Know more about who is a mutual fund advisor?

Mutual fund investing requires a thorough understanding. Nowadays it is easy to get information and compare different types of funds online. However, mutual fund advisors can help keep things in perspective.


In this article, we will show you how an investment advisor can help you make an easy decision through the following topics and how to select a mutual fund advisor.


You may have been approached by someone who is trying to recommend a specific fund. Who are these people? In the last few years, Mutual Funds have become a popular investment vehicle and mutual fund advisors near me can help me to figure out all these things.


Now more and more people are turning to mutual fund investing and why not? Mutual funds offer you the benefits of diversity, liquidity, easy customization and expert management. However, it also demands a certain level of awareness from the investor sector. So, you need to know your investment goals and risk profile which can help you choose a fund accordingly. This is when a mutual fund advisor comes into the picture.

Who are the mutual fund advisors in Pune?


Mutual fund advisors in Pune are qualified professionals who can understand the purpose and details of the fund. Their job involves finding out which funds match the interests of the investor. Thus, the person or a company should get a valid certificate from the National Institute of Securities Market (NISM). Eligibility Test is ‘NISM Series V-A: Mutual Fund Distributor Certificate Test’. AMFI issues an ARN number after this test is clear. If you are willing to get in touch with a Financial Advisor in Pune nearby, you can search on google as “mutual fund advisor near me.”


Therefore, the mutual fund advisor should be able to understand the investment objectives and needs of the client. If you have a fear of Equities, Don’t worry, a fund advisor will take care of you. There are laws to ensure moral compliance – ‘fiduciary duty’. It is the ethical responsibility of the advisor to disclose all details about the investment. They should avoid conflicts of interest and also accept any compensation they receive for recommending certain investments.

The Role and Responsibilities of mutual fund advisors 


  • Investor education

The mutual fund advisor has to create a financial plan for the client by educating the investor on the financial goals and how to achieve it. It explores different investment options. Therefore, an investor can easily assess how an advisor can help to define the client’s financial goals.


  • Assessing the Risk appetite

Mutual fund Advisors suggest appropriate investment strategies based on the investor’s risk appetite. For example, equity funds are riskier than debt funds and not every investor would prefer them. The mutual fund advisor considers long-term and short-term financial objectives, investment tenure, age, expenses, family status, and current financial obligations before formulating an investment strategy.


  • Analysis of investment options

Once the client’s objectives and needs are met, the mutual fund advisor completes a thorough analysis of the market situation. They then recommend equity, debt fund or money market instruments accordingly. Advisors also stay up to date with the latest financial news and make sure they provide relevant advice.


  • Creating the right investment strategy

After analyzing the client’s potential investment options,a mutual fund advisor plans the right investment. It combines different investment options to diversify the portfolio to minimize risk and maximize returns.

For example, combining equity funds along with debt funds for risk adjusted returns – advisors may reconsider strategies if customer targets change. The mutual fund advisor, therefore, keeps a close eye on the client’s portfolio and suggests changes if necessary.


  • Helping investors to diversify their portfolios

Diversification plays a major role in spreading the overall risk across different investment ranges. A lot of research traces the best options in the field and market investing. Therefore, mutual fund advisors play an important role in optimizing the portfolio and minimizing risk.


  • Tracking of investments regularly

An important aspect of a fund advisor job is to handle the client’s discretionary financial information. Therefore, there is a record of the services they provide – receipts, details of the service offered and any other transactions. This documentation is important during a firm’s audit by a regulatory body.

How to choose a mutual fund advisor in Pune?


It has always been easy to invest in mutual funds. Internet access has made it easy. These days one can buy a Mutual Fund with a few clicks. However, we believe that in some cases, a mutual fund advisor can make a big difference, especially with new investors who don’t have a clear idea about mutual fund investing. But some wanted to know if there were a few simple rules to follow when choosing a mutual fund advisor in pune.


  1. Experience: When choosing a mutual fund scheme, the experience of a fund manager in different markets is invaluable. At the same time, it is important to pay attention to the mutual fund advisors who are at least getting stuck in the market. The last major downturn in the Indian financial markets took place almost a decade ago. 


  1. Portfolio Building: The key role of a mutual fund advisor is to connect investors to understand the underlying asset classes in mutual fund schemes and to achieve their investment objectives. Look for mutual fund advisors who are willing to take a holistic approach to your portfolio, perform a risk profiling process, understand your financial objectives and investment objectives, and then suggest a mutual fund plan or combination of plans for you.


  1. Ask for Referrals: Request a mutual fund advisor to share referrals, investors he has worked with and who are in the same life stage. Also, possibly for those who have worked with him / her for more than five years. Reach out to them to check out the mutual fund advisor’s advice and their own experience on the service.


The difference between a mutual fund advisor and a fund manager


It is important to note that there are many differences between a mutual fund advisor and a fund manager. They are not the same and, a fund manager, also called a portfolio manager, is responsible for maintaining an investment account. He builds a portfolio keeping in mind the client’s long-term financial goals.


Based on the client’s financial goals, Mutual Fund advisors recommend the right investment plan for achieving that goal. Successful Mutual Fund advisors, therefore, have the excellent analytical ability, subject matter skills and customer service skills. It helps customers achieve their financial goals. It would be great if you also had a clear idea of ​​how much a consultant might charge for a commission, a fixed fee, or both. This is different from the amount of fee of the fund house.


In short, a competent mutual fund advisor can make a big difference in experience and skills. Note that the mutual fund advisor is different from the distributor. For example, Invest First Advisors is an AMFI Registered distributor and also a mutual fund advisor that recommends the best performing funds from the top fund houses. So, what are you waiting for? Hire an Advisor and start investing.