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2. Quality research
An investment advisor should be well-supported by high quality research as it is
important to justify recommendations on what to buy and sell. You would not want
an adviser who gives you advice based on rumors or hearsay. A well-trained research
team can also support the investment advisor in providing the latest info rm ation
such as market trends and deal with questions relating to retirement, taxation and
other issues. The research which is the key technical factor should be well-documented,
consistent, and comply with professional standards. All in all, the quality of the
research is the key success factor for any investment advisor.
3. Marketing support
An ideal investment advisor should provide a marketing support services such as the
informative newsletters on a weekly or quarterly basis. Information bulletins will
help you keep track of the progress of your investments. Some investment advisors
conduct special meetings or investment awareness seminars for their investors and
the public.
4. Competitive fees
Perhaps the key factor among the local investors when selecting an investment advisor
is their fees. Are the charges reasonable? Does the advice justify by the cost? Investors
may prefer to try to cope with all the clerical work associated with the entire investment
planning process rather than bear the cost. However, it may not necessarily be the
best solution if you cannot afford the time, effort to keep track of your investment.
Devising investment plans for retirement for example is no easy task indeed. It requires
dedication plus a lot of efforts and time to ensure the highest possible returns
for ones hard-earned money. Some investment advisers produce various other extra
services that are not easily available in order to distinguish themselves from others.
Benefits of this nature usually comes with higher fees.
A sophisticated investor normally looks beyond the fees charged as the cheapest fee
is not always the best. Good advice comes with a price and you should be prepared
for it. The advisers should also disclose commissions or other related fees to be
paid for their services rendered.
5. Track Record
The establishment of the investment advisor is another vital key. Is he or she licensed?
Does he or she have any experience? Highly-skilled advisors with years of experience
are normally favored by the investors. In short, competent investment advisers normally
carry impressive credentials with them.
It is always recommended for individuals or specifically "don't-know-anything"
investors to seek professional help to achieve a more "secure" and "productive"
return. The same applies to knowledgeable investors who lack the necessary precious
commodity called "time".
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