Be an Independent Financial Adviser

 Financial sector reforms have opened up host of opportunities for individuals in banking, insurance and financial services. India has a growing set of High-Net-worth Individuals (HNIs) who require holistic solutions for personal finance. Aspirants can provide acute guidance to HNIs for fulfilling their financial goals. Some of the questions that you may face are:

  • Is this career opportunity right for me?
  • I am happy selling insurance for many years...why should I look at any other alternative?
  • What are the benefits to being an independent financial adviser?
  • What if markets remain volatile?

Opportunities galore

Assets under Management (AUM) for the mutual fund industry stood at Rs. 493,285 crores (Source: AMFI, 9 April 2009). According to the Investment Commission of India, the AUM is expected to grow by 15% till 2010. With over 35 Asset Management Companies and more than 5,000 schemes, the penetration of household investment in mutual funds is still less than 10%. Independent Financial Advisers can create their own value proposition for clients. Sometimes advisers offer a broad spectrum of services or position themselves as a niche service specialising in certain areas like tax or real estate.

Going beyond insurance

For decades agents and brokers have endorsed insurance products in India. Advisers go beyond a product and establish an association with the client. In a rapidly expanding financial services domain, professionals have to remain ahead of the curve for prospecting new clientele while managing existing client accounts. HNIs are increasingly looking at attractive product mix, online access, high level personal attention, performance reporting and tax planning. Using a suitable range of products, the adviser ensures the twin objectives of hedging clients' portfolio against risks and optimising returns.

Sustainable income

Rewards are structured on fee-based model, commissions, annual or retainer fees as well as asset based fees. A substantial effort is required to establish brand equity with potential clients. Maturity of the business depends on nature of clients, management of expenses and Assets under Administration (AUA). Over a period of time, advisers run a profitability check to recognise valuable relations and cost effective practices. Revenues can be generated across market cycles based on long standing relationships with clients and AUA.

Volatile Markets

In a falling market, advisers need to constantly educate clients and emphasise concepts like long term investing, power of compounding and portfolio rebalancing. Advisers concentrate on wealth creation backed by realistic expectation of various market scenarios. Advisers recommend products considering fundamentals and business cycles despite adverse market movements.

Signing up with iFAST

A web-based platform will facilitate you to open and administer accounts for your clients as well as streamline investment solutions. Clients can access their portfolios and execute trades with ease. An automated system reduces your time and effort plus quickens your response to client requests. Technology support for portfolio management enables you to conduct real time analysis, diagnose problem areas, re-balance portfolios and build model portfolios.