Financial Advisors: Let's Take A Closer Look At These Money Managers

Financial Advisors: Let’s Take A Closer Look At These Money Managers

If the world of finance excites you, then pursuing a career as a financial advisor might be a good idea.

  • A financial advisor advises clients about money management to help them reach their financial goals.
  • Financial advisors also offer multiple services, such as portfolio building, tax and estate planning, and more, or they specialise in only making and managing investments.

Who is a Financial Advisor?

A financial advisor is a professional who builds a wealth plan for clients that helps them reach their financial goals. The advisor helps their clients manage their money by giving them advice on investments, insurance, planning for retirement, and other things.

According to the Credit Suisse Wealth Report 2022, India had 7.96 lakh millionaires, which is expected to increase to 16.32 lakh (a growth of 105%) by 2026. The ultra-high-net-worth segment will increase by 63% during the five-year period from 2021 to 2026. As the number of wealthy people increases, there will be a demand for financial advisors to help them manage their money.

The following are a few critical duties of financial advisors:

  • Discuss financial goals with the clients and help them meet these goals
  • Explain the financial services offered
  • Inform and educate clients about the investment options, risks, and rewards of different plans
  • Recommend the most suitable investment options to clients based on their financial goals and risk appetite
  • Monitor client accounts and adjust investments for performance optimisation

Skills Required to be a Financial Advisor

A financial advisor needs to have a combination of finance knowledge and soft skills. The domain knowledge covers the finance and investment expertise that will enable you to meet your client’s financial goals. The soft skills will help you interact effectively with clients and other professionals and manage interpersonal relationships.

The following are some essential skills financial advisors need to have:

Financial Advisors: Let's Take A Closer Look At These Money Managers
Investment Management

It refers to managing an investment portfolio incorporating different financial and non-financial assets. It requires an understanding of different asset classes, research skills to identify investable-grade assets, and the buying and selling of assets while managing tax strategy and compliance.

Risk Management

As a financial advisor, you need to have skills in risk assessment to evaluate risks before delivering advice to clients. Besides, risk management will also enable you to anticipate any negative external or internal events and take timely action to prevent any adverse impact on the client’s investment portfolio and financial returns.

Interpersonal communication and relationships

Communication skills are essential for financial advisors as they solicit new clients and interact with them on an ongoing basis. Besides verbal communication, you need good non-verbal communication skills to determine unstated needs by understanding body language. Most importantly, you must have good active listening skills to clearly understand your client’s financial goals and read between the lines.


Empathy is an essential but often overlooked skill that enables advisors to establish a personal connection with clients. You must develop a bond with your clients to allow them to open up and share their financial details.

Besides being detail-oriented, diligent, and proficient in other skills as required in the current market climate, financial advisors must be up-to-date on the latest technology so they can provide a more comprehensive service. In order to keep up with changing trends and meet the needs of their clients, financial advisors must have access to the latest tools and information.

Financial Advisor Salary in India

There are different types of financial advisors, and their earnings vary accordingly. Primarily, financial advisors can be classified based on their fiduciary responsibility, which means that they are legally required to work in their client’s best financial interest. These advisors mostly charge clients a fixed fee equivalent to a percentage of the assets that they manage, an hourly rate, or a flat rate. The fee for only advisors’ income comes directly from the client, so it helps to avoid conflicts of interest.

The other category of advisors, who are not bound by fiduciary duty, charge fixed fees to clients along with earning third-party sales commissions. Their earnings can be entirely from commissions, while they don’t charge any fees to the clients.

A significant number of financial advisors are independent service providers, while the majority of them work for financial services companies. In India, the average senior financial advisor’s salary is 22 lakhs per year. Besides, salaried financial advisors can also earn bonuses depending on individual and team performance.

To Sum Up

If you are interested in finance and helping people achieve their financial goals without quitting your job, consider enrolling in a professional 2-year Distance MBA in Banking and Finance Management to become a professional financial advisor. After successful completion of the program, you can join a financial services organisation or become an independent advisor.  

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