Save Rs 499 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Advisor

490 views 1 replies

MS SAMEER

CMA*CA*CMDM*ast FUND MANAGER*LEGAL ADVIS

14938 Points Posted on 15 July 2010

Advisor
1. It's a good idea to choose an advisor carefully according to his or her professional credentials, experience and expertise. Fees and services provided are also important considerations.

2. A fund's advisor has the primary responsibility for the investment performance of the fund. This responsibility may be shared with another investment advisory firm, with each advisor focusing on different asset types in a portfolio. Advisors receive an annual management fee, which is computed as a percentage of a fund's assets under management. The fee makes up a large portion of a fund's operating expenses. For fund investors, judging the quality of a mutual fund's portfolio management is one of the most important considerations for investing in a fund.

Replies (1)

Guest

Mutual fund advisors shoulder immense responsibilities; however the shrugging part has become more rampant these days. Only brokers of professional financial services companies, perform well. When it comes to performance related commission or income, derived by an advisor, the scenario then has a different seriousness altogether. However, this is possible only in the case of portfolio management services as it involves an investment of huge sums. But major portion of stock market investments deal with small investors who wish to invest even as small as ` 10,000/- and further, even play safe. The only recourse the advisors at times find is to draw the investor towards equity market or churn the investment. Hence, it is extremely vital to keep your eyes open, use stop loss as a means to monitor your investment and stay updated. I can suggest GEPL - https://www.guptaequities.com as a good financial services company for their professional attitude.