Why investment clients need you

What message do advisers give clients when they're constantly changing funds within portfolios? Jaskarn Pawar argues advisers need to make steadfast decisions to be trusted by investors.

Why investment clients need you

I have always found it disturbing throughout my career the number of times I see fund switch recommendations go out to clients. I know things change in the world of investing, but as professionals surely we make decisions that are good enough to stick with?

I genuinely believe that our job as financial and investment advisers is to instil discipline into the investment process. My interpretation of behavioural finance tells me that if you invest your own portfolio you are going to find it extremely difficult to remove emotion, greed and fear from the decision making process. We as advisers can do that quite easily for clients and act as a barrier between them and bad decisions.

Discipline, an expert opinion, common sense, boringly