Do You Want To Make Your Career In The Finance Industry??
If your answer is yes then you are at the right place, because here you will get to know about all your question marks related to becoming a good financial advisor.
Here, you will get to know about who is a financial advisor, his/her job, skills required, eligibility criteria, career opportunities, challenges, career growth…
As we all know, the concept of financial literacy is not a cup of tea for all people because it is a much wider term and includes all the instruments related to finance.
So, here comes the need for a financial advisor.
Who Is A Financial Advisor?
A Financial Advisor is a person who has in-depth knowledge of finance and all its instruments. He is an expert in the field of finance and gives financial advice to his clients based on his knowledge so that they can achieve their life goals. He does financial planning for his clients and manages their finances so that they can achieve their goals related to money on time. goals could be different for a different set of people it could be buying their own house, saving for a child’s education, retirement planning, or foreign tour, etc.
The process of advising involves analyzing the current financial situation and setting appropriate objectives for the future.
A financial advisor must have a good bank of knowledge related to accounting, business, economics, law, and finance.
What Does A Financial Advisor Do?
A financial advisor analyzes the financial needs of individuals and helps them park their money in good investments, coordinating insurance benefits and legal contracts. Regardless of how long you have a goal or when you want it to be reached, a financial advisor can help you reach your goal on time or save you from losing out on unforeseen expenses.
These advisors use their knowledge and skills to construct personalized financial plans for individuals according to their needs, also they give advice related to saving and budgeting.
Services offered by financial advisors:
● Investment Advice: Financial advisors use their knowledge and experience to create an investment plan that fits your style, goals, and risk tolerance. They are skilled in developing an investing strategy, identifying opportunities, and making adjustments as needed.
● Debt Management: The financial advisor can help you make a plan to pay down your debt and avoid getting into debt in the future.
● Budgeting: A financial advisor will give you strategies to create a budget that help you meet your goals.
● Tax Planning: it includes tax return preparation, maximizing tax deductions, best use of long and short term tax-laws, etc
● Insurance Advice: A financial advisor will help you choose a good insurance policy according to your need and your budget
● Retirement Planning
● Education Planning
The Process To Become A Financial Advisor:
If you are keen on taking up the career of a financial advisor, it is essential that you must have an MBA in finance or related fields. A bachelor’s degree in these areas can help you understand the intricacies of the job better. The minimum education required to become a financial advisor is an undergraduate degree in finance and economics. If you have studied an MBA before, this will be one more advantage for you as it would help you understand the intricacies of financial matters better.
Also, you can have a valid certification from the national institute of security market (NISM) to become a professional financial advisor, this institute was set up by SEBI in the year 2006.
The Indian financial services industry is growing at a phenomenal pace and there exists a huge opportunity for financial advisors. There are a lot of job opportunities for financial advisors in metro cities, one can find employment in life insurance companies, wealth management firms, investment banks, financial consultancy firms, etc.
There are ample job opportunities in both public as well as private sectors. Top recruiting private firms are HDFC, Mahindra, Kotak, Motilal Oswal, ICICI securities, Reliance industries, etc. Public companies namely LIC and NIACL also provide a lot of job opportunities for financial advisors.
SEBI Registration Guidelines:
If you wish to become a financial advisor or an investment consultant in India, SEBI registrations are an important step. Before SEBI’s Investment Advisers Regulations, 2013 took effect, anyone could start operating as an investment adviser. The rules now require every registered investment adviser to have a license with SEBI. A full-fledged Registered investment advisor refers to someone who gives investment advice or manages client assets of Rs. 25 lakhs or more per annum and advises about equities or fixed-income instruments like bonds and shares. These regulations declared as that registration is mandatory for investment advisers.
But, it exempts certain categories of people from registration such as mutual fund distributors, insurance agents, or brokers advising on insurance products.
Financial Advisor’s Modes Of Earning In INDIA:
For financial advisors, there are 3 main ways to earn. Client fees would be the easiest way and can be paid by every customer or you can charge clients directly. Commissions are in between them and they are generally paid by the client who uses your service only after that he approves of your services. Job/self-employed is when you work on a full-time basis and self-employment includes earning from other sources like stock market trading, property rentals, owning a consultancy firm, etc.
● Client’s fees: In general, the advisor charges clients for their services by charging them a fee for each investment product offered, though some advisors may charge clients monthly retainers.
It may vary from as little as Rs.6000 – 50000 per annum.
In INDIA not everyone can charge their clients for their investment advice. Firstly, they have to get registered as an investment advisor under SEBI to charge their customers for their consultancy
● Commission-based: In the commission-based financial advisor, the asset manager or broker receives a commission simply when a client purchases an investment product from them.
● Job/Self-employed: you can also do a job in the field of financial advisory after completing your education and certification or you can start your career as self-employed.
If you are a good financial advisor and have a good experience in the field of financial advisory then the sky is the earning limit for you, in the field of financial advisor there is a lot of potentials, only you need to do it with full dedication.
Also, there are some skills that you can develop in yourself to get a boost in your career, namely:
● Communication skill
● Human relation management
● Ability to handle stress
● Leadership Personality
here, we are at the end and now we are more familiar with the term financial advisor after reaching here, we have read about who is a financial advisor, what a financial advisor do, employment opportunities, salary, eligibility criteria, modes of earning, SEBI registration guidelines, services offered by financial advisors and process to become a financial advisor
Now I think that you have got answers to all your question marks