Different personal finance designations

Henil Shah
/ Categories: Mutual Fund, MF Unlocked
Different personal finance designations

Many people, who call themselves experts, use very fancy names to make investors trust that they are the authentic advisors and care sincerely for your financial well-being. However, this is not the case. There are only a few people, who look after both, the front and the back office, but most of them, with big assets to manage, segregate it into different departments. In this article, we have discussed some of the common personal-finance designations and the actual job they do, so that you understand the difference and choose accordingly.

Financial Advisor/Investment Counsellor/Financial Planner
This is the most common designation that you might come across. As per the designation, you might feel that the job of a financial advisor is to advise on your finances, the job of investment counselor is to guide you regarding investments, and the role of a financial planner is to make a financial plan and guide you towards it. However, the sad truth is that most of them carry a job description similar to that of a relationship manager or business development manager or a sales manager. This means that they are not the actual ones to advise you regarding your overall financial situation. Even the person, designated as a financial planner (unless he has his practice), does not make financial plans himself. The financial plans are prepared by para-planners.

Para-planners
As said earlier, para-planners are those, who prepare your financial plan based on the data collected by the financial planner/financial advisor and advise you, accordingly. As per their job description, they are supposed to provide support to financial planners/advisors. However, in reality, para-planners are the real financial planners, who work on your plan.

Wealth manager
This designation is very fancy. You might think that they are the ones, who would manage your wealth. However, again this is not the case. They are like financial planners/advisors, having job profile of client acquisition. T only difference is that wealth managers are hired to acquire HNI clients. Also, there are people at the back-end, who design your portfolio and recommend your investments.

All in all, it is always better to speak to a person, who is making your financial or investment plan or is designing your investment portfolio. this is because it is he, who knows what he has advised and why. So, next time, do not get lured by any fancy designation. Discuss every bit with the person, who is going to work on your project.

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