It is obvious that the investment adviser must come up to scratch. Investors would do well to thoroughly evaluate the adviser before signing up. Some seemingly elementary but important questions should be a part of the evaluation process. To begin with, investors would do well to seek clarity from the adviser on the terms of engagement: the services that the adviser will provide, number of portfolio reviews, and the time frame for which he will be engaged should be explicitly defined and agreed upon.

Investors must quiz the adviser on the basis for mutual fund recommendations. If the adviser claims to conduct in-house research, he should be questioned about the process. If the adviser relies on external sources, then the latter's credibility should be verified. Figuring out how the adviser forms his recommendations will aid investors in evaluating the quality of service on offer.

If the adviser makes use of model portfolios, he should be questioned on their construction, especially if the same entail multiple asset classes. Also, investors should ask the adviser to provide a track record of his recommendations over the years. This will help gauge his skill sets. Finally, it will help to ask for references of existing clients, so that the adviser's credentials can be independently verified.

The investment adviser's role in helping investors achieve their investment objectives is undisputed. On their part, investors would do well to engage one after due care and consideration.

Happy Investing!!

We can help. Call 0 94 8300 8300 (India)

Leave your comment with mail ID and we will answer them

OR

You can write back to us at PrajnaCapital [at] Gmail [dot] Com

---------------------------------------------

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

Download Tax Saving Mutual Fund Applications

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

1. ICICI Prudential Tax Plan Invest Online
2. HDFC TaxSaver Invest Online
3. DSP BlackRock Tax Saver Fund Invest Online
4. Reliance Tax Saver (ELSS) Fund Invest Online
5. Birla Sun Life Tax Relief '96 Invest Online
6. IDFC Tax Advantage (ELSS) Fund Invest Online
7. SBI Magnum Tax Gain Scheme 1993 Invest Online
8. Sundaram Tax Saver Invest Online
9. Edelweiss ELSS Invest Online