The key driver of the mutual fund industry are Individual Finance Advisors (IFAs). A diverse group spread across the country, with varying skill sets, knowledge, backgrounds, influences and models. Inspite of this diversity they come together towards one common goal i.e. the mutual fund industry and the ultimate commitment towards wealth building for their investors.
As I move towards my #education #campaign this January 2017 to train, upgrade, sharpen skills of these priceless IFAs (Individual Finance Advisors) across our country (in almost 40 cities), it becomes important to speak about IFAs and their investors – building wealth together.
IFAs aim at growth in mutual funds asset class through investment strategies for their investors. They focus on investment solutions for investors to help build & #compound #wealth in their wealth creation journey. And ultimately the financial goals of investors are met.
Long term investment planning through IFAs derives a positive experience to investors. This encourages the investor to stay invested further. This long term investment strategy proves beneficial not just to the investor but also to the IFAs and the asset managers (mutual fund businesses).
Along with investment strategy, products & performance, the critical aspects of risks management & disciplined investment processes are also governed by these IFAs for their investors.
- An IFA takes due responsibility to meet the financial goals of his/her investor.
- IFAs now-a-days share responsibility along with financial literacy trainers like me to keep their investors literate about their finances, it’s planning & processes.
- Building confidence & inspiring investors towards mutual funds asset class is a primary role played by IFAs. It’s important that an investor gets exposure to asset allocation process through IFAs and an important parameter i.e. mutual funds get covered in their wealth creation journey.
The finance industry is every evolving one and the current times are fast paced. IFAs and investors together have to cope up the changing models through: awareness, confidence building towards each other & experience.
A quick crisp guideline for IFAs and Investors as follows:
1) IFAs have to make the investor understand their capacity through risk profiles. Adequate knowledge & planning should be adhered to before deriving a financial plan.
2) IFAs should advise the investor depending upon their risk taking capacity, financial goals considering long term investment.
3) Asset allocation process should be adhered by IFAs giving due weightage to systematic investment plans for investors.
4) IFAs have to ensure that the investors don’t time the market. It’s important that they stay invested for a longer duration.
A journey of wealth creation for a longer time frame ensuring short-term & long-term financial goals can be made enriching experiences through transparent relationship between IFAs and Investors.
To know more email us at empower@empowereducation.in