Questions you should ask your financial planner!
- How much experience do you have? Financial planning involves understanding of investing behaviour, risk profile etc and the more the experience of the Financial Planner, the better. Hence experience should be a major driver behind your decision.
- What are your Qualifications? A suitable qualification such as Certified Financial Planner and SEBI Registered Investment Adviser are desirable which indicates the Planner is serious of his/her profession.
- Do you only plan or also sell?The planners who sell products may not provide unbiased advice.You should prefer a planner who is independent of product sales but does research on various products.
- How do you conduct our portfolio reviews?The portfolio must be reviewed quarterly/half yearly/annually.You should prefer a planner who keeps in touch with you regularly.
- How much do you charge?The Financial Planner should be value for money.It is always preferable to go for right advice with fair compensation rather than low fees with biased recommendations.The planners may charge an upfront fee and/or a percentage of your assets periodically or both.In case the planner also sells products,you should insist for disclosure on the commission earned by him/her