Whom Do You Want To Hire, A Certified Financialplanner, An Investment Advisor Or A Wealth Manager

Let us see the roles and responsibilities of different financial experts, who are often deemed to be same in a layman’s world. A lingering disconnect exists among the ranks of financial planners who perceive themselves, and market their firms, as wealth managers. Yet, based on job function, firm description and professional certifications, only few meet the qualifications described by set standards. Moreover, what an advisor perceives as his or her advisory practice type falls short in many cases and overstates its capabilities. For instance, a money manager builds portfolios of individual securities for clients and focus exclusively on asset management. Investment advisor is a person who emphasizeson asset management as his or her primary service, but may offer modular planning services such as retirement planning or education funding. A financial planner develops complete financial plans for clients based on extensive analysis of their assets and liabilities. Wealth manager specializes in comprehensive wealth management and transfer issues, including stock option planning, executive compensation, complex trust and estate planning, and charitable giving. Advisors seeking to differentiate themselves are changing their labels faster than they are adopting new services and practice types to legitimize those labels.

A large percentage of financial experts identify themselves as financial planners, while at the same time report a strong shift toward wealth management as both a business model and a service descriptor. By way of implications, it is concluded that advisors who offer financial planning or wealth management services face increased competition and they need to find ways to clearly differentiate themselves.Many struggle to articulate their unique value proposition (UVP) or simply rely on an out-dated one that has lost relevance. For decades, the value proposition for most advisors centred on the sale of investment and insurance products. While it has since evolved to include investment management, some advisors are delivering less value by focusing on passive investing or not looking beyond determining an asset allocation and rebalancing to it. That won’t work today as we are now on the cusp of another evolutionary age.

Far too many advisors mistake a marketing slogan or a tagline for a value describes the service and benefit they offer to clients. Ideally the UVP identifies and describes the target buyer, It’s one thing to state the value proposition in marketing materials to attract new clients; it’s quite another when advisors perceive themselves (or hope the market perceives them) as one thing, when in fact they are something else. The value proposition is the basis of firm’s business model and, increasingly, the evidence suggests it should be based on meeting clients’ goals through financial planning and advice. So, now when you visit a wealth management in Delhi or plan to hire a certified financial planner, just be sure of what you want from the hired financial expert!

I write article On behalf of Wealthcareindia.com, a leading Wealth Management & Financial Planning Company in Delhi, offers Online Financial Planning, SIP Investment or SIP Mutual Funds services by Certified Financial Planner.