Here are some tips on who NOT to pick as you stock advisor. I say this from experience having learnt lessons the hard way:
- Avoid an advisory company which is pushing other’s investment products. They do this for a commission, which means that their primary interest is not aligned to you.
- Avoid those who offer products with lockin. If you can’t take out your money for 3 years or more, it is because they want you to serve out the fee. Too bad, for you; they simply go find another.
- Avoid those with steep exit loads. Same as above. The more you stay with them the more they make off of you.
- Avoid those who get a cut on each transaction happening in your portfolio. The risk for you sit that churn in the portfolio end up increasing your costs and reduces your portfolio value.
- Avoid those who also do side business on loans. Surely those who get you into loans, are not the best suited to advise you on growing your wealth.
- Go for those who walk the talk; ie invest in the stocks they recommend. You can double check their profile or request for a third party auditor’s confirmation if available.
Finally, the best stock advisor for you is yourself (just like the best nutritionist). You must take out time to learn more about how to invest wisely in stocks.
If you do not have the time/skills to do this yourself, or are concerned about the emotional stress involved (yes, the latter is much more important than time/knowledge), then do engage a good stock advisory. Preferably a SEBI Registered Investment Advisor.
Disclosure and Note: http://JamaWealth.com meets all the above six principles; i am associated with them.
