Fee only financial advisors usually act prudently and ethically with respect to helping investors build their investment portfolios. This way, they are not supposed to receive commissions or incentives for the sale or promotion of investment or financial products.
However, the SEBI registered fee only financial advisors are supposed to use their intellect and expertise in helping their client investors build healthy investment portfolios.
In this parlance, let us discover 6 holistic ways by which fee only financial advisors provide unbiased and objective financial advice to investors. Helping you get started here:
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Table of Contents
Transparent fee structures
The fee only financial advisors are expected to be extremely genuine with respect to levying fees for their client investors. Here, they expect flat slabbed fees and this would be a one-time transaction with respect to the client the financial partner is dealing with.
Otherwise, the advisors charge clients by the hour. Or, a percentage of the client’s assets under management or AuM is calculated and the fees are levied to the financial advisor.
These advisors therefore charge a transparent fee structure to their clients and do not undertake hidden charges whatsoever.
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Provides an exemplary level of service to clients and customers
The fee only advisors have to comply with the strict and ethical guidelines as laid out to them by the Securities and Exchange Board of India or the SEBI.
Therefore, they do not promote products just to earn those extra commissions or incentives. Therefore, advisors dedicate their complete time and attention to helping their clients and investors reach their financial goals.
They create healthy portfolios for their clients by adding diversified investments and financial portfolios inside income-generating baskets and the level of service the fee only advisors provide to their clients and customers is exemplary as compared to mediocre financial pliers out there.
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Ethical and trustworthy
The SEBI registered fee only advisors are ethical in the way they deal with their clientele. They work in accordance with their client’s tailor-made requirements and provide customized solutions with respect to helping clients build their financial portfolios ethically.
They do not work for their personal interests. Therefore, they always put the client’s needs or requirements on the top-most pedestal and are ethical and trustworthy in their approach to helping newbie or amateur investors too.
Here, the advisors must not indulge in sales or promotion of other investment products that could potentially lead to a conflict of interest between them and their clients.
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Provide an unbiased and holistic form of financial advice
Fee only advisors provide an unbiased and holistic form of advice that is usually in the best interests of investors. They are not supposed to indulge in sales or promotions of investment products to gain extra commissions or incentives – directly or indirectly.
Therefore, they employ their time and attention wholeheartedly to work with clients and investors on an amicable note indeed. They help investors with a wide range of financial planning activities to help their clients achieve their financial goals.
Fee only financial advisors help clients with a number of activities that require a meticulous and comprehensive level of planning. These include:
- Retirement planning
- Estate planning
- Risk management and
- Tax planning
Here, they maintain a transparent and ethical approach to helping investors in their motive to generate income or wealth on a long-term basis without being biased or judgemental in their approach to dealing with their clients or customers.
5. Client-centric focus
A fee only financial advisor works without compromising on the quality of service the personnel provides to clients or investors. This is mainly because they do not allow income to flow via commissions or incentives on the sale or promotion of financial products. Or persuade customers to foreclose investment deals while keeping their vested interests in mind.
Their approach is to help investors evolve in a healthy manner. Therefore, fee only advisors work on building long-term relationships with their clients and customers to help them achieve their financial goals in a holistic and realistic manner.
In a nutshell, these financial advisors solely align their advice or recommendations that are best suited to the interests of their clients.
6. Maintains fiduciary standards
Fee only advisors are independent financial practitioners and are not intermediaries between the client and the firm or vice-versa. Therefore, the model is a B2C (Business to Customer) model.
Therefore, they provide front line services of financial planning and manage investment portfolios of their clients that comply with fiduciary standards.
Therefore, the financial services they offer or recommend are done in a highly transparent and unbiased manner with nothing falling in between the client and the customer.
Above all, the independent fee only advisors are supposed to follow the ethical norms and guidelines as laid to them by the Securities and Exchange Board of India or SEBI. Therefore, they work following ethical and stringent norms while helping their clients.
Conclusion
As SEBI registered fee only advisors are fiduciary personnel, they usually provide the highest level of financial services to clients under varied investment categories.
They provide a versatile range of financial services like estate planning, retirement solutions, tax planning, asset allocation, and more. This way, they provide a comprehensive and holistic range of services that could help inexperienced investors move their levels up with respect to financial planning. This way, investors could create a highly profitable income source that can help them gear themselves to achieving their short-term or long-term investment goals in a phased and strategic manner.
As they do not work with other sales generation gimmicks like adding up commissions or working for incentives, they do not push expensive investment products to their clients. These advisors weigh the pros and cons of every investment plan before making their recommendations to their clients.
Above all, they provide financial advice on market trends to protect the interests of investors, save investors from making impulsive decisions with respect to their investment moves, and help them save their capital investment even during adversaries.
This way, the fee only advisors work towards building a better investor population further aiming at economic stability and growth.
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