Financial
Consultant
"Financial consultants are a great option for those with limited time or investment knowledge. This guide covers who they are, their qualifications, and how to choose the right one."
Get Your Instant Quote
What Is a Financial Consultant?
Expert guidance to plan, manage, and grow your investments when you lack time or expertise
What Do They Do?
Understand Your Goals
Analyze investment horizon, amount, and risk tolerance
Suggest Investments
Recommend options matching your financial profile
Track Performance
Monitor and adjust underperforming investments
When Should You Hire One?
How to Choose the Right Consultant
Learn the Basics
Know 30% to ask informed questions
Check Track Record
Review past client performance
Set a Process
Define decision-making frequency
Communication
Ensure clear explanation style
How to Evaluate
| Factor | What to Look For |
|---|---|
| Education | Finance degrees, CA, CFA certifications |
| Experience | Years in market & client results |
| Research Skills | Market analysis capabilities |
| Fees | Reasonable cost for value provided |
| SEBI Compliance | Proper registration as RIA |
Consultant vs. Advisor
Both guide your investments. In India, they may have different certifications under SEBI rules, but share the same goal: helping you grow wealth safely.
Financial Consultant
- Focuses on implementation
- May execute trades
- Often product-specific
Financial Advisor
- Focuses on holistic planning
- Provides strategic guidance
- Typically fee-based
How Do Financial Advisors Make Money?
Understanding advisor fee structures helps you choose the right professional relationship
Percentage-Based
Typically 1-2% of assets under management annually
Example
₹1 Crore portfolio × 1% fee = ₹1 Lakh/year
Fixed Fees
Flat rates for comprehensive financial planning
Annual
₹25k-₹1L+
Hourly
₹1k-₹3k/hr
Commission
Earned on performance exceeding agreed targets
Structure
10-20% of profits above benchmark
When Not to Use an Advisor
No Investment Knowledge
Learn basics first to evaluate advice properly
Investing < ₹1 Lakh
Many advisors prefer larger portfolios
Didn't Compare
Always evaluate multiple advisor options
Choosing Wisely
Compare Before Committing
Evaluate fees, qualifications, and past performance across multiple advisors. Don't settle for the first option you find.
Understand Fee Structures
Know exactly how your advisor gets paid and how that might influence their recommendations.