Ask about his career and ask for his identification and registration with the CNBV, say, experts; considers that the advisors also have their interests, such as meeting goals and charging.
If you think about placing your savings in an instrument of the stock market make sure you know the trajectory of your advisor, to avoid that your investments are affected by a bad strategy or conflict of interest.
The most frequent complaints from investors regarding their adviser are given because the client did not understand the instrument that he hired and the returns are not what he expected, said the director of Patrimonial Banking of Grupo Financiero Actinver, Mauricio Sotomayor.
Investment advisors are required by the Securities Market Law to profile their clients and “explain the expected returns and possible risks that their investments may bring,” added the managing partner of the independent investment advisory firm, Sierra Madre Capital. , Julio Hernández.
They also make investment decisions on behalf of third parties (if authorized by the owner), provide advice on the investment of securities and issue recommendations. Investment advisors Omaha NE
To avoid surprises, research the following points about your advisor:
1. TRAJECTORY, LONG OR SHORT?
In the world of investments, it is better to hire the services of an experienced advisor of at least four or five years in the same institution, than a young graduate of the University.
“When a consultant is not stable in an institution, they can put their clients’ investments at risk, because the monitoring and surveillance of the portfolio are lost,” said Sotomayor.
2. HAVE CREDENTIALS
Independent investment advisors and those belonging to a credit institution, broker-dealer, investment fund operators, fund managers for retirement must be registered with the CNBV and comply with the measures established in the Securities Market Law.
They must also be accredited by the Mexican Association of Stockbrokers (AMIB) or the Mexican Association of Independent Investment Advisers.
3. PORTFOLIO MANAGEMENT LEVEL
In some cases, the advisor can also be a portfolio manager of investments, and in that case, you should know what is their experience operating the money of the investors, in what type of funds and what performance did they have, suggested Hernandez, of the Sierra Madre Capital.
4. FULFILLMENT OF GOALS
The advisors have goals to fulfill, imposed by the company for which they work as to attract or attract new clients, or multiply the resources advised. If to reach them they put aside the interests of their clients, the returns of these can be affected, said Sotomayor.
5. COLLECTION OF COMMISSIONS
Investment advisors charge a commission for managing a portfolio depending on the term to which your investment is deposited, the amount and whether it is fixed or variable. In the case of Sierra Madre Capital, it goes from 0.4% to 1% per year, commented Julio Hernández.
6. IDENTIFY CONFLICT OF INTEREST
The advisors that belong to a financial group have the slogan of offering their clients the portfolio “of the house.” Independent consultants do not have their product; they are in charge of customizing it for each client.
“If you notice your adviser’s insistence on acquiring a financial instrument that does not suit you or does not suit your needs, he may be receiving some commission for placing it,” Hernandez said.