{"id":472,"date":"2017-04-18T05:20:30","date_gmt":"2017-04-18T05:20:30","guid":{"rendered":"http:\/\/blog.kuvera.in\/?p=472"},"modified":"2017-05-03T04:59:50","modified_gmt":"2017-05-03T04:59:50","slug":"how-to-choose-an-investment-advisor","status":"publish","type":"post","link":"https:\/\/kuvera.in\/blog\/how-to-choose-an-investment-advisor\/","title":{"rendered":"Top 2 questions to ask before selecting an investment advisor"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_40 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" area-label=\"ez-toc-toggle-icon-1\"><label for=\"item-69e2238befe96\" aria-label=\"Table of Content\"><span style=\"display: flex;align-items: center;width: 35px;height: 30px;justify-content: center;direction:ltr;\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/label><input  type=\"checkbox\" id=\"item-69e2238befe96\"><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/kuvera.in\/blog\/how-to-choose-an-investment-advisor\/#When_selecting_an_advisor_use_the_KISS_principle_-_Keep_It_Simple_Stupid\" title=\"When selecting an advisor use the KISS principle &#8211; Keep It Simple Stupid!\">When selecting an advisor use the KISS principle &#8211; Keep It Simple Stupid!<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/kuvera.in\/blog\/how-to-choose-an-investment-advisor\/#There_you_go_two_simple_questions_to_ask_before_you_select_an_advisor\" title=\"There you go, two simple questions to ask before you select an advisor \u2013\">There you go, two simple questions to ask before you select an advisor \u2013<\/a><\/li><\/ul><\/nav><\/div>\n<p>There are numerous long and confusing 10 step articles on how to select an investment advisor. While they are all written in good intent, they have a lot of mumbo-jumbo like &#8220;is your advisor a good fit for you and your family&#8221; which is more suited for a dating website \ud83d\ude42 More importantly, they all fail to include the single most important question one has to ask an advisor or broker &#8211; have they managed money before and with what results?<\/p>\n<h4><span class=\"ez-toc-section\" id=\"When_selecting_an_advisor_use_the_KISS_principle_-_Keep_It_Simple_Stupid\"><\/span>When selecting an advisor use the KISS principle &#8211; Keep It Simple Stupid!<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>We will keep this list simple &#8211; only the top two things to consider when selecting an investment advisor or broker. Btw, <a href=\"http:\/\/blog.kuvera.in\/010-why-investing-is-so-complicated-and-how-to-make-it-simpler\/\" target=\"_blank\" rel=\"noopener noreferrer\">here<\/a> is a great article on how to make investing simple too.<\/p>\n<p><span style=\"text-decoration: underline;\"><strong>Has your investment advisor or broker managed money before?<\/strong><\/span> \u2013 this goes back to first principles. Why do you need investment advice? \u2013 to \u201cgrow\u201d your money to reach your goals. Don\u2019t be the first client that your advisor is \u201cgrowing\u201d money for. Let them work with successful money managers and learn the trade like all other professions. Then trust them with your money.<\/p>\n<p><img loading=\"lazy\" class=\"alignnone wp-image-503\" src=\"https:\/\/blog.kuvera.in\/wp-content\/uploads\/2017\/04\/hawking.jpg\" alt=\"Illusion of knowledge is dangerous\" width=\"318\" height=\"318\" srcset=\"https:\/\/kuvera.in\/blog\/wp-content\/uploads\/2017\/04\/hawking.jpg 225w, https:\/\/kuvera.in\/blog\/wp-content\/uploads\/2017\/04\/hawking-150x150.jpg 150w\" sizes=\"(max-width: 318px) 100vw, 318px\" \/><\/p>\n<p>Let\u2019s think of a hospital analogy \u2013 would you put your health in the hands of nurses just because they have been around doctors for a long time? Don\u2019t do that with your finances either. Someone who has worked in technology at a bank, or someone who has research experience at a bank etc does not gain any investment chops just because of proximity. Remember, none of them have managed money. These are nurses, not doctors. They are not the advisors you are looking for. Look for practitioners, who have apprenticed and have years of successful money management experience. You will get value from their advice.