The internet complaint world is full of complaints against misselling done by so-called agents, bankers, wealth managers mostly faced by NRIs (Non-Resident Indians). NRIs own and earn a good amount of money and this is also a curse when you have a bad handler of money. This is the main reason why NRIs should look for Financial Planner in India.

NRIs have deep and long-lasting ties with the motherland. They have financial assets & matters to attend to, in India. hence they need a helping hand and an expert mind. But many get duped by imposters who call themselves “Advisor” but are actually money makers. Ultimately time & money are wasted.

Being an advisor is a fiduciary job. So trust is an important ingredient. Trust comes from checking, due diligence & asking relevant questions, and flagging problem areas.

This article will dwell on this subject and develop a road map on finding a suitable financial planner in India for any non-resident (NRI) investors.

Choosing and Appointing your Financial Planner in India can help you in:

1. Planning Your Investments. (Making & implementing a goal-based strategy to invest)
2. Save Money, Time & Effort.
3. Getting right answers – on how much to invest, how much to insure etc.
4. Save taxes & Comply Rules.
5. Save you from unsuitable products & schemes.
6. Bringing back money to your country of domicile or India.
7. Knowledge sharing on Indian Investments & the economy.
8. Behavioral Management.
9. Managing transactions, KYC, Banking issues, investing issues, rebalancing & reporting of portfolio.

You want to and you should invest in India. A Financial Planner in India can assist and be of immense value.

There is no doubt about it. You need a Financial Planner & Advisor who can assist you in this.

You should look for these things in your financial planner:

1. Qualification for Financial Planner

Your prospective financial planner or financial advisor needs to be:

• CFP (Certified Financial Planner from Financial Planning Standards Board – FPSB)
• SEBI registered RIA (Registered Investment Advisor)

Or BOTH.

You can check his credentials here:

CFP All India List

SEBI RIA All India List.

These 2 certifications actually allow (legally) them to be called –A Financial Advisor or Financial Planner in India.

Why: The above 2 qualifications are attained by qualifying certain expert examinations, validating required experience, adhering to networth requirements, and by agreeing to be audited on their process of financial planning & advisory.

So if I go another way round: Your CA or CPA or Your Banker (with all fancy designations like Wealth Planner, Wealth Advisor, Wealth Manager, Wealth Expert), Your relative or a childhood friend who is Life Insurance Agent with any company, your Mutual Fund Agent – IS NOT A VALID FINANCIAL PLANNER OR ADVISOR.

Ask for these 2 qualifications – and then take it further.

Is qualification important? A person not qualified will always say – It is NOT important. One who does not adhere to the laws of your country – would you like to give your money to them?

You cannot negotiate qualification as most misselling is on the premises that the person selling you crap is not regulated or audited.

2. Experience

After the most non-negotiable factor – qualification, one should look for experience. I would not say it is essential to choose the most experienced but experience teaches us to avoid mistakes, set processes & help in decision making.

Look for how many clients your financial planner is advising and for how long.

For NRIs, each country may pose different rules when it comes to investing. For example, investments by US & Canada NRIs have different rules for investments in India. Your FP should have exposure to this. Also, look if your FP can handle situations like change in your country of domicile or return back to India.

3. Temperament

A speculator will make you a speculator. if you find your planner & advisor language of being an opportunist, a speculator, a timer – He is not the right person.

If a person is casual, does not follow risk management, just brag returns, just get excited on every opportunity he is not doing any favor to you.

One who tells to invest in anything that comes, serves you complex products without following basic investments, just sends you compelling emails/WhatsApp with all relevant-non relevant information like – “Last day, never before opportunity, best fund to invest” – is actually playing with your mind.

He is making you a speculator.

This is a big indicator as most planners (like most people) want praise for work or no work. They will read crappy websites, memes and think that they are actually spreading information. They are just misinforming and pushing products.

A natural cursing tone (cursing markets, economy, a political leader or situation), blame shifter, luck acceptor, willing to let go important information, etc – you are not looking for a relationship- you are looking for an expert. So do not accept all this.

Someone who misses the basics of financial planning (for eg contingency fund & term plan comes before investments) is a lazy or ill-informed person to engage for your finances.

4. Expertise

The know-how, the in and out of products, rules of certain products & schemes are also very much required for being wholistic planner. One must check the knowledge levels of his financial planner & advisors.

You can ask direct questions on Equity Investments or read what his level of expertise is. See how deep he can give you insights into various products & strategies used in personal finance.

A person who is just one-sided – say on Insurance or Equity Shares – is a red flag. A product pusher will always say my plan is the best plan in all circumstances. You know this is NOT POSSIBLE.

See his comfort level of talking on various opposite products like Equity MFs & PPF or AIF or Interest Rates.

One should also look for Taxation Related Expertise. A CFP or SEBI RIA is expected to be tax experts but they must have a thorough knowledge of taxation of various products.

It is also quite possible that your financial planner may provide some valuable services. Look for these and see if they compliment your requirements. These can be Income Tax Return Filling, Will Making, or managing a Direct Equity portfolio with credible research.

5. Integrity

This is a very big word. In personal finance it comes down to few very basic checks:

A. Compensation – of your Financial Planner (a product seller who gets different revenues for the same product will not be free of bias.)

B. Clarity – A good financial planner gives your pros & cons. This is not to justify his work but to provide you with information to make a good decision. He should not conflict with his own views and be able to say Yes or No.

C. Ability to counter & get countered – can he say NO because being a yesman is taking an easy path.

D. Process man – In the long run Process & Checklists triumph. The process also defines discipline, ability, and time to act and solve a problem. The process also makes transactions error-free.

E. Communication: What is the accessibility of the financial planner? What is the backup communication channel in case he is not available temporarily? Is he regularly meeting on the defined review dates. Many planners choose to sit on a high citadel and let their juniors do all the work. See this crossover.

F. Fees – Look for an easy-to-understand and easy-to-implement structure.

I hope this is a good checklist to find Financial Planner in India.

Do let me know your queries in the comments section below or email me madhupam at the rate thewealthwisher dot com.