financial planners available in the market, the hunt for a “good, professional & reliable financial planner” Key Factors To Note Before You Choose Your Financial Plannerbecomes difficult. An ideal financial planner is the one who considers his client’s interests as the primary concern than his own interests. Therefore, in this article we present to you the key factors to note before you choose your financial planner.

Ensuring all the necessary certifications of the financial planner

As per Investment Adviser Regulations of 2013, a person who takes fees for investment advice must be registered under SEBI. You must also ensure other certifications like CFP which is known as Certified Financial Planner. These measures ensure the credibility of the financial planner which is very important.

Awareness of the kinds of services been offered

It’s important to be aware of the types of services the financial planner offers such as estate planning; target based financial planning & mutual fund distribution. A financial planner gets a commission on the product you choose with his help. Therefore, the financial planner may persuade you to choose a product just to earn commission. Hence, you should be careful and evaluate the product for yourself as per your requirements. Therefore, it’s important that the financial planner reveals to you the commission he will earn.

Financial planner’s fees and research criteria

Average charge for a target based financial plan recommended by a financial planner can be from Rs.16,000 to Rs. 26,000. The financial planner may charge extra fees for services such as estate planning. You should ensure for the regularity in fees structure of the financial planner which does not differ from a third party. You must ensure that the fee covers the services of the financial planner for the entire year before you enter into a contract. You must ensure about the kind of research methodologies the financial planner uses to gain information about the insurance products he recommends to you. This is extremely important and reveals the financial planner’s skills and expertise in terms of selecting the best option for you as per your requirements and risk factors.

Interaction between the client and the financial planner

The interaction between the client and the financial planner decides the flow and reliability of the financial plan. This is especially true during the early process of data collection & analysis of the financial situation due to the maximum interaction during this period. Prior to the plan presentation & implementation, the planner must review your portfolio against your goals regularly. Therefore, it’s important that you ensure the regularity of this review process as it’s the most important aspect of financial planning process. In case you are not aware about a “financial plan” then you must immediately ask your financial planner to give you a sample financial plan. This will help you to get an idea about the look of a normal financial plan & the various aspects of a financial plan.

SEBI is the governing body which resides over all the investment advisers who strictly have to abide by the norms of SEBI.


Please enter your comment!
Please enter your name here