Importance of An Independent Financial Advisor

The world of investments is a large and complex one. In order to find your way and make the right decisions as an investor, you need a lot of information and assistance. There are two ways of fulfilling this need. One is that you do your own research on the internet and take the DIY route. The other option is hiring a professional, independent advisor.

Who Is An Independent Financial Advisor?

An independent financial advisor can either be a person or a firm. This entity is a financial expert and provides advice, makes recommendations, prepares reports analyzing your investments, and charges a sum for the same. An independent financial advisor can not only help you with investment advice, but also help you with your finances in general.

Why Do You Need An Independent Advisor?

Here are the key reasons why you should seek help from an independent advisor rather than going the DIY way.

  • Financial matters are complex, intricate, and sometimes hard to comprehend.

  • There are often multiple ways of solving a financial problem. Without adequate expertise, it is difficult to ascertain which one suits your goals and needs the best.

  • Financial matters are inter-linked and not independent of each other. If you move money from one investment to the other, it affects both investments and possibly more. The stakes are quite high.

  • Financial products often have hidden costs which you may not know about.

  • There are a lot of terms and conditions involved in financial products and it takes an expert to read the fine print.

  • You might not be acquainted enough with market trends which are important to know for any financial decision.

Also Read How To Choose Best Financial Advisor?

Importance Of An Independent Financial Advisor

Here are the ways in which an independent advisor can add value to your financial life.

  • Expertise

    No matter the complexity of your financial needs and goals, an independent advisor can help you with a customized game plan that covers the big picture while also focusing on the details. Some advisors even focus on specific investment strategies, some others offer comprehensive services. They can help you with everything from investment advice to estate plans, tax saving, charitable donations, inheritance, and securities. They also have contacts with intermediaries and can prepare customized schemes for you.

  • Create And Pursue Goals

    You have financial goals of your own, which the advisor will help you plan for and achieve. But the essential goal of an advisor is to set your finances in order. Once they do that, you might even form newer goals, higher goals and set out to pursue them with the assurance of credible financial advice to back you up. Plus, they will guide you through every step of the way.

  • Trustworthy Advice

    When you buy a fund from a particular fund house, they allot you a fund manager who can help you with your portfolio and act as financial advisor. However, persons like these are working for a financial company with their own interests. Independent advisors, on the other hand, do not work for any investment brand or company. Their sole duty is to help you make better financial decisions, which is the only thing that you need from a financial advisor. You can trust their advice as it is only in your best interests.

  • Accountability

    In order to serve clients better, independent advisors often try to create a personal bond with them. This also helps them understand your needs and life goals better. Since they are entrepreneurial and dedicated to the betterment of your portfolio, their level of accountability is high.

  • Transparency

    Generally, independent advisors work on a fee-based pricing model. It is simple, it is transparent, and it helps in the growth of your assets. With this model, you can be assured that their business does well when you do well. Hence, there is transparency between the two parties with regard to money and services.

  • Convenience

    Once you hire a financial advisor, you don’t need to manage your own portfolio. Their investment advice will put you on auto-transact mode wherein you just follow their recommendations and take actions. The same goes for other financial matters as well. This would save you a lot of time, energy, and effort. Instead of constantly being on top of your investments, now you just have to be in touch with your advisor to ensure that you’re on track.


It is thus clear that the role of an independent financial advisor goes beyond just financial advice, it is to keep you financially healthy on an overall basis. So, if you’re planning to embark upon newer, bigger financial goals, you could very well do with a good advisor. You can also consider going to reputed and trustworthy firms such as IIFL or their sub-brokers.

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