The nature of the securities market is very unpredictable, and it is a vast sector. It is necessary that you make an informed decision. Investors need help from expert Investment Advisors like David Snavely for various reasons to make their investment decisions for future needs. Every investor expects better returns from the money they are investing in an asset. No one wants their money to be misused in the wrong hands, so it becomes important to make sure that your money is invested in the most secured asset to get high returns.
So, every investor puts their hard-earned money into various financial products to get profit. It is good to remain cautious and ask suitable questions to their financial advisor.
Thus, it is essential to know all the dos and don’ts when you are taking advice from an Investment Advisor.
We can learn about an investment advisor and what should we do while dealing with them.
Who is an Investment Advisor (IA)?
An Investment Advisor is a registered agent. They provide investment advice to clients or other persons or groups of persons. These advisors need to affiliate themself with government authorities before providing their services.
They give you advice about investing, purchasing, and selling different financial products to make a profit for you. They mostly deal in securities or investment products such as equities. They are responsible for making your investment portfolios and financial planning a success.
Frequent malpractices you should be aware of:
The financial market always comes under scrutiny because there are some advisors following malpractices. Most of them are unregistered Investment Advisors:
- They offer assured returns to the clients.
- Charging exorbitant fees.
- Making false promises of handsome returns.
- Not considering the risk profile of the clients.
- Investing in higher-risk financial products.
- Trading on the client’s behalf without informing them.
- Upgrading or changing to higher-risk products without the consent of the client.
- Refund-related issues and others.
As per David Snavely, you need to be aware of all the market malpractices and proceed cautiously. Guard your finances against the odds:
Dos:
- Contact only registered Investment advisors with registration numbers.
- Make sure your Investment Advisor possesses a valid registration certificate.
- Offer advisory fees to your Investment Advisor nothing else through banking channels only.
- Maintain signed documents with all your payment details.
- Before taking any investment advice always ask an advisor about your risk profiling.
- Make sure your Investment should be strictly based on your risk profiling.
- Ask all relevant questions to your Investment Advisor to clear your doubts before acting on any advice.
- Read about the risk-return profile of the investment.
- Before making investments
- Takes note of liquidity and other safety aspects.
- Make sure to understand all the terms and conditions in writing, duly signed and stamped.
- Read all the rules and regulations carefully.
- Ask about advisory fees, advisory plans, category of recommendations, etc.
Don’ts
- Never trade with an unregistered Investment Advisor or any financial entities.
- Don’t hire an Investment Advisor who trades on your behalf.
- Never give your login credentials as a registered Investment Advisor do not ask for them.
- You should have complete control over your transactions, don’t let them make financial decisions on your behalf.
- Don’t make decisions in haste make sure you cover all the bases.
- Do not take risks make informed investment deals.
It is your priority your responsibility as an investor, to protect your money as you earn it with hard work. So you need to protect it from swindlers in the securities market. You need to cross-check the authenticity of the investor you are dealing with. Checking all of their credentials.