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Who is a Financial Advisor?
A penny saved is a penny earned ~ Benjamin Franklin
In a career as financial advisor, he or she is defined as a person qualified in investment and finance, who helps individuals and corporations to meet their long-term financial goals. A Financial advisor will have to make investment plans for your clients keeping their goals in mind. He or she works over several factors like budgeting, investments, saving for retirement, tax planning, insurance coverage, and more. After consulting with their clients, he or she starts analyzing factors like their goals, risk tolerance, and life or corporate stages and identify a suitable class of investments for them.
Students can pursue BBA (Bachelor of Business Administration), MBA (Master of Business Administration) to become a financial advisor. Here in this article, we have mentioned the details of a career in financial advisor such as how to become a financial advisor, financial advisor vacancy, qualifications for financial advisor, financial advisor salary, role of financial advisor, financial advisor job description.
Financial Advisor in a Nutshell
A career as financial advisor is all about assessing one’s financial situation, understanding what one wants to do with his or her money, and helping in creating a plan to reach one’s financial objectives. An Individual who opts for a career as financial advisor helps individuals and corporations reduce spending, pay off their debt, and save and invest for the future. The financial advisor job description includes working closely with both individuals and corporations to help them attain their financial objectives.
Quick Facts for Financial Advisor
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Industry
Finance
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Average Salary in India
₹28750
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Suitable for
Male, Female
A Financial advisor career is open to everyone and is not gender-specific. A financial advisor might be men, women, and any other gender. It makes no difference what gender a person is if he or she wishes to pursue a job as a financial advisor. The work is gender-neutral. A career as financial advisor can be opted for by either men or women.
The occupation is suitable for anyone who is accountable enough to manage money, knowledgeable enough to navigate the stock market, and inquisitive enough to probe the root of the problem. It is necessary to integrate abilities, reasoning, and knowledge. A financial planner can be anyone with the right financial advisor qualifications and the drive to succeed in finance.
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Any special needs
Yes
Everyone, including those with physical disabilities, is appropriate for individuals who opt for a career as financial advisor. A career as financial advisor is well suited to everyone, even those with special needs. Finance is a field that promotes equality of opportunity for every human race. Anyone with special needs can also become a financial advisor. He or she is required to be skilled mentally, and hence people with physical disabilities can choose to be financial advisors as long as it does not affect the efficiency of work.
Table of Contents for Financial Advisor
What is the role of Financial Advisor?
Are you wondering what is the work of financial advisor? then in this section, we will discuss the role of financial advisor. A Personal financial advisor is a professional who helps people in maintaining their finances and projects. Individuals who opt for a career as financial advisor help in defining financial goals for the clients, for example when the clients will be using their savings and what they will be using it for.
The role of financial advisor is to make a plan in accordance with the client’s financial situation. He or she is required to know the personal as well as professional and financial information about their clients and further use this data to create projections and accomplish their client’s goals. The factors deciding these projections are realistic assumptions about inflation, investment returns, how much one can save, and how much one will earn and spend.
Below, we have mentioned how to become a financial advisor, the average financial advisor salary in India, financial advisor skills, financial advisor career options, and is financial advisor a good career.
Tax planning
Tax planning can take a number of different forms. Individuals who opt for a career as financial advisors often help individuals and corporations address certain tax issues and find a solution for how to maximize possible tax returns and minimize tax accountability. There are certain advisors who also help clients with preparing their taxes and completing their annual taxes.
Insurance
Individuals who opt for a career as financial advisors help individuals evaluate their insurance requirements. Some financial advisors have also licensed insurance agents and sell people insurance themselves. However, they typically earn a commission in such cases, which can create a conflict of interest.
Budgeting
This is perhaps the foundation of financial planning. Individuals who opt for a career as financial advisors make sure their client is spending the right amount of given income and is also required to make sure that they aren’t going into debt.
Investing
The role of financial advisor doesn’t include the actual management of one’s assets, individuals who opt for a career as financial advisor still help with an individual's investment portfolio by mapping out how much one should be investing in which types of investments.
