Dubai is a thriving financial hub budding with a multitude of investment consultants. However, choosing the right one is crucial for building a great investment portfolio.
In this article, we will discuss factors to consider while selecting an investment consultant in the city of opportunities.
In order to accumulate significant funds, it is important to create a great financial portfolio. While there are informed investors who don’t require any assistance when making an investment plan, the majority need investment consultants to help them build a financial portfolio.
As many individuals lack financial knowledge, it is wise to get assistance from a financial investment consultant for making investment decisions. However, selecting the right investment consultant is very important. Here are a few things that individuals should keep in mind while selecting an investment consultant-
Check the Reputation of the Investment Consultant
One of the first things to consider is the reputation of the investment consultant. The investment advisory firm must have sufficient knowledge about the investment options that can provide its customers with good profits. People should check the experience of the investment consultant. They should also know the achievements of investment consultants.
Dubai houses several global and locally based consultancy firms offering valued services. Mostly, residents prefer firms governed and regulated by The Securities Commodities Authority (SCA) of UAE. This makes a company more liable to norms and is hence considered more reliable.
Check the Fees of Investment Consultants
There are two ways that investment consultants levy charges- commissions and fees. Generally, many people don’t trust commission-based advice given by the consultants as they get paid for selling a product. However, when a fee-based investment consultancy firm is selected, they don’t receive a commission for selling a product. Hence, with fee-based consultants, customers might get better advice while making investment decisions. Also, it is important to check the fees levied as these charges vary between companies.
Understand the Investment Product Charges
Apart from charges levied by the investment advisory firm, there are charges that investors might have to pay for using a product. Furthermore, there might be charges on the underlying funds. There are various products, such as insurance plans, that can be very expensive. These plans can reduce the gains.
Understand the Investment Advisory Process
The process of investment advisory can have these steps-
- The investment consultant will understand the investor’s goals, risk appetite, etc.
- Based on the investor’s objective, the consultancy firm will look for the right investment instruments.
- After that, the customer will be provided with a financial report and the best investment instruments for him/her.
- The investment can start once the customer thinks the investment instruments are right for him/her.
Customers should ensure that the financial advice offers them all the answers. They should stay away from investment consultants who try to sell them products without providing any information.
-
Set a Meeting
Once a financial advisory consultant is selected, the customer should set a meeting with the firm. In the meeting, the customer can ask important questions to the consultant. The investor can also understand how often he/she needs to review the financial plan.
In conclusion, keep the points in mind while selecting an investment consultant.
