Simplevest Bavdhan Pune

Educate One of the first duties an investment adviser performs is discussing clients' financial goals and educating clients on various ways to accomplish them. This includes giving overviews of different investment types and explaining how each can benefit, or hinder, the client's objectives. Determine Risk Tolerance Investment advisers help clients assess how aggressive they can be with their investments and the amount of risk they can bear. The adviser must consider the client's long- and short-term goals, family status, age, employment and expenses to give the most accurate advice. Analyze Investment Options Once investment advisers establish the client's goals and needs, they must research and analyze investments, strategies and market conditions to determine which option is most appropriate. Advisers must also keep up with market trends and financial news to ensure their guidance is accurate and relevant. Provide Investment Recommendations After conducting the required research, investment advisers put forward an investment strategy that can best help the client meet their goals. This plan usually involves combining more than one type of investment, such as integrating stocks with IRAs and bonds to help diversify the portfolio and mitigate risk. When the client experiences a life change, such as marriage, the birth of a child, a new job or retirement, investment advisers reassess the investment approach and recommend changes as necessary. Outside of major events, advisers monitor client's portfolios and propose required modifications. Record Keeping Because investment advisers work with sensitive financial information, they have a responsibility to keep detailed records of the services they provide. These include signed contracts, disclosure statements, advisory reports and other client documents, as well as clear documentation of invoices, payments received and the exact services rendered. The need for rigorous record keeping is magnified by the possibility of government agencies such as the Securities and Exchange Commission or Internal Revenue Service requesting documentation or conducting an audit on the adviser or the client. Regulatory and Legal Knowledge Investment advisers are required to possess thorough knowledge of federal and state laws regarding investments, financial advice and fees for financial services. They must also know and adhere to the regulations and requirements of the SEC, the Financial Industry Regulatory Authority and any certifying bodies, such as the Certified Financial Planner Board of Standards. Ethics Compliance Federal law requires that investment advisers abide by stringent ethics rules to ensure impartial, good faith advice. This is sometimes referred to as "fiduciary duty," and requires that investment advisers place the financial well-being of the client above their bottom line by disclosing all relevant information about a investment, avoiding conflicts of interest, and acknowledging any payment or other compensation they receive for recommending certain products or investments.