Why a financial advisor is more important than ever!
History informs us that stocks tend to outperform all investment classes over the long term. But while report returns from equities and equity mutual funds stay unique, the unfortunate truth is that few investors end up reaping their rewards to the greatest possible extent. More often than not, the cause for this contradiction between published and actual rescues is the absence of support from a qualified, competent, and unconflicted Financial Advisor working on your behalf.
The need for help from a Financial Advisor becomes all the more enunciated during times like these. Gripped with COVID-19-induced panic, markets have turned fiercely volatile - and most portfolio values have fallen deep into the red. Even the haven of debt funds has proved fickle. As an investor, your mind will undoubtedly be turning with a hundred queries. Should you stay invested or redeem? Should you switch your money to less risky investments or switch your money to more risky assets? Will markets restart to drop further? Should you stop your SIPs and resume them at a more opportune time? And, so on and so forth. In testing times like these, a financial consultant Kochi can help you stay on the straight and narrow path to wealth creation. Here’s how.
Saves you from Yourself
Guess who your toughest adversary is when it comes to making money from your investments? The answer is, of course, you! Even the most seasoned investors fall prey to greed, anxiety, and a slew of other behavioral traps when markets bounce between the depths of pessimism and the heady heights of exhilaration. Seasoned Advisors may help you avoid unpleasant investing mistakes like bailing out at market bottoms or piling on assets at market tops by drawing on their knowledge from previous market cycles.
Steers you clear of Avoidable Investments
A bad investment is constantly lurking around the corner, which is a terrible reality. From the ULIP scandal of the 2000s to the YES Bank AT-1 bond write-off disaster this year, investors are frequently led astray by marketers posing as Financial Planners. Having a trustworthy Financial Advisor who can sift through the tiny print on your behalf may be a wonderful source of strength for you, as you'll be able to avoid becoming trapped into bad investments that can wind up damaging a large portion of your hard-earned money over time.
Helps you see the Bigger Picture
A Financial Advisor can help you see the big picture with your investments by aligning them with your long-term and short-term goals. Your Advisor may guarantee that your investments are fully matched to the tenor of your goals by ensuring that you invest according to a pre-defined roadmap with pre-defined time-bound landmarks; hence, only long-term capital flows into higher-risk investments. As a consequence, you'll be far more resistant to market ups and downs since your investment viewpoint will be substantially and positively transformed.
Helps you pick the right investments
When left to their own devices, most investors choose assets based on short-term previous performance. This myopic propensity, however, is the polar opposite of ideal, because what goes up must come down - and vice versa! A Financial Advisor can guarantee that you choose the proper assets for your portfolio by leaning on their experience and concrete research that is typically not available in the public domain. As a result, your Advisor ensures that your portfolio is dispersed among investments that are likely to excel in the future and provide you with outstanding risk-adjusted returns throughout your specified investment horizon.