Questions to ask an investment advisory firm

An investment advisory firm is a company that provides financial advice and services. The main objective of these firms is to help their clients in making the right decisions regarding investments. They provide various types of services such as portfolio management, asset allocation, risk analysis, tax planning, retirement planning, etc. These services are provided by both independent and affiliated firms. The following questions can be asked to an investment advisory firm to find out about its services.

1. What type of services do you offer?

This question will help you know what kind of services your potential advisor offers. You need to understand whether they specialize in one particular area or not. If they have a specialization then it would be better for you to choose them. Otherwise, if they don’t have any specialization then it would be difficult for you to make a choice. For example, if you want to invest in gold but they only provide mutual funds then you might consider another option.

2. How many years of experience does your firm have?

You need to know how experienced your adviser is. It helps you to determine whether he/she has enough knowledge about investing. A good adviser should have at least 10-15 years of experience. However, some firms may claim to have more than 15 years of experience even though they haven’t been operating for so long. Therefore, it is always advisable to check with other sources before hiring an adviser. For example, if you visit you will be able to see the number of years the firm has been operational. This will enable you to compare the information given on their website with the information provided by your prospective advisor.

3. Do you charge a fee for providing your service?

You must be aware of the fact that most advisers charge a fee from their clients. This fee varies depending on the size of your account. Some firms charge a flat rate while others charge per transaction. So, you need to know this information. Also, you must compare different fees charged by different firms. This will enable you to get the best deal possible.

4. Are there any risks involved in working with you?

When you hire an adviser, you must ensure that you take all the necessary precautions. One of the major risks associated with working with an adviser is fraud. Fraudsters often target people who are new to investing. They lure them into signing contracts that allow them to manage their accounts. Once the client signs the contract, the adviser takes control over his/her money.

Bottom line

If you are looking for an investment adviser, then you must first decide which type of services you require. After doing this, you must look for the appropriate firm. Then, you should ask them the above-mentioned questions to evaluate their performance.