PERSONALISE YOUR FINANCE

One of the best ways to get your financial affairs in order is to consult with a financial planner—someone who can answer questions about your specific goals and individual situation and guide you towards covering all your bases (from budgeting to saving enough for emergencies to consolidating student loans or planning properly for retirement).

Its turning very important to understand the need of getting an expert advise but the fact arises that we also need to make sure that we are not being imposed schemes that do not suit our financial goals. It happens that many a times based on the commission being received by the financial adviser they tend to push schemes or plans a portfolio for you which might be more of high risk asset class and is not balanced.

Many financial advisers encourage investors to chase returns and to invest in expensive actively managed funds. Advisers were much more likely to recommend actively managed mutual funds. The frequency of recommendations for actively managed funds combined with recurrent downplaying of fees helps conclude that advisers recommend the more expensive funds because it puts more money in their own pockets.

3 Tips:

1) Understand if your financial adviser is being pushy about a particular scheme.
2) Its a red flag when a product is recommended before your entire financial situation is known.
3) Beware if investment recommendations are made before quantifying how much is "Enough" to save.