Mutual funds: Should you seek an investment advisor before choosing the right funds to curate portfolio?

Before curating a mutual fund portfolio, is this recommended to seek an expert’s advice? One advantage is that they help you save time, money, and effort, which you would have expended in carrying out research before making investment-related decisions.

Additionally, you often need the right schemes which are the right fit for you – something only an expert, trained to give unbiased advice, can give.

We spoke to a few experts, and this is what they had to say.

Bespoke advice

One advantage of engaging an investment advisor is that they tend to offer customised advice based on the profile of the investor.

Preeti Zende, Sebi-registered investment advisor and founder of Apna Dhan Financial Services says, “Sebi registered investment advisors do careful study of individuals profile pertaining to his/her age, occupation, income, family responsibility and risk taking ability while suggesting appropriate SIPs based on historical data. Their suggestions are based on a thorough study and analysis. It can not be compared with random advice by a friend or a relative. To save your time and efforts and have peace of mind, it’s better to consult SEBI RIA for your comprehensive financial planning.”

“Hiring a financial advisor before selecting mutual funds offers several key benefits. A professional RIA brings in-depth expertise and up-to-date knowledge of markets, ensuring mutual fund choices are tailored specifically to individual goals and risk tolerance rather than generic recommendations,” says Siddharth Alok, AVP Investments, EpsilonMoney.

Making sense of data

Another advantage of an expert is that they can make sense of several data points available to them.

“An advisor may be able to look at multiple qualitative data points including discussions with fund manager which most individual persons may not be able to do,” says Alekh Yadav, Head of Investment Products, Sanctum Wealth.

Additionally, an investment advisor helps investors stay aligned with their financial goals.

“Regular monitoring and personalised reviews mean portfolios remain aligned with evolving life goals and risk profiles, optimising both returns and peace of mind,” adds Siddharth Alok.

To sum up, at the time of curating a mutual fund portfolio, it is recommended to seek the services of a Sebi-registered investment advisor for bespoke advice that can help you achieve your financial goals. However, it is vital to note that mutual fund investments are subject to market risk and no one – not even RIAs — can predict what would happen in the future.

Note: This story is for informational purposes only. Please speak to a SEBI-registered investment advisor before making any investment-related decision.

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