What is Investment Advice?
Investment advice is when guidance, counseling or direction is given to an client in order to help them make an informed decision regarding some type of investment vehicle. This involves taking into account our client’s financial needs and current financial position. A client may not be aware of certain investment vehicles that will suit their financial goals perfectly. The opposite could also be true. A client may be unaware that their current investment vehicle is not suited for their financial goals or current financial position. That is why receiving Investment Advice can be very important.
What does Investment advice entail?
Investment advice is something that takes quite a bit of information from both the client and the investment vehicles in order to find a suitable match. There may be many issues that affect whether or not a certain investment vehicle is correct for a certain client. Some examples may be:
- Investment Minimums
- Client’s current financial position
- Amount of time client wishes to hold an Investment vehicle
- Type of returns the client is seeking
- Risk tolerance
- Investments that interest the client
- Amount of fees, if any
A client could have a variety of reasons that would make certain investment vehicles viable or unviable for a client’s financial goals and current financial position. This is why it is imperative to develop both an understanding of the client’s needs and of the many investment vehicles that are available in today’s markets.
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