Help your clients avoid costly mistakes down the road.
Many investors wondering about how much to pay a financial adviser will, at some point, think about making unusual investment strategies of their own.
With the aid of various online tools and platforms, it is easier than ever to take a DIY approach, and this creates a big challenge for you as a finance professional.
By having thorough knowledge of what is out there, you can not only help clients who want to go a little off the beaten track with their investments but also successfully persuade new leads to take your advice.
The trend towards simple and convenient options for investing online means that a few clicks on a smartphone can make anyone a stock market investor.
The most popular way to do this is by “robo-investing,” where a remote computer does much of the work for the customer. It can help build diversified portfolios and even continue maintaining them.
Of course, it is easy to make novice mistakes, which means that even if the amounts involved are low, robo-investing can be costly overall.
This is where you can explain that choosing a financial adviser helps clients navigate the markets safely. You will need to state the case for leaving investing to human professionals rather than robots.
There has been a lot of talk revolving around cryptocurrencies over the past few years, especially Bitcoin, which is the most well-known of its type. It is true that early investors have seen their returns grow beyond their dreams, but now that the word is out, is there really an opening for latecomers to the Bitcoin party?
Enthusiasts say that this is definitely the case, and now major investment companies are getting in on the action. One major reason is that the number of Bitcoin units in production is finite, thereby suggesting that the old rules of supply and demand will eventually be a guarantee of continued growth.
However, many of those who made a Bitcoin killing have already moved on to cryptocurrencies such as Ripple. This is one area where you can offer clear financial advice that could save clients from making costly “fool’s gold” mistakes.
Many consumers are consciously making more ethical and sustainable choices, so it is no surprise that investors also wish to want to do this.
According to the latest YouGov research, 47 per cent of people in the UK want to make both money and a positive difference in the world. However, ethical and sustainable investment funds are niche markets, representing just 1.2 per cent of the total assets held by UK funds.
One of the reasons for this might be that there are many confusingly interchangeable terms, including “ethical,” “socially responsible,” “sustainable” and “environmental” attached to the concept.
You can use this to your advantage in letting people know when to use a financial adviser to invest in ethical funds. As an expert in the field, you can point clients in the right direction for funds or companies that fit their interests and criteria.