Less is More!!
In the series of “Less is More” Today we will discuss “More Advisors”
Greed and Fear are at peak for most Investors during her investment journey! It is usually found, the most, with HNIs and retails investors(thumps up). Ultra HNI and HNI feels they can outsmart the market and retail investors are figuring out ride to riches and luck. Mass affluent Investors (not HNI nor retail) are the one’s who are usually goal oriented and satisfied with the market returns and steady path.
I will take liberty to expand the meaning of the Advisor. Anybody who is not or less competent to advise but you still follow that person and act on his advise is an Advisor for you. Agree??
Who are these so called advisors? Your friends, colleagues, stock broker, relatives, random unknown person. Before you follow them, just ask yourself – What is at stake for them in advising you? Nothing😊. You are putting your hard earn money at stake with his advise.
Let’s examine the other advisors who are into it as full time activity. These are Wealth Managers from Banks, NBFCs and broking firms and there are individuals who are into MF, Insurance, FDs Bonds etc sales. Most Individual advisors suffer from lack of knowledge and expertise in advising and asset allocating therefore end up providing irrelevant or not so good advise. The Wealth Managers from Banks, NBFCs and Broking firms are different!! They have different objective than your’s. They seek to achieve their targets, Bonuses and Income so their advise may not be suitable for you. Do not wish to elaborate it as most you know about experiences with these Wealth Managers.
Glaring difference between the Individual Advisor and Wealth Managers are as follows:
1) Individual Advisors are likely to be relationship centric rather than revenue centric(short term Self goals)
2) Wealth Managers may be great in content (Intellect, research, tools etc) but they seldom have Intent(willingness to help you achieve your Goal instead of self goal)
3) Continuity of relationship with same person is usually not found with these Institutionalised Wealth Mangers. They keep changing jobs etc.
4) Wealth Managers usually talk about the returns and under play risks.
5) Wealth Managers can’t remain agnostic to product or manufacturers.
Too many advisor for you would mean many cook in kitchen!! Dispair of many advisors are -- more confusion than real diverse view, many agenda and chaos, most often than not. Its observed that investors with many advisors are more confused rather than clear and tend to short change their investments basis multiple and diverse advise😊. Besides, better risk adjuested return, Investor seeks peace of mind and consistency of views, which is usually missing with many minds at work👍 .
Smart and successful Investors have one PRINCIPAL advisor who handles the maximum Investments, who helps investors in rejecting many investment ideas and chose the right one (Needless to say own wisdom will be a great boon)!! Princiapl advisor will be able to provide you outlook on various asset classes, post which you can deal with product’s advisor i.e. Insurance agent, Real estate agent etc.
You need one advisor for 1 product who is subject matter expert. What I mean by product is -- Real estate, Equity broking (should you at all be in stock investing), Mutual Fund and Insurance. Its important to deal with subject matter expert who can have detailed analysis of the offering. Principal advisor can give you broader picture, perspective and guidance and product advisor will help in selecting right product.
We at Wealthcare Investments share broader perspective of all asset classes with clients and also help them chose right products. Some engaging clients do seek and appreciate but few don’t bother to discuss!! We have shared with most of you since last 10 yrs 1) That Real estate is unlikely to give returns 2) When there were Tax free Bonds available in primary market, we made clients to invest in them.3) We were negative on equity since 2018 and quickly booked profits of Small & Midcap funds and got into Asset allocation funds etc. 4) Since 2017 we have mentioned about bullish outlook on gold – Today gold has moved from approx. 27000 per 10 gms to 41000.
As an Investor, you must look for advisor who has rare combination of Intent and content both. If you find an advisor like that, you only need one advisor!!
If you need to know how to grow your money slowly but surely, feel free to contact me. I am available at 9833778887 or wealthcarein@gmail.com
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Author –
Bhavesh D Damania
Founder - Wealthcare Investments
EduPrenuer, TV show panellist and Blogger
"Risk comes until you know what, where and why you are Investing"
Disclaimer: We respect all individual approaches. Sole objective of this series is to burst a few myth in Investing. There could be genuine reason/experiences and “less is more” may not be appropriate. Investor must consult own advisor to figure out right approach before adopting any of these suggestions.
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