If you’ve been investing in equity market then you must’ve heard of a term ‘equity advisor’, very often. Equity advisors perform crucial and essential work in the field of market research and analysis. They are often employed my advisory companies, firms, mediators, and work for themselves. In the Indian equity market, equity advisors recognized as specialists who give advice to their clients in building investment portfolios, trading recommendations, and make smart investment decisions.
Basically, they are advisors who provide fair guidance and knowledge to the investors and traders in selecting the right equities to invest or trade in. There was a time when only a handful of investors opted for equity advisory services but given the current fluctuation in the equity market (or stock market), equity advisors come out as experts in process risks and rewards of each investment option of a person.
But that’s not all!
If you dig deep then you will realize that there is a lot more to this than meets the eye.
In this article, we’re going to explain the key responsibilities and the main role of equity advisors in the Indian equity market.
Why the need of Equity Advisor?
There are plenty of key investment options in India to this date but one thing we can all agree upon is equity beats them all. It is the asset class that can give potential returns in both a long-term and short-term basis. But, without proper guidance, many investors lost in the path of wealth creation.
Sometimes, investors lured by the short-term gains and failed to build wealth over time. On the contrary, they end up losing most of their hard-earned money in picking the wrong investment. As a result, instead of learning from mistakes, they become fearful due to short-term volatility and losses. But, we cannot blame a beginner to make wrong investment decisions but to avoid it by giving the right guidance.
We can go for the equity advisory services to allow the equity advisor to guide us in choosing the right stocks for investing or trading. At least, it would be nice to have a professional by our side instead of takings stock market tips from friends, family members & relatives, and ‘so-called’ well-wishers.
There are thousands of companies are registered and listed in exchanges. So, without professional help, it is not easy to find the right stock for investing. On top of that only thousands of stocks are not the major concern. The major concern is the fluctuation in the stock prices of such companies stock due to the constant bombardment of news from politics, business, industry, global stock market, and various economic indicators that affects the market on every possible level.
So, on his/her own, it is not possible for an investor to figure out all and depicts what to do next.
But, that’s not all. Even experienced investors use equity advisory services. It is because the busy lifestyle leaves only a few people to do the market analysis. Otherwise, most people couldn’t find time to do the analysis on their own end. Besides, it is natural for a working-employee to work on the financial statements, fundamental analysis, tracking past records of companies, and news-based stock picking.
Key Responsibilities of Equity Advisor
The equity advisor is not only responsible for assisting in picking the right stock to invest but also in providing guidance in asset allocation, entry, and exit timings, and among other things.
Wealth doesn’t build just by picking the right stocks and forget for years. It is built by picking the right stocks, book profits at the right time, and manage the portfolio as per the performance of the stocks. And a good equity advisor understands this.
Equity the advisor is familiar with the volatility of the equity market (bullish, flat, and bearish) and knows every aspects of research. They can advise you to invest or trade in the right stocks and make smart decisions. A real equity advisor will not promise you the unlimited wealth but help you in meeting your financial goals and realistic expectations about the risk and reward of each investment option.
Most of all, he can help you to avoid the common mistakes done by the beginner investors who enter the market on their own.
Final Thoughts: -
Unfortunately, many investors and traders fail to see the potential and benefits of having an equity advisor beside them. They believe that it is a waste to pay thousands of rupees with no reason. However, they are ok with losing lacs in making wrong investment decisions. Here, we believe that having an equity advisor by your side can help you understand the various factors that affect the economy, stock markets, and ultimately your investment portfolio.
For instance, you know it is important to eat better, eat less, and exercise more to stay healthy but it is your instructor that helps you in re-shape. Similarly, a equity advisor help you make the right choices while investing or trading in stocks.