Types of a Financial Advisor
Here, in this section, we have described various types of a financial advisor or careers related to it.
Financial analyst: Financial analysts examine financial data and use their findings to help companies or clients make business decisions. Often, the analysis is meant to inform the investing decisions of companies. Not all financial analysts analyze the stock or bond markets or help their employers make investments.
Financial Examiner: A financial examiner ensures that banks, securities firms, and other financial institutions comply with applicable laws and regulations. He or she is often employed by financial and insurance firms, as well as by federal and state government agencies. A financial examiner conducts complex finance examinations.
Accountant: An accountant is a professional who performs accounting functions such as audits or financial statement analysis. He or she can either be employed with an accounting firm or a large company with an internal accounting department, or one can set up an individual practice.
Economist: An economist is an expert who studies the relationship between a society's resources and its production or output. An economist is responsible to study societies ranging from small, local communities to entire nations and even the global economy. An economist is a very important entity for any firm or country to be able to manage their finances and growth.
Financial Planner: Individuals who opt for a career as financial planners can be defined as a person qualified in investment and finance, who help individuals and corporations meet their long-term financial goals. After consulting with their clients, they start analyzing factors like their goals, risk tolerance, and life or corporate stages and identify a suitable class of investments for them.
Investment Banker: Individuals who opt for a career as investment bankers are professionals who work as a part of a financial institution and are primarily connected to raising capital for corporations, governments, or other entities.
What is the workplace/work environment of Financial Advisor like?
For a person who is pursuing a career as financial advisor, one is required to have frequent contact with people on various levels of his or her organization. One typically works thirty-five to forty hours per week. However, individuals who opt for a career as financial advisor might be required to work extra hours during the months before taxes or annual reports are due.
Does Financial Advisor require travelling?
Likely
In financial advisor jobs, individuals are required to work for the government and need to travel quite often depending upon the project one has been assigned and the requirements he or she has to fulfill. However, complete travel expenses are provided by the government to the financial advisor travelling to different work locations.
Employment Shifts
Full Time, Work From Home
Individuals who opt for a career as financial advisors are generally required to work from 9 am to 5 pm full-time, five days a week. He or she typically works for 35-40 hours per week and is required to work from the organization’s premises.
Employment Nature
Contractual, Permanent
In a career as financial advisor, an individual works in a single shift and is required to fulfill the work in accordance with the time allotted. However, if a project requires it, he or she may be obliged to work under certain shifts. A financial advisor works on a permanent as well as a contractual basis.
Work Place
Office
Individuals who opt for a career as financial advisor is required to work in the office from the organization’s premises. He or she typically works for 35-45 hours per week. Depending on the targets approaching and projects allotted, he or she may be required to work overtime.
Presence in Geographical Area
Semi-urban, Urban
Individuals who opt for a career as financial advisors work in urban or semi-urban areas as the kind of companies or firms that hire a financial advisor are located in either urban or semi-urban geographical locations.
Time Pressure
Likely
Financial advisor jobs are time-bound, he or she has to constantly work in order to meet the deadlines. A financial works for several clients at the same time therefore, one has to manage the work accordingly.
Overtime Details
Depending on the workload and deadlines a financial advisor may have to work extra hours. It happens generally before the tax payments are due.
Weekly Hours of Work
Min 45 Hours
In career as financial advisor, individuals have to work for about eight to nine hours on a daily basis. He or she can either work for a company on a permanent basis or a client can also hire him or her on a contractual basis.
How to become a Financial Advisor?
Steps to become a Financial Advisor
Exploring a career as a Financial Advisor in India offers a gateway into the dynamic realm of finance while aiding individuals and businesses in achieving their monetary objectives. This section serves as a guiding light, illuminating the necessary steps, qualifications, and key insights to seamlessly tread this fulfilling professional path. Delve into the nuances of India's financial domain, and learn how to become a Financial Advisor capable of steering clients toward a secure economic future.
