If you are someone who wants to achieve financial stability and independence, then hiring a financial advisor is an excellent first step. However, with so many individuals claiming to be financial advisors in India, it can be challenging to choose the right one.
Fortunately, the Securities Exchange Board of India (SEBI) has taken steps to regulate financial advisors’ activities to protect the interests of investors who have been misled by unqualified advisors. In 2013, SEBI introduced the SEBI Investment Adviser regulations, which mandate that any individual or entity wishing to provide investment advisory services must register with SEBI.
If you are looking for the best financial advisor in India, the first thing you should do is check if they are SEBI registered. You can find a comprehensive list of SEBI Registered Investment Advisers (RIA) on the SEBI website. It is crucial to ensure that you deal with an entity that is registered with SEBI to ensure they meet SEBI’s stringent requirements.
Another important consideration when choosing the best financial advisor in India is their qualifications. One of the most recognized certifications worldwide is the Certified Financial Planner (CFP) certification. This certification is awarded to individuals who pass the Financial Planning Standard Board’s stringent norms related to personal finance. You can search for the best financial advisor in India on the FPSB directory.
Once you have identified a SEBI registered financial advisor who holds a CFP certification, the next step is to determine their fee structure. There are three types of financial advisors: fee-only financial advisors, fee-based financial advisors, and distributors of financial instruments.
Fee-only financial advisors are the most transparent and unbiased financial advisors, as they get directly compensated by the investor. They charge for the financial plan and advisory services provided to the investor and do not earn any commissions or brokerage from the products or strategies they recommend. They are bound by fiduciary responsibility and mandated by SEBI to keep the investors’ best interests in mind.
On the other hand, fee-based financial advisors charge the investor for planning and may receive commissions from products or strategies recommended in the financial plan. This is not approved by SEBI, as the Investment Advisor regulations state that the best financial advisor in India cannot charge a planning fee and sell commission instruments to the same client.
Distributors of financial instruments are involved in selling various investment instruments and generate income from the commission or brokerage they receive from selling those investments. They are not mandated to ensure fiduciary responsibility and can naturally lead to huge conflicts of interest.
It is important to note that the best financial advisor in India follows a six-step financial planning process to provide better value and help their clients achieve their financial goals. This process includes establishing and defining the relationship with the client, collecting information from the client, assessing the client’s financial status, explaining to the client about financial planning, implementing the client’s financial planning recommendations, and reviewing the client’s situation.
At Jama Wealth, we are a SEBI registered and the best financial advisor in Hyderabad, India can provide financial planning services to individuals and help them manage their wealth and lead a happy life. Our comprehensive financial planning services in Hyderabad, India cover all aspects of personal finance, such as budgeting, risk mitigation, investment management, retirement planning, financial goal planning, wealth management services, financial advisory services and etc.
We believe that most people find it challenging to dedicate time to gaining the required knowledge and skills to actively plan and manage certain financial aspects of their lives. Therefore, our qualified, experienced, and financial planning advisors can be of help. We work with clients who stay in Bangalore, Mumbai, Chennai, Kolkata, Delhi, or other parts of India or the world, and most of our clients prefer online meetings through Zoom meetings, Google Meet, and other online tools.
In conclusion, choosing the best financial advisor in India requires careful consideration of several factors, such as extensive research and due diligence. One must ensure that the advisor is a SEBI-registered Investment Advisor, a Certified financial planner, and a fee-only financial planner. By choosing the right financial advisor, individuals can improve their financial well-being and achieve their financial goals. Jama Wealth is one such firm that can provide quality financial planning services to individuals in India.