<\/p>\n<p><strong>Who is paying your investment advisor or broker and how much?<\/strong> \u2013 if it is not you, <a href=\"http:\/\/blog.kuvera.in\/019-5-signs-that-your-financial-advisor-is-not-working-for-your-best-interest\/\" target=\"_blank\" rel=\"noopener noreferrer\">you are in trouble my friend.<\/a><\/p>\n<p><img loading=\"lazy\" class=\"alignnone wp-image-509\" src=\"https:\/\/blog.kuvera.in\/wp-content\/uploads\/2017\/04\/Slide02-300x300.jpg\" alt=\"Mutual Fund Commissions\" width=\"327\" height=\"327\" srcset=\"https:\/\/kuvera.in\/blog\/wp-content\/uploads\/2017\/04\/Slide02-300x300.jpg 300w, https:\/\/kuvera.in\/blog\/wp-content\/uploads\/2017\/04\/Slide02-150x150.jpg 150w, https:\/\/kuvera.in\/blog\/wp-content\/uploads\/2017\/04\/Slide02-768x768.jpg 768w, https:\/\/kuvera.in\/blog\/wp-content\/uploads\/2017\/04\/Slide02.jpg 900w\" sizes=\"(max-width: 327px) 100vw, 327px\" \/><\/p>\n<p>Let&#8217;s look at two examples &#8211;<\/p>\n<ol>\n<li>Will you trust a doctor who is paid by the medicine companies and her service is free for you? Of course not as she will prescribe more medicines or prescribe the most expensive medicines (higher commissions).<\/li>\n<li>Will you trust an auditor to do your tax filing who is paid by the IT office and his service is free for you? \u2013 of course not as he would have no incentive to save you taxes (higher commission).<\/li>\n<\/ol>\n<p>This is called \u201cconflict of interest\u201d and no amount of good will posturing such as \u201cwe always work for our client\u2019s best interest\u201d has been able to overcome it ever.<\/p>\n<p>Similarly why go to a distributor who is paid <a href=\"https:\/\/kuvera.in\/assets\/documents\/Mutual_Fund_Commission_Payout.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">a commission<\/a> by the Mutual Fund company? They will guide you towards Mutual Funds with higher commissions. You are better off\u00a0 <a href=\"https:\/\/kuvera.in\/blog\/direct-plans-better\/\" target=\"_blank\" rel=\"noopener noreferrer\">investing in Direct Plans<\/a> and paying only for advice.<\/p>\n<p><img loading=\"lazy\" class=\"alignnone wp-image-504\" src=\"https:\/\/blog.kuvera.in\/wp-content\/uploads\/2017\/04\/conflict.jpg\" alt=\"Conflict of interest \" width=\"313\" height=\"361\" \/><\/p>\n<p>&nbsp;<\/p>\n<h4><span class=\"ez-toc-section\" id=\"There_you_go_two_simple_questions_to_ask_before_you_select_an_advisor\"><\/span>There you go, two simple questions to ask before you select an advisor \u2013<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ol>\n<li><strong>Who pays your advisor or broker? i.e are they working for your best interest?<\/strong><\/li>\n<li><strong>Has your advisor or broker managed money before?<\/strong><\/li>\n<\/ol>\n<p>Simple and sound.<\/p>\n<p><a href=\"https:\/\/kuvera.in\" target=\"_blank\" rel=\"noopener noreferrer\"><strong><u>Kuvera<\/u><\/strong><\/a> &#8211; India\u2019s best goal based investing platform. Saving you lakhs in commissions through Direct Plans of the best equity and debt mutual funds.<\/p>\n<p>If you like this post, share the love below..<\/p>\n","protected":false},"excerpt":{"rendered":"<p>There are numerous long and confusing 10 step articles on how to select an investment advisor. While they are all written in good intent, they have a lot of mumbo-jumbo like &#8220;is your advisor a good fit for you and your family&#8221; which is more suited for a dating website \ud83d\ude42 More importantly, they all [&#8230;]<\/p>\n<p><a class=\"btn btn-secondary understrap-read-more-link\" href=\"https:\/\/kuvera.in\/blog\/how-to-choose-an-investment-advisor\/\">Read More&#8230;<\/a><\/p>\n","protected":false},"author":2,"featured_media":615,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false},"categories":[91],"tags":[94,95,93,67],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Top 2 questions to ask before selecting an investment advisor - Kuvera<\/title>\n<meta name=\"description\" content=\"How do you decide which investment advisor (online or offline) to use? 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