What are the signals of knowing an adviser is good or bad?
Sadly even though one can write many points to know who is a good adviser…the need is for spotting the WRONG guy which is more important! If he says the following things, keep your antenna up and please pick up the signals:
1. Investing in equity is risky, so invest in debt: if he says this, it means he does not understand risk.
2. Short term is 1 year, long term is more than 1 year: He is a CA who should be filing your IT returns, not an investment consultant.
3. ULIPs are not a bad investment: He is a life insurance agent not a financial adviser / planner.
4. I will do it free if you invest through me: Managing conflict of interest is IMPOSSIBLE.
5. I will ask you to invest in about 10 fund schemes – between you and your wife. Again an agent and not an adviser…
6. “I will watch the markets for you and everyday tell you what to buy and what to sell. You see Mr. Client watching the market everyday and reacting is VERY VERY important for you” God!! run away from him…:-) he has no clue of what he is talking.
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