You already know that stocks provide better returns than any other investment class. Now that you have finally decided to start investing in stocks, however, selecting the right stock to do such investments is still outside of your expertise area. For first-time investors, investing in the stock market is quite difficult. It is because they are aware of the importance of investing in stocks but do not hold sufficient knowledge to do so on their own. Young professionals are occupied by their jobs and other professional activities that they barely get the time to do their research, check the P/E ratios and do other things. This is why it is important to have specialized service providers in your arsenal. So that, you can capitalize on every opportunity that arrives.
Choosing the best stock advisor that understands your financial goals, time horizon, and mode of investment can make it easier for you to make investments that help you achieve your financial goals and accumulate wealth. But, believe me, even choosing the best stock advisory services is not something to be taken lightly. There are a lot of advisors out there, with so many giving advice to invest in stocks. With the large promotion and abundance of information on the web online, it is quite tedious to find the one that suits your investment needs.
Therefore, we are here to assist you in making the right decision in selecting the stock advisor that makes the right investment decisions on your behalf.
5 Tips to Select Best Stock Advisor in India
SEBI-registered Stock Advisory
The success of your financial goals largely depends on the experience and expertise provided by the stock advisory service provider. But it is somehow ignored when the commission is being involved. Therefore, you must select the right firm. Selecting a SEBI-registered stock advisory firm can safeguard your investments. SEBI (Securities and Exchange Board of India) is the apex authority and market regulator in India, which governs the Indian stock market. You can say it is the first and most important aspect that you must look for. A SEBI-registered company is authorized to provide stock tips and other advisory services. It is not much hard to look out for SEBI-registered advisory companies online. While you are at it, make sure the SEBI-registered stock advisory firm or advisor has a proven track record and is trusted by other investors.
Do Not Fall for the ‘100% Accuracy’ Trap
You must have heard of 100% accuracy calls and guaranteed profit calls many items. This is something that you must avoid at any cost. Many advisors advertised of great accuracy and misguide investors. Do not fall for such traps. Remember, no one literally “no one” can predict the stock market. With the volatility in the market, there is no guarantee that you will surely make profits. So, if anyone promises you 100% accuracy, just avoid it. As an investor, always be prudent of your investments, advisory calls, and so on. Always do thorough research before investing.
Assess the Advisor’s Fees
Almost all stock advisors or advisory firms have a fee-based payment model for the investors. Some advisory firms charge more, some less. It has often been seen that we go after the things that are quite expensive than others. It is because we believe that expensiveness is the determinant of quality. When selecting an advisory firm or stock advisor, we would recommend you not to do that. As paying high commission may eat your potential profits. So, no matter how good the advisory firm is, if you cannot save enough profits to achieve your defined goals, you would require more time to achieve your targets and accumulate wealth. This is why it is one of the major factors that you must consider when assessing a stock advisory firm. Select one that comes under your budget and provide all the necessary features that you seeking.
Accessibility
Customer support is one of the most important aspects to look for while selecting the stock advisory service. It reflects the approach of the stock advisor towards its customers. In the stock market, a second can play a significant role for an investor. A profiting trade can turn into a losing trade, in just mere seconds. This is why it is important to check how accessible your future stock advisor is. How dedicated the stock advisor is to assist you whenever you need help. Check with the advisory services whether the firm will assign you a special point of contact (Relationship Manager) who will provide you with the crucial details and easily accessible in crucial situations.
Check for Reviews
Last but not least, always check for reviews and testimonials of previous or existing investors who are opted for the advisory services of the firm you plan to choose. Checking for reviews can ensure the quality of the services providing by the advisory firm.
Conclusion:
Choosing the best stock advisory services is an important job for investors. And, we do not want you to make an uninformed and “wrong” decision. The right stock advisor can provide great value to your investment portfolio and help you accumulate wealth. Not only they will help you select the right stock but also provide you guidance with exiting the stock at the right time.
This is one relationship that can achieve your dreams and life goals. So, “Choose Wisely!”
