Want to be a financial advisor? Here’s how
Subscribe to enjoy similar stories. Becoming a financial advisor isn’t just about crunching numbers—it’s about navigating regulations, building trust, and offering solutions that resonate with clients. For those ready to step into this challenging but rewarding field, there are three key paths: obtaining a Mutual Fund Distributor (MFD) licence, registering as a Sebi Investment Advisor (RIA), or qualifying as a Sebi Research Analyst (RA).
Each route offers distinct opportunities and challenges, shaping your role in India’s financial ecosystem. Read this | Can a professor, lawyer or doctor give investment advice? Sebi has a plan While this article outlines the key aspects, it is advisable to consult an expert before applying for a licence, as the information provided is illustrative, not exhaustive. An MFD cannot provide comprehensive financial or investment advice.
Their role is limited to offering 'incidental advice', a term the regulator defines as, “basic advice pertaining to investment in mutual fund schemes limited to such schemes/products being distributed by him to his client." They cannot provide comprehensive financial or investment advice. While some MFDs may act as financial advisors, drafting financial plans or advising on various financial products requires an RIA licence. Registered investment advisors, meanwhile, provide holistic financial planning.
From selecting mutual funds to estate planning, the scope of their advisory is vast. However, any advice outside the purview of the Securities and Exchange Board of India (Sebi), such as tax planning, must include a disclaimer. RIAs can specialize and charge fees upfront, detailing their services.
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