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Why a Financial Advisory Firm Is important to Handhold and Guide You for Equity Investments?

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Why a Financial Advisory Firm is Important ?
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A financial advisory service is a professional investment advisory service that helps investors to choose the right investment options for maximizing wealth creation while minimizing the risk involved.

Everybody knows that Sachin Tendulkar is a master batsman. But do you know it was his coach, Ramakant Achrekar who molded Sachin Tendulkar into a top-class batsman? Similarly, the lady’s world no 1 in badminton, P.V Sindhu became a world champion due to the intense coaching and efforts of her coach Pullela Gopichand.

Irrespective of the fact that whether it is investing or sports, nobody can dispute the fact that expert advice makes a huge difference. Yet many people feel they can manage on their own. The result however could be disastrous.

Just like what happened with Rajesh, a first-time investor. Eager to enter the world of stock market investing, after receiving his first paycheck, Rajesh started following online blogs on investing and watching business news channels. With few of his initial trades becoming profitable Rajesh was convinced that he had mastered the stock market. Rajesh believed using the services of financial advisory services in India as a waste of money.

He would blindly invest on the basis of tips provided on business news channels, without understanding the fundamentals of those companies he was investing in. When the stock market corrected in the second of 2018 post the IL&FS saga, Rajesh’s portfolio also crashed by more than 60%.  Inspite of waiting for months and despite the fact that the market hit new highs post-election results, Rajesh’s portfolio never recovered as all those high momentum stocks he had purchased had lost their steam.

It was then, that Rajesh realized his folly of hap-hazard investing. Rajesh decided to salvage whatever was left of his portfolio and start again with the help of financial advisory service. Today his portfolio is doing reasonably well and he is determined to stay invested for long term as all the stocks recommended by the financial advisory service are good quality stocks with strong fundamentals.

Stock market investment is a very complex process. There are multiple entities out there such mutual fund houses, pension funds and institutional investors with high speed computers and algorithms which buy and sell stocks at the speed of lightning. In such a scenario, it often becomes difficult for the retail investor to compete against them.

Besides this there are many external factors such as economic conditions, political stability, and oil prices etc. which can impact stock markets and stock prices.

Get the professional edge with financial advisory services in India

It is very difficult for a retail investor to monitor and track all these events which impact stock markets and stock prices. On the other hand, a financial advisory service has its own research team who keep a constant track of all those factors which impact stock prices. Apart from the external factors they also keep a track of factors like earnings, growth, debt, scalability of operations of businesses. These are the important factors which determine the price of the stock in the long term. A novice investor neither has the time nor the expertise to do all this. In such circumstances, it is highly advisable for a retail investor to choose the professional advice of a financial advisory service.

Read more: About Research and Ranking

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