Investment advisors- An introduction.

Hi there,

As an investment professional, I can confirm that most members of the public have roughly zero investment skill. This is not meant to be derogatory, just realistic. However, most members of the public also seem to think that investment is or should be ‘easy’ and as a skill has very little value added. If only it were so.

The reality is that most people have limited financial skills because these things take effort, study and thought. In our time away from an occupation, we want to relax, not analyse annual reports. But to be successful, we need to see a lot of annual reports before we find the one we really like. This is a real chore.

The ability to trade online through laptops and mobile phones has made share market even more available to investors and it has definitely expanded the number of trades being made, which brokers and stock exchanges  around the world must be grateful for; but all of these facilities has not made us better investors. As long as the investor does not have the required skills to flourish, he needs an investment advisor that offers research and guidance.

Should an investor with very limited funds be investing in the markets? If yes, what should his approach be? What should be the approach of an investor who has a huge chunk of money to invest? Should he hedge his investments in the derivatives market? If an investment is made that proves to be shockingly poor, and loses eighty or ninety percent of the money invested, it was a bad deal , right? If an advisor had pointed out just how risky the deal was, might the investment funds have been saved? Would that have been money better spent than saved? If an extra thirty or fifty rupees spent on advice from an investment advisor could have saved one thousand, might that not be an acceptable price to pay?

The above thoughts clearly bring into focus the need of an investment advisor.

More about investment advisors and portfolio management in our next lesson.

You may like these posts:

  1. Introduction to financial statements
  2. Understanding Annual reports.
  3. What are the stages in investment process?

4 Responses to “Investment advisors- An introduction.”

Vikas Medhekar

May 27, 2011 at 7:54 pm

I like your articles and the way you present the information. I’m a beginner in the share market getting valuable information from your articles.

I just finished the Second Year of Bachelor of Commerce, and am interested in making my career in share markets. I’m little confused about that. I planned to do MBA in Finance, if I found I have enough money for that.

What are the career opportunities in the share market? To become an Investment Professional, which share market related courses do I need to complete? Can you please guide me in details about various career opportunities in the share market?

Thanks in advance.


September 20, 2011 at 11:55 pm

Unbeilevalbe how well-written and informative this was.


September 21, 2011 at 11:01 pm

I thank you for sharing your wisdom


January 15, 2014 at 8:42 pm


Somehow I landed up to ur site n found it useful. I want to buy n hold shares. My age is 29 yrs. can u advise me some shares. N if u charge for this please let me know so that I can avail it.


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