Financial management is an important skill that has become crucial in this modern time. Possessing this skill can be extremely beneficial and can make you perfect for the role of a financial advisor. We need to be aware of what a financial advisor does in order to understand their role. Financial advisors are qualified professionals who offer advice and guidance regarding specific client funds. Your financial advisor provides you with steps that were specifically devised and planned for you. A good financial counsellor enables you to increase your wealth, reduce your venture costs, and eliminate debt. A financial advisor offers unbiased advice that can assist you in investing in the right financial instruments to help you reach your long-term objectives.
Before learning how to become an independent financial advisor understanding the role of a financial advisor can clear a few of your doubts to understand if it is the right choice for you or not.
Starting with a direction for your financial goal, a stock advisor is aware of your immediate needs, and long term goals, and also takes into account your risk-taking capabilities. Your stock advisor can create a strategy in light of this to help you achieve your goal with greater returns.
Equity and mutual funds are two important instruments that are significantly used while investing in the stock market. Choosing between them and allocating a specific portion can be difficult. As an investment advisor, you must determine whether it is worth investing in a particular stock. As a financial investment advisor, your job is to simplify things for clients, nevertheless, and make wise decisions for them as well. You can advise you on choosing the appropriate investment based on multiple factors, like market trends, government policies, geopolitics, client goals, risk-taking capabilities, etc.
Financial Portfolio Creation
Lack of awareness and time poor management can make it challenging to create savings and investment portfolios in any form. You can rely on a financial advisor to help you create your financial portfolio. Undoubtedly, they can help you build a diversified portfolio that delivers you rewards and lowers your risk of losing money on your investment. They also check and monitor your portfolio as frequently as they can so that you can achieve your financial goals
Registration as Financial Investment Advisor
There are many requirements that must be met to become a financial investment advisor
At least one of the below education qualifications must be met
- A post-graduate degree or post-graduate diploma ( minimum two-year duration) in finance, accountancy, business management, commerce, economics, capital market, banking, insurance, or actuarial science from a university or an institution recognized by the Central Government or any State Government or a recognized foreign university or institution or association
- A post-graduate degree or post-graduate diploma (which shall be of a minimum of two years in duration) in finance, accountancy, business management, commerce, economics, capital market, banking, insurance, or actuarial science from a university or an institution recognized by the Central Government or any State Government or a recognized foreign university or institution or association
- A CFA Charter from the CFA Institute.
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Here are the documents you need to become a financial advisor
- Proof of identity like via a government-issued ID
- Address Proof
- Education certificates
- CIBIL score
- Networth certificate
- Past 3 years Income Tax Returns
There are multiple fees associated with being a financial advisor. Based on if you apply independently or through someone you’d have to pay application fees. Apart from that, once the application is approved you’d also have to shell out registration charges. These charges are fixed by SEBI based on your application type.
An easy way to become a registered SEBI financial investment advisor would be to get associated with a stockbroker or investment firm and they will assist you in the whole process as well as guarantee you a specific amount of income for the service you provide. It is a great opportunity especially when you are new to the whole financial advisor landscape.
However enticing it may sound, being the owner of your own business is always better. Learning how to become an independent financial advisor is always the better option. Ensure to research and know all the requirements. Fulfil them before you fill up the application process and have all the documents ready. Complete the whole process and you can start your business once you get registered with SEBI. Help your clients to achieve the financial freedom they are aiming for.