How To Become A Financial Advisor - A Guide For Beginners

How To Become A Financial Advisor: A Guide For Beginners

Are you an ace when it comes to taking care of finances?

Do your friends look to you for financial advice?

Have you noticed that people could be much better off with just a few adjustments to their financial habits?

If your answer to these questions is yes, then you are probably fit for a career as a financial advisor. There is much more to becoming a good financial advisor than handling finances well, but that is an essential prerequisite. A few essential qualities of a financial advisor are – apart from having a passion for finance – being curious, having an analytical bent of mind, and having excellent communication skills.

Let us explain how to become a financial advisor. 

How To Become A Financial Advisor - A Guide For Beginners

What Does a Financial Advisor Do?

financial advisor helps clients make smart investments and recommends how to distribute their investments, manage risk, and increase their earnings. They also assist with tax planning, offer financial health recommendations, and suggest financial strategies and habits to increase their clients’ wealth.

The clients could be individuals or organisations they regularly meet with to assess, review and improve strategies. Financial advisors can expect an average salary of about ₹3.72 lakhs, which could go up to about ₹22 lakhs per annum with the right qualifications and experience.

How to Become a Financial Advisor

Let’s look at the key skills required to become a good financial advisor:

1. Analyse Your Skills and Abilities

Any decision you make regarding a career must start by asking: Do you have the skills, knowledge or knack to excel in your chosen field?

a. What kind of financial skills do you possess?

If you are already good at digging up smart investments, predicting trends based on data and making recommendations, you’ve covered one part of how to become a financial advisor. Also, if you are exceptionally gifted at saving or financial strategy and keep yourself up to date with the latest tax information, that’s yet another part taken care of. If you’re into taking some risks and have dabbled in buying and selling stocks, bonds, annuities and insurance, you probably have a good foundation to start with.

You may possess only some of these financial skills, but you can develop them by pursuing a finance-focused course, like a Distance MBA in Banking and Finance Management from a good institution.

b. Are you good at handling people?

How you communicate with people, convey your ideas, listen to their needs and take measures to inspire their confidence is a crucial part of being a financial advisor.

  • Your clients should understand your vision — they must be able to visualise what you describe.
  • You need to build trust with your clients; after all, you will probably handle a significant chunk of their life savings.
c. Are you patient?

Being a financial advisor, you may be dealing with people far more experienced than you or non-specialists who need time to understand your advice. Financial advisors often expect their advice to be implemented immediately, but this only happens occasionally. These decisions take time, and you must learn to be patient as a financial advisor.

d. Are you business-savvy?

You aren’t merely offering your skills to others; you are building a business. This frame of mind applies whether you start your own firm or work for a larger financial institution. An entrepreneurial mindset will allow you to bring clients in line with your vision of how their finances should be used.

2. Practice Your Skills

Believing you have skills is one thing; it is just as important to be able to execute them. This can only be done through practice. You may have to start as a trainee or intern to gain experience. Your existing skills can be honed on the job, and you’ll also get the opportunity to learn from those around you and enhance your skill set.

3. Get the Right Qualifications

If you have the basic skills and are willing to put in the time, the most important part is getting the right qualifications to fortify your ability and add value to your resume. Pursue a Distance MBA in Financial Management while you are working. This will give you insights into finance, auditing, accounting and capital management. You will also learn business management while understanding finance principles and how they can be applied.

When deciding which MBA to pursue, make sure it includes the following:

· Financial analysis

· Cost accounting

· Management Accounting

· Financial Strategy

· Risk Assessment

· Capital Investment

· Critical and Analytical Thinking

· Managerial Skills with Operational Aspects

It is also vital that the faculty at your chosen institution has a wealth of academic and industry experience.

To Sum Up

Now that you understand how to become a financial advisor, take the right steps and begin your journey. Choose a Finance-focused program from a reputed institute like NMIMS Global that not only adds value to your profile but also prepares you for a successful career.

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