Key Takeaways:

• Understanding the importance of the advisory function.
• How advisors function to meet a client’s goal
• Tailor-made investment advice that’s custom made, based on an investor’s requirements.
• Why Investments are not ‘a one size fits all’ solution.

When we learn to cook, we all make mistakes and learn from our errors. We understand that some dishes take salt, some sugar and some time. So is the case with baking; there’s not a baker in the world who knows not to constantly peek or poke into a loaf of bread that’s still cooking. So is the case with our investments. The cooking metaphor is one that I love using – because it brings out the interplay between multiple ingredients, which when used in the right manner and right quantity yields a beautiful palatable dish. As Thomas Keller put it, “A recipe has no soul. You as a cook must bring soul to the recipe.” So does the advisor work towards ensuring that he/she brings the right set of investments with the mission to meet an investor’s return expectations. Essentially, advisors are capable of making sure that you meet your financial goals!

Being in the financial advisory space is so much like cooking a wholesome and nutritious meal. Ensuring that there’s a right mix of investment products – Stocks, funds, bonds, PMS and alternative investments to name a few. In today’s age of over information, where the internet has the answer to everything, weather it is arts, crafts, recipes, medicines or investments – a financial advisor is able to sift out the silt and nudge their clients in the right direction when it comes to investments. For opinions in other fields though, approaching an expert in their respective fields should help!

Every client comes with a different set of expectations, goals and risk appetite, akin to different people having different tastes and preference of cuisines. Curating the perfect menu and adding the right level of spices and condiments requires a curator, a chef who understands food – nutrition over and above that. Similarly, an advisor who understands investor needs and puts his/her clients’ interests before theirs; stands out. Curating the right basket of investments, ensuring that their clients are invested for the ‘right’ time, planning an exit strategy in addition to investing and educating clients – the onus is all on the advisory community.

As human beings we gravitate towards things that make our otherwise busy and tedious lives easy to navigate, and here comes the role of the advisor, who simplifies the otherwise complex world of investing by making it easier for us to understand and comprehend. As novices, many have burnt their fingers by giving into a friendly neighbor’s rhetoric when it comes to investing…well cooking too! While the core of an advisory role functions around asset allocation, there’s much more to it than meets the eye. Like an iceberg the tip of which is only 10% of its total mass, there a lot that goes into making an advisory function what it is. An advisor could play a pivotal role when it comes to closing the gap between where we are, and where we want to be financially.

Whilst having a financial advisor could entail a minimal cost, they make sure that their clients get the right mix of products that are presented and explained in a manner that’s easy to understand and comprehend, ensuring that the client’s portfolio is constantly monitored and rebalanced periodically. An advisor’s role involves a whole lot of research, ensuring that they remain updated about the markets, products and industry trends. Servicing their clients to ensure that behavioral biases don’t creep into their investments and educating them is another big part that they play in addition to client servicing and ensuring that the right messaging reaches the client.

For an investor, it’s important to pick the right advisor and place their trust in the hands of their capable financial advisor.