What are the skills and qualities required to become a/an Financial Advisor?
When it comes to how to become a financial advisor, the first thing that students should know about financial advisor skills. Some of the essential financial advisor skills we have mentioned are below.
Critical thinking: Critical thinking skills are important to spot trends, examine the pros and cons of a particular course of action, and make changes as per the requirement. In the organization, critical thinking skills should, therefore, be demonstrated. Critical thinking is important as it makes sure that a financial advisor career can find the best solution to a problem.
Research skills: Research Skills allow people to define an issue, obtain knowledge resources that can solve that problem, assess the quality and value of such resources, and find an appropriate solution. Individuals in the financial advisor career must learn how to conduct considerable research into economic theories and best applications.
Communication skills: Communication skills are essential in the profession of a financial advisor. A financial advisor is required to work with a variety of people who have different economic circumstances and stages of knowledge. Individuals in the financial advisor career must be able to present complex information and explain technical slang along with incomprehensible terms.
Problem-solving ability: A financial advisor is required to learn how to analyze potential barriers and prepare solutions. Supporting his or her keen knowledge of economic theories and systems, one must be able to offer advice and solutions to team members and clients to help them make low-risk, high-benefit financial solutions.
Leadership: Along with corporate skills, a financial advisor must learn the teaching skills necessary to instruct one’s clients or to lead a team of advisors. In a career as financial advisor, individuals must become experienced in figuring out the best explaining methods for a particular client, and instructional plans, and learn how to assess and evaluate progress. Most individuals are trying to equate leadership with a particular position or job description.
Popular Online Finance Courses and Certifications
Which certifications and internships can be helpful in becoming Financial Advisor?
We have mentioned below a list of certification courses that aspiring individuals may opt to upgrade their skills and knowledge for a career as financial advisor.
Internship Availability
There are several advantages of an internship in financial advisor career. A finance internship includes analyzing the flow of money in and out of investments. A finance internship offers a magnificent chance to gain real-world experience in high-stakes financial advisory services. While most internships are unpaid, some business internships do carry a small stipend. Interns in the financial sector can expect a nominal hourly rate.
If the student is in college and anticipating using an internship to get his or her foot in the door of the financial sector, then he or she is not alone. Becoming a successful financial planner is all about having a good internship opportunity before entering the market.
Career Path Progression for Financial Advisor
Junior Financial Advisor: This is the entry-level role where a junior financial advisor, learning assists senior advisors with client management and basic financial planning tasks. During this job role, junior financial advisors develop stronger communication and analytical skills while expanding their knowledge of various financial products and strategies.
Senior Financial Advisor/Team Lead: With experience, advance to senior roles where as senior financial advisor oversees a team of advisors, manage client portfolios, and make strategic decisions to maximize clients' financial growth.
Financial Advisor Jobs and Salaries
Junior Financial Advisor
- Average Salary 20000
Job Description
As a Junior Financial Advisor, assist senior advisors, handle basic financial tasks, and engage in client relationship management to develop foundational skills in financial planning and analysis.
Salary Description
For a junior financial advisor, the average annual salary is around Rs 2.4 Lakhs, equivalent to a monthly income of approximately Rs 20,000.
Senior Financial Advisor
- Average Salary 37500
Job Description
This senior position of financial advisor reflects not only an advanced understanding of financial markets, investment strategies, and client relationship management but also the ability to strategize and lead a team of advisors effectively.
Salary Description
The role of a Senior Financial Advisor commands a higher compensation due to the increased responsibilities and expertise required. With an average annual salary of Rs 4.5 Lakhs, a Senior Financial Advisor's experience and track record in successfully managing complex financial portfolios and providing comprehensive advisory services significantly contribute to their higher earnings.
Salary credit: Ambition Box
What is the job outlook for Financial Advisor?
Currently, there are only a few certified financial advisor jobs in India that are to work for its 1.2 billion-plus population. This diminishes in comparison to the USA which has more than 60,000 certified financial advisors for its 250 million population. Financial education is low in India today but with an increasing number of educated investors getting into the field, a financial advisor will have to have the required academic qualifications.
