Types of Financial Advisory Services Available in the Market

PrintInvestment opportunities are tempting, even more so because of financial advisory platforms that aid in reaping high ROI. Individuals as well as corporate investors should be aware of the financial products and services available for them to maximize their scope of returns. Here is a guide to understanding the basic tenets of financial advice and ways to utilize them to your benefit:

It is important to understand that a financial advisor or adviser can be anyone who provides consultation in retail, institutional, as well as corporate sectors. In this sense, your advisor could be a broker helping you trade in futures, securities, commodities, and foreign exchange. He could also be an agent consulting you with respect to insurance planning, hedge funds, and unit trusts.

Financial services for individuals include managing investment portfolios. A portfolio is a pool of financial tools such as bonds, mutual funds, shares, which is customized based on the budget and monthly income of the investor. Portfolio management refers to the selection of the right tools under a fixed investment policy to bring down the levels of risk and increase returns. This is a fundamental requirement for every investor to be managed with utmost discretion. Pragmatically, diversifying investment goals minimizes the obligation of risks applied on a regional basis. In other words, streamlining investments across various countries expands the scope of profit in the venture. Most advisories offer to manage funding accounts on behalf of clients who have a time crunch because of a hectic work schedule. Such people require brokers or assistants to examine the stocks frequently, which may not be possible. Managed brokerage is also useful for new investors who are yet to explore the vast expanse of global economics.

Standard instruments of investment may not be sufficient for corporate clients. To monitor the risk factor associated with heavy investments, corporate investors need better facilities for protecting their capital. With the assistance of a reliable capital markets advisor, professional investors benefit from a customized pool of financial tools and instruments for a balanced proportion of risk to rewards. Seasoned traders benefit from brokerage functions with respect to futures and hedging, with a balanced emphasis upon local derivatives as well as international exchanges. Clients have the freedom of choosing trading instruments of their choice including commodities, stocks, energy, metal, and spot currency. Investments can be diversified to conduct trading in multiple currencies and the exposure to risk is calculated accordingly. In risk management, clients receive services for protecting their capital via tools of hedging.

Private companies require a whole new set of tools for asset and risk management. They must look for instruments to aid in funding, corporate restructuring, mergers and acquisitions, and capital market advice to name a few. Smaller businesses opt for debt establishments to expand their scope of development. This approach of raising capital can be risky and should be managed with Initial Public Offerings for enhancing the shareholder value. In any case, equity as a means of raising funds is much more preferable.


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