Professional investment advice is worth the cost

Professional investment advice is worth the cost

November 06, 2020 | 9930 Views

If you want to remove the wall between your kitchen and your living room, you’ll probably hire a professional to ensure you’re not taking out any load-bearing beams. Why? Because one mistake could compromise the structural integrity of your home, leaving you with a bigger mess than you anticipated.

Accessing expert investment advice can be as consequential to your future as consulting a pro before knocking out a wall in your home. In fact, your family’s future largely depends on the investment decisions you’re making today. Given the importance of these decisions, it’s easy to see why people hire investment advisers.

At a personal level, spending an extensive amount of time on your investments may not be possible due to your professional and personal commitments. Using the services of an investment adviser frees you of this burden while offering your superior investment advice.

Seeking professional services also gives you a good opportunity to build your wealth, which, in turn, helps you fulfil your financial goals and gives you a decent kitty for your retirement. Clearly, the price you pay for such advice is inconsequential compared to the benefits you reap.Let’s look at a few more reasons why good investment advice is worth the cost.

Over the years, capital markets have become increasingly complex and unpredictable. Where investing in equities is concerned, a simple ‘buy and forget’ strategy no longer works. With Indian capital markets being intrinsically integrated with global markets, macro developments externally impact our markets in addition to domestic developments. The number of factors impacting stocks at a broad level and at each stock-specific level has increased exponentially. Political upheavals, changes in oil prices, wars, interest rate movements, quantitative easing measures taken by different countries, developments in technology that impact business processes, etc. are some of the factors that impact stocks.

Keeping abreast of these developments and having the ability to put the implications of each of these factors in the right context in order to make ‘informed’ investment decisions requires years of expertise and deep skills. It requires full time commitment, extensive reading, having the ability to assess changes and make knowledge-based investment decisions.

Professional investment advisers with decades of investment experience, deep knowledge and expertise provide investors informed stock recommendations and closely monitor your portfolio to lock in your gains and avoid/lower losses. Just like you would go to a Chartered Accountant for tax advice, you must consult with an investment adviser for your investments. If you are sceptical about fees levied by such advisers, rest assured that every rupee paid is ‘value for money’ in terms of generating portfolio gains.

Ask a dozen people why they hired an investment adviser, and you’re likely to get a dozen different answers. This is because investments are highly personal, and the challenges and scenarios experienced by people can vary widely.

Generally speaking, however, there are several common reasons you might seek out the services of a investment adviser, including the following:

Industry Knowledge

Most people don’t have time to keep up with the financial industry the way they’d like to. Their careers, families and interests consume their days, and they don’t find the time to read up on financial news or follow the ebbs and flows of the market. Others find that the financial industry just doesn’t interest them. They’d rather spend their spare time in other pursuits.

A good investment adviser, on the other hand, has a depth of industry knowledge that can benefit your portfolio and your planning in a number of ways. Whether it’s anticipating changing regulations or taking advantage of new opportunities, you can gain an insider’s edge when you hire an investment adviser.

Individualised Solutions

It’s true that you can find generic investment advice just about anywhere these days. By watching videos, reading books, listening to podcasts and reading blogs you can be exposed to the wisdom of industry professionals and experts.

But remember, none of this advice is tailored specifically to your unique situation.

When you hire an investment adviser, you can have an expert analysing your risk profile and crafting solutions for you.

Personal Accountability

Yes, you know that you need to create an investment portfolio, but it’s one of those things that’s easy to procrastinate. By hiring an investment adviser, you commit to bringing someone on board who can help to move the process along and provide some accountability for your planning.

Even after you have a portfolio that brings you security and peace of mind, an investment adviser can help you to review your portfolio from time to time ensure it’s performing as intended and to suggest changes based on present market environment or other economic factors. This ongoing accountability can keep you on track to meet your long-term goals.

StockAxis is a SEBI registered investment adviser with a credible track record and deep research skills. Our clients have been reaping gains from our stock recommendations and monitoring services helping them build serious wealth.

To get in touch with an StockAxis research analyst, reach out to us today.

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