MALAYSIA - Yes, I would like to invest ...but with whom? These are common yet pertinent questions we constantly hear. Investors are spoilt for choice with myriads of asset classes offered by asset management companies to cater to most risk appetites. They are equally spoilt for choice with many financial consultants calling on them or being referred to them. Who should they choose?
A good financial consultant is like the alpha of a fund. The success of a portfolio is not just dependent on the managers of the underlying assets but also how well the consultant manages your portfolio, of course with the cooperation of the investor to implement strategies when ever required.
So, what factors are critical in choosing my consultant?
NEVER JUDGE A BOOK BY ITS COVER
Consultants who are decked top to toe in designer wear only tell you that their personal inflation is very high. It does not necessarily mean they can manage your financial portfolio well or they are successful.
A good consultant should be able to address your concerns and needs effectively. Financial products are used as vehicles to meet your financial goals.
Your consultant should never be product pushers.
THINGS THAT SOUND TOO GOOD TO BE TRUE GENERALLY ARE.
Beware of consultants who promise or guarantee high returns in very short periods of time. Always check with the consultant where his or her source of data presented to you.
A good financial consultant cannot make their investors very rich but he or she can, however, help investors to stretch their ringgit over a longer period of time.
DO NOT GET CAUGHT UP IN THE EUPHORIA OF YOUR ENVIRONMENT.
Always take a step back before you get your feet wet.
Qualify your consultant just as the consultant is qualifying you.Check their certifications,licences,training and experience. When in doubt, call the customer service number on the consultant's business card or check online if he is registered with the relevant licencing authorities.
Look for consultants who love what they do. They have pride in their work and the integrity needed to be a good financial advisor to you.You generally cannot hide or disguise passion.