Comprehensive Guide: Understanding Your Financial Advisor Relationship
3 Minutes
November 1, 2023
As a High-Net-Worth Individual (HNI), your financial journey is as unique as your fingerprint
and the stakes are high. Managing considerable wealth demands more than just financial
understanding; it requires a seasoned investment advisor who can guide you through the
challenges of private wealth management with finesse.
A financial investment advisor is a savvy guide in an intricate financial journey. With
their help, not only can you attain financial stability and growth, but also take the
requisite measures towards creating a financial legacy that lasts. So, they are the ones who
can help you make better decisions in line with your goals and aspirations.
On your behalf, they take the necessary steps to figure out complexities and work on them to
ensure your wealth journey is smooth. From managing risks to investing smartly, they are
your reliable financial partners. Here in this comprehensive guide covered are the nuances
of your relationship as an HNI with a financial investment advisor.
What is investment advisory account and services?
Investment advisory accounts and services meet the unique needs of HNIs by offering a
customised and strategic approach to managing wealth. Essentially, these accounts are
managed by financial experts often known as investment advisors who work closely with HNIs to
understand their financial aspirations and goals, investment objectives, and risk appetite
level. The financial advisors then prepare a tailored strategy, considering such parameters,
to optimise your portfolio across distinct asset classes.
A crucial constituent of investment advisory services is the provision of brokerage
services. Brokerage refers to the execution of trades in financial markets. Typically, you
incur costs called brokerage fees for selling and purchasing securities. The inclusion of
brokerage services into investment advisory accounts forms a comprehensive pack, helping you
lower your overall trading expense, which thereby enhances the efficiency of your investment
strategy.
How are you charged for investment advisory accounts?
Understanding the cost structure is essential. Investment advisory services generally include a fee-based model, ensuring alignment of interests and transparency. It is essential to discuss and comprehend such charges with your advisor. Doing so ensures a clear understanding of the value you receive in return.
What is your financial advisor’s role when handling an investment advisory account?
A financial advisor is not just an investment facilitator but a strategic partner in your financial journey. They perform in-depth research, review market trends, and personalise investment strategies to match your unique circumstances. From designing a risk-appropriate portfolio to aligning with your Investment Policy Statement (IPS), the financial advisor’s role is multifaceted. Periodic portfolio assessment and monitoring ensure your investments remain on course, adapting to your financial environment.
Ending note
When it comes to wealth management, particularly if you are an HNI, selecting the correct
financial advisor is essential. Kotak Private offers a tailored and comprehensive approach
and can be a reliable partner in your financial journey. With best-in-class product suites,
coupled with an experienced research team, and a commitment to delivering superior
risk-adjusted returns throughout asset classes, Kotak Private stands as an excellent choice
if you are looking for effective and personalised wealth management solutions.
Zeroing in on the right private wealth management service allows
you to create a portfolio that not only preserves your wealth but also grows it in
accordance with your financial goals. The investment advisory services’ diligent
adherence to IPS and constant portfolio assessment and monitoring can make them a
trustworthy partner in your wealth generation and preservation journey.
This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. The Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Article. The information contained in this Article is sourced from empanelled external experts for the benefit of the customers and it does not constitute legal advice from the Bank. The Bank, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.