It broadly seeks graduates having commerce, economics, finance, mathematics, and management background in education. Graduates get started in financial planning firms. Mutual fund firms also hire fresh and skilled graduates and so do stock brokerage houses. Indian financial market is one of the oldest markets in the world and with a quick rate of growth, it has also set foot into the best markets in emerging economies of the world. The history of the Indian capital industry dates back 200 years when it was under the rule of the East India Company.
The current scenario includes the primary industry, FDIs, alternative investment options, banking and insurance and pension sectors, and asset management segment. The financial advisor job is massively growing or we may say the evergreen industry.
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Frequently Asked Questions for Financial Advisor
Que. What is the difference between a financial advisor and a financial planner?
Ans.A financial advisor is a professional who helps companies and individuals create a program to meet long-term financial goals. A financial planner is a broader term for those who help manage your money including investments and other accounts.
Que. What does a financial advisor do?
Ans.A financial advisor is a professional who helps you organize your finances and projects the results of your savings and investments so you can see how well-prepared you are for retirement. He or she also helps you make decisions with your money that will help you reach your financial goals as efficiently as possible.
Que. How much does a financial advisor charge in India?
Ans.The fee of a financial advisor can be a percentage of the assets under management (AUM). For example, if you have handed over assets worth Rs 1 crore to a fee-based financial advisor to manage, then he or she may charge an annual fee of one per cent to two per cent of the assets that he is managing.
Que. Is it worth having a financial advisor?
Ans.If you have funds and can afford a financial advisor's fee without going into debt, a financial advisor might be a good investment. In fact, an advisor’s fee may pay for itself in a few years if he or she helps you make better financial decisions in the meantime.
Que. What is the work of financial advisor?
Ans.The role and responsibilities of senior financial advisor is to help people in maintaining finances and projects and to achieve their financial goals like how to use savings and what should be done with that.
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Questions related to Financial Advisor
can anyone tell the difference FPI ,FDI,FII with proper explanation ???as this is very much necessary to know in financial industry.
FPI: Foreign Portfolio Investment
FDI: Foreign Direct Investment
FII: Foreign Institutional Investment
FDI involves direct production activities and is usually of medium to long term in nature.
FII is a short term investment mostly for the financial markets.
FPI simply means foreign institutions or investors putting money in our Governments Financial Assets and Stock Market, Etc. FII is mostly synonymous to FPI in financial terms.
Answer laterwhere I can make my carrier in finance other than doing MBA and other professional course like cpa and cfa because I cant afford for all this. course and also I m interested in becoming finance analyst , finance advisor. so getting this want can I do to achieve this???
Irrespective of the fact whether you have a MBA, having a Undergraduate or Postgraduate Degree focussed in Engineering, Statistics, Economics and Mathematics along with Financial and Analytics Certifications and Relevant Projects/Internships, qualifies you to sit for Job Interviews for Quant, Market & Financial Analyst, Data Analyst, Business Development and Management Positions. However, many Non Commerce Graduates, nowadays do appear for the CFA Certification Exam, for a successdul career in Finance before finally pursuing MBA in future.
If you are from Commerce Background, having a B.Com, you may pursue a M.Com or prepare for CA. Ypu may even consider yourself for a Job in the Public or Private Sector directly after B.Com or BBA, having relevant Experience.
The Government Sector has numerous Opportunities in the Field of Finance, like being an IRS Officer (UPSC CSE) or appearing for Government Service Exams like SSC CGL, RBI Grade B, IBPS PO, SBI PO, Indian Economics Services and many others.
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Did you know?
Fact 1
Financial professionals cover many different aspects of financial health such as retirement, investing, and life planning
Fact 2
A $100 today is expected to be worth $50 in 2033, according to SSBI data due to inflation
Fact 3
Financial advisor’s rates have increased eight times from the past two decade
