What To Look For In a Financial Advisor

Keeping track of finances is the most crucial aspect of building wealth for the future. 

You can surely do it on your own until your financial instruments grow in every possible direction. Your family expands, your needs and wants increase, and your liabilities take a different turn. 

And when that happens, you are going to need a trustworthy and knowledgeable financial advisor. 

Financial Advisors can understand YOUR financial goals to give you the right advice. 

You need a financial advisor for-

  1. Creating a sustainable investment portfolio
  2. Monitoring your investments and taxes
  3. Tracking your expenses
  4. Creating savings for Children’s Education/Wedding 
  5. Emergency corpus building
  6. Retirement Plan
  7. Other liabilities

But the question is: How to select the right financial advisor? Whom can you trust with your wealth?

Not to worry. We have got you covered. Here’s what to look for in a financial advisor.

6 Things to Look for in a Financial Advisor

1. Look for Knowledge

Managing finance isn’t an easy thing. Even financial advisors learn from their mistakes as the market can be unpredictable.

When you look for a financial advisor, always check their knowledge and professional background. You can ask them for references and talk to their clients for more information.

Advisors who have handled finances through various cycles of the economy will bring more knowledge and experience to the table. Apart from the equity market cycles (which everyone seems to be savvy of, considering the information overload), an additional factor to consider is the number of interest rate cycles the advisor has worked through. Bonds and various debt instruments form an important fragment of asset allocation so it’s important to know whether your advisor is well-versed with the impact of interest rates on investments.

The market is full of financial advisors who can claim unrealistic outcomes, but you should evaluate realistic scenarios.

This brings us to the next point.

2. Realistic Expectations

No advisor can promise you how much returns you will get in a year. 

If an advisor is claiming 25-30% returns in a year, that’s a big NO right there. 

In fact, the word ‘Guaranteed Returns’ is not listed in an advisor’s dictionary.

Instead, experienced financial advisors will give you realistic estimates. They can plan your investment based on your risk profile, short and long-term goals, taxation, and insurance.

3. Proper Licenses

Financial advisors must have a license for the financial instruments they are selling. Certified Financial Planners (CFPs) or Chartered Accountants (CA) can guide you with finances and taxes.

If you want to invest in mutual funds, Advisors having a certificate from the Association of Mutual Funds in India are best suited. For insurance products, you may seek advisors who have a license from the Insurance Regulatory and Development Authority of India.

Always prefer working with certified financial experts. 

4. Financial Advisors Should Focus on Your Goals

You might have come across advisors who are more interested in selling financial instruments than to help you. That’s a red flag. 

Your financial advisor should focus on your financial goals, your investments, and your risk profile. The reason you are hiring a financial advisor is to simplify budgeting, taxation, insurance, long-term investments, and more.

If their focus is more on commission than on your needs, you shouldn’t proceed. Work with an advisor who is willing to listen to you before giving any sort of advice.

Tip See if the financial advisors have worked with clients who have similar interests/goals as you. Seek old track records of the advisor’s clients and their progress before making a decision.

5. Financial Advisors Must be Passionate About Wealth Management

Is your financial advisor talking passionately about current market scenarios and industry trends? If yes, you’ve got a good one there. 

Passionate financial advisors tend to constantly be in a learning and researching phase. They love to know what’s happening in the market. They gravitate towards finding out about new financial products, changes in law, new methodologies, and more.

Their passion becomes their primary gateway towards gaining relevant experience. If you want to know if the financial advisor is aware of new trends, ask them- “What’s new in the industry?” and see how they answer.

6. Communication Skills

It’s normal to be skeptical about letting someone else handle your finances. Trusting someone won’t come easily.

That’s why the communication skills of an advisor matter a lot. 

Your advisor should be able to explain finances in simple language. You should be aware of what’s going on with your investments. The advisor must be able to answer your queries and communicate all necessary details with you.

Often, you might come across advisors who talk a lot but offer no useful insights. 

An advisor should be able to share his/her experience, client success stories, suitable investment possibilities for you, and real-time market insights. And as an investor, you must seek this information as often as you can.

Keep communicating with the advisor to be on the same page. 


Everyone loves adulthood until the finances knock on your door with possibly ten arms. Then childhood seems much easier. You had nothing to worry about apart from your piggy bank. 

Remember though, your finances don’t need to be complicated. You can easily get everything sorted with the help of a financial advisor. 

Most of the time, people are not on-board with the idea of letting someone else manage their finances. But think of it as a collaboration. When you let an expert handle your money, you have a chance to earn more. Your money can bring more money with suitable investments.

But don’t forget to do your research as well.

You can analyze your portfolio for free at VNN Wealth to have a thorough glance at your investment. Once you have a clear idea of what you want to achieve in the next few years, our financial experts can guide you. You can explore all types of investment opportunities that can build wealth in the long run.


Have more queries regarding investments and finances? Contact us anytime.