How to Start an Investment Business

Do you want to capitalize on the investment opportunities to make your financial dreams a reality? Do you want to achieve financial freedom while helping others realize their investment objectives?

If yes, look no further. We have just the tips to set you on the path of setting up a happening and successful investment business.

Here are a few pointers to becoming a successful financial advisor:

  • Financial acumen: Becoming a financial advisor is all about giving wealth management advice to clients. This is possible only when you have not only basic or adequate, but expert knowledge of financial markets, products, opportunities and movements. An in-depth knowledge of the overall economic climate of the country is also essential as it determines the ability to anticipate changes in financial opportunities and advise clients accordingly. Financial advisors typically offer products like mutual funds, insurance, direct equities etc. Depending on the risk appetite of the client, they offer tailor made solutions to optimize the client’s financial objectives.
  • Understanding the client: The financial advisor is expected to customize solutions best suited to the client’s needs. Obviously the financial advisor should have good interpersonal and listening skills to gauge the current financial state as well as financial objectives of the client.
  • Integrity: The client entrusts the financial advisor with details of his/her wealth and the financial advisor has to maintain the trust of the client through professional conduct and sound financial advice. Confidentiality is the name of the game as without this, it is impossible to maintain professionalism in this line of business.
  • Marketing: Effective marketing is essential to gain clients and new business. Many financial advisors address seminars, conduct road shows, speak at business institutions to showcase their financial skills. This helps them to connect with potential clients and increase business.
  • Updating the client: Most financial advisors make it a point to meet or at least call their clients periodically, to update them of new opportunities available in the market. This helps in course correction as well as capitalizing on new opportunities. In any case, it also assures the client that the financial advisor cares and is on the job to increase their returns as per their financial goals.
  • High- end portfolio management: Some financial advisors take on the role of portfolio managers or wealth managers for very wealthy clients. While mutual funds and banks have dedicated investment managers to take on PMS (portfolio management service) clients, some large ticket clients also employ single fund managers as their wealth manager for a fee. PMS wealth managers need to have great sophistication in their financial approach and acumen as the amounts entrusted to their care are enormous and where any mistake could be catastrophic. While returns are huge in a good PMS market, there is really very little margin for error in PMS business. PMS fund managers generally have a few customers, as they need to focus on the specific needs and directions of their wealthy clients and ensure that returns are maximized and risk is minimized.

So if you have what it takes to be a financial advisor, be assured that there is hardly any other profession that can maximize your wealth and afford great professional satisfaction.

1 Comment

  • CATH said on August 3, 2012
    Cape Coast, Ayikoayikoo Flats, Sarbah Rd. tel:0272840465. how do i go about starting this beading business. I make beaded accessories in small amounts but I now want to expand my business. Please help me.


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