10 Simple Steps For Choosing Best Stock Advisor For You
Sep 07, 2018 | 19:14 PM IST
Sep 07, 2018 | 19:14 PM IST
Looking for maximum value from your investment? Of course, you are. But the critical question is - are you making the smart choices to achieve your financial goals? Your money and time are extremely important. Thus start becoming a smarter investor. Hire a SEBI registered Research Analyst or a stock advisor for you.
This way for a small fee, you can save your time and be assured of profits that are much higher than what you would get from fixed deposits, gold, real estate or other such traditional forms of investment. While there are way too many advantages and a few cons of hiring a stock market advisory services. Here are 10 tips to ensure that you select the best stock advisor.
While there are way too many advantages and a few cons of hiring a stock advisory. Here are 10 tips to ensure that you select the best.
1. SEBI Registered Stock Advisory Company
SEBI (Security Exchange Board of India) is the apex authority which governs the Indian stock market. All the investment advisors are expected to be registered with them. It is the most basic aspect to look for. The SEBI registration assures you the authenticity of the advisor as well as provides you with the rights to raise a voice if anything goes wrong with your investment due to the advisor. Also, only SEBI Registered Investment Advisory Company is authorized to provide stock tips, share market tips and other advisory services.
2. Be Aware if You Hear 100% Accuracy or Sureshot Tips
The next thing is to check the accuracy of the stock advisory. It is the biggest trap in which many investors step into by looking at the great accuracy advertised by various research analysts and stock advisories. Be a prudent investor, have clarity about the accuracy that the stock advisor provided on their previous stock tips. This won't be an indicator of the future performance for you but can at least can throw some light on the research capabilities of the stock advisor.
The second important thing is if an advisor tells you that he will be providing you with the 100% accuracy then be aware, you need to check the authenticity of this. Because no stock advisor can guarantee you 100% accuracy. Stock prices are completely dependant upon the market so one needs to be very careful about it and should thoroughly verify all such information.
3. Without Performance Guarantee, The Promise is Just a Promise
The payment condition is one another aspect one need to check while selecting the stock advisor. Almost all the advisor have the fee-based payment conditions for the investors. But what is more important while looking at the payment condition is the promise or the way how your stock advisor is charging you for the service. For instance, If your stock advisor promises you a performance guarantee of the service with the specific returns and at the end of the tenure of service he is unable to make it then what's his call on it. Does he takes the responsibility for the performance or just want you to pay for the service. The dedication and importance to you as a customer is something you should understand while checking the payment condition.
4. Authentic Research Framework is a Must
The stock advisor is the person who provides you the best stock tips which are best suited to your portfolio. But he should also provide you with the proper investment rationale behind the call. The authenticity of the research framework can be easily checked. The research thesis or report which suggests the investment rationale behind the stock tip should be written and approved by the authentic SEBI certified research analyst. A SEBI certified analyst is the only person who is allowed to write the research ideas, as well as the firm which has, is licensed to carry research is also a key aspect which can suggest you the authenticity of the investment ideas provided as well as research framework deployed by your stock advisor.
5. Stock Market Advisor Service Should Help You Reduce Work Distraction
In the initial phases of availing the stock market advisory service and hiring the SEBI registered investment advisor for you is checking the level of flexibility that he/she is at your level. There are some advisors who expect you to be online and available all the time. This is something which will not bode well for you, especially if you are a busy professional or a businessman since your basic motto behind hiring an investment advisor would fail.
Niveza is also a SEBI registered stock advisor and offers utmost levels of flexibility to you with our flagship product P360 . Dedicated & free dealer assigned to you execute trades related to research calls while you focus on your daytime work. A dealer also ensures that you get best possible returns by optimizing entry and exit prices.
6. Higher Brokerage May Be Hurting You More Than Stock Advisor Fees
Price of the service plays a key role in the decision making for anyone. Even in simple things, we tend to pick up things which are priced at lower levels. Yes, it's very important to look at the price of the service but in many cases, the price can be a determinant of the quality. So if you are choosing the stock advisory service by looking only at its price and ignoring other aspects then there is a possibility that you may end up with a huge disappointment, so be wise while taking the decision of availing share market advice just by looking at the lower price or fees.
One more thing in the similar aspect which we fail to look into is the brokerage. This may happen that you may subscribe the service looking at the lower price but the churning of the portfolio may put a pressure of brokerage on your portfolio. It doesnt make sense that you are saving money in fees and bearing it through the brokerage. The high brokerage can impact your net returns your portfolio.
7. Check The Credibility With Your References
Whenever you want to buy a new product like a mobile phone, television set etc, the first thing you do is ask your friends/ neighbors or people you might know. Do the same for the stock advisor as well, after all, it's your own hard-earned money on the line. Always do a reference check before choosing the stock advisor.
8. Stock Market Advisor Should Be Accessible
Customer service is one of the key aspects to check while selecting the stock advisor. The customer service reflects the approach of the stock advisor towards its clients. Customer service can be easily determined by two ways one is accessibility which advisor is providing and second is the timely and quick resolution of your queries.
A dedicated relationship manager is an answer to this. A dedicated relationship manager for you would be a good gesture from stock advisor's end for you. The dedicated relationship manager exclusively helps you and assists you whenever you need any help. So to check the customer service instead of just calling to the customer care and having a sweet talks with no resolution just check, if the stock advisor is appointing you a dedicated relationship manager who will just be providing you all the details at regular intervals as well as accessible to you easily whenever you are in critical situation.
9. More Experience Is Always Preferable
If you had to undergo a surgery you would choose someone who has years of experience over a doctor whos fresh out of college. Similarly, the experience of a stock advisor or the stock advisory company can prove to be very advantageous.
10. Always Check The Reviews of The Stock Market Advisor
After checking all the above aspects at last one should always check the reviews of the existing clients of the stock advisor. These reviews can be very helpful to know the quality of the service of the advisory.
The right stock advisor can add great value to your portfolio. They will assist you in picking the best stocks at the right time as well as exiting those stocks at the right time too.
So choosing the best stock advisory is a significant job for any investors and we don't want you to pick a wrong advisor for your investment. You can call us on 09637171436 if you would like to know more on how we could significantly boost your portfolio.