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Tata Capital > Blog > Wealth Services > Do I Need a Financial Advisor for My Portfolio?

Wealth Services

Do I Need a Financial Advisor for My Portfolio?

Do I Need a Financial Advisor for My Portfolio?

The answer is Yes, and here is why! With so many new financial products in the market, each scheme more elaborate than the other and best suited for certain times in your life, a financial advisor is worth the money. Additionally, if you are a relatively new investor who is still learning the ropes of the market, a financial advisor is worth the money if you are uncertain about how to manage your money.

So, while the DIY approach to investing sounds attractive, it can quickly backfire if you are treading alone. On the other hand, financial advisors are professionals who study the tides of the market and provide financial services to clients based on their financial situation and stay updated on both market and non-market-linked financial instruments.

The Top Benefits of Hiring a Financial Advisor

Here are the five reasons why seeking professional financial advice makes a tonne of sense.

Unparalleled Expertise

The most obvious benefit to hiring a financial advisor is their seasoned expertise in matters of finance. After all, they have dedicated most of their adult professional life in understanding  and formulating several financial instruments.

Therefore, they are adept/skilled at answering any finance-related dilemmas. They can also tailor your investments based on your personal needs, risk appetite and investment horizon. This enables you to save more and create capital rather than transferring it from one investment to another.

Diversification Assistance

How successful your investments are has a lot to do with how you diversify them. Simply speaking, it is the practice of diversifying your funds into different instruments to limit your risk exposure while gaining maximum returns.

A financial advisor evaluates the present market cycles along with your personal financial aspirations to create a diversified basket of investments. This way, you don't lose any money during any market volatility.

Striking a balance between instruments often requires insight and experience, both provided by financial advisors.

High-Value Investing

For Debt securities, you may require less handholding when investing in fixed-returninstruments. The story changes the minute you wish to make high-value market investments. This may include a more difficult-to-understand crop of mutual funds, shares, stocks, derivatives, futures, etc.

At this time, you can either base your high-value lump sum investments on hearsay and hunches or do right by your hard-earned finances and seek professional financial advisory.

Portfolio Management

In addition to building the right portfolio, monitoring and managing it daily or weekly is not every investor's cup of tea. But, for a financial advisor, it is! Not only do these professionals build you a strong portfolio, but they also keep analysing future scenarios based on your growing income and pre-empt the instruments you should be investing in the near future.

Their foresight in building and managing your overall portfolio helps you grow your wealth over a long-term period

When Do You Need a Financial Advisor?

To answer this, you must ask yourself the following questions.    

  • Do I have ample knowledge about markets and non-market-linked investments?
  • Do I understand wealth management and the study of different  types of financial instruments?
  • Have I gathered specific expertise on most financial instruments?
  • Do I have enough time to monitor and manage each investment within my portfolio?

If your answer is no to even one question, you need a financial advisor. Hiring one will lend your investments objectivity. As a result, you won't be susceptible in making emotional or knee-jerk mistakes while investing.

In The End

Are you looking for credible financial advisory? Turn to the seasoned experts at Tata Capital Wealth. Our financial advisors can assist you with all financial and investment-related matters. You can count on us to build and manage a robust financial portfolio based on your risk appetite, investment horizon and capital appreciation aspirations.

To know more, reach out to us today!

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