As the title of this blog suggests, Wealth Consultants and Broker Agents are certainly not the same professions. In India, these two professions are usually understood as one and the same. This is a myth (misconception) and needs to be clarified for the audience to be able to select the appropriate services to address their needs related to the financial world.
Let’s throw some light and quickly discuss what the words in the above image mean in a bit more detail:
|CRITERIA||WEALTH CONSULTANT||BROKER AGENT|
|QUALIFICATION||Highly qualified Chartered Wealth Manager from an institute recognized by the National Institute of Securities Markets (NISM), Ex. Chartered Institute for Securities and Investment (CISI), U.K.||Must have passed 10th or 12th grade to become a broker or an agent.|
|PURPOSE OF SERVICE||To be able to appreciate the net-worth of their clients.||To sell the products and services of their employer institution.|
|NATURE OF ADVICE||INDEPENDENT ADVICE:|
This means the consultant is not obligated to sell you products of any particular company in the market. Thus, advice is independent and unbiased.
This means the broker/agent can only offer advice based on the products available to them from their employer.
|NATURE OF CLIENTS||Services are suitable for anybody interested in bulletproofing their finances and long term financial security.||Usually clients looking for short term investments or one-off product purchases.|
|SCOPE OF ADVICE||Advice is offered in line with the short or long term financial goals and lifetime financial planning of clients.|
Ex. Retirement, child’s education or marriage, purchase of property/vehicle, and more They are also a single point for advice on all financial products like insurances, mutual funds, PMS/AIFs, stocks, loans and others.
|Any one out of stocks, mutual funds, insurance, loans or other products from specific financial institutions they work for. This advice is usually not suitable for long term goal planning. Multiple agents/brokers will have to be appointed to create any financial plan.|
|CUSTOMIZED FINANCIAL SOLUTIONS||Offer customized solutions for all irrespective of the net-worth of the client.||Not available|
|CHARGING STRUCTURE||Fixed retainer and Fixed investment advisory charges, usually charged annually. Affordability of service is assured.||Fully commission based (leading to unethical selling).|
|CONFLICT OF INTEREST||Gets eliminated as a fixed fee is charged. Income increment of a wealth consultant is aligned with the growth of their client. Hence, interests are aligned with the client.||Conflict exists since the brokers/ agents focus on selling products that generate higher commissions instead of offering products that solve a purpose.|
Based on the above comparison, mentioned below are some conclusions:
- Any individual or family serious about securing their financial future should appoint a QUALIFIED WEALTH CONSULTANT (preferably a Chartered Wealth Manager).
- Wealth Consultants personalize and customize financial solutions that are directed towards helping their clients plan for their goals in life.
- Wealth Consultants work on an affordable fixed fee model and are not liable to sell products or services from any particular financial institutions. Thus, no conflict of interests exist between the client and the appointed consultant.
- Wealth consultants are a single point of contact for lifetime financial planning and can help you manage your investment portfolio, insurances and loans as a bonus service.
Thus, just like a family doctor for your physical health, everyone must have a wealth consultant as a doctor for their financial health.
To book a complimentary meeting with a Wealth Consultant (Chartered Wealth Manager) go to WealthOK.in and book an appointment.