Why it is better to have more than one financial advisor

In the High Networth Individual (HNI) circle, it is a common phenomenon to have a host of investment advisors. They would usually restrain investing through just one investment advisor, even if they trust him and like his service. Unlike an HNI investor, a retail Investor, would not divide his investments amongst more than one advisors, since there is a fear of not getting served properly because the investment amount is not so significant.

The other reason is that over the years the retail investor becomes so dependent, develops trust and be so comfortable with one investment advisor that he stops entertaining or meeting ith new advisors and this is the most dangerous situation. In such scenarios of blind faith, there might be mis-selling by advisors or his lack of knowledge might push a wrong product.

It is time for investors to take a leap and make changes in their ways of investing. Please understand that the ROI (Return on Investments) on your assets and investments is as important as it is for the wealthy individuals, more so because it affects your life-long goals and not a lifestyle. You should not take it lightly as your minor unconscious decisions can cost a bomb. The difference in returns of a few basis points can cost lakhs of rupees over a long period.

Here is how dealing with multiple advisors helps an investor:

1. In this dynamic world, new and exciting investment opportunities come regularly in the market. Even if one doesn’t want to invest, it is always good to know about these new products. When you deal with more than one advisor, chances are more that you come to know about such opportunities.

2. When you deal with multiple advisors, they are always on their toes. The one, who gets major pie, shall have a fear of loosing the pie and others who are at lower share, shall always lure by way of knowledge or service, to get more business.

3. Having multiple advisers always helps when you get investment advice, whether in old traditional products or exotic new products. Neither two people nor two organizations, think alike. Gathering information from one company and validating it through the others, makes sense while dealing with money.

4. Let all your advisors know that you have been dealing with multiple people, as this shall restrain them to offer substandard product or investment advice.

5. Your continuous interaction with these investment advisors, shall give you an insight into their philosophy and help you take rational decisions at every stage in life.

6. The service standards shall be too high when you deal with multiple advisers.

Think thrice and act once is the new mantra to deal with your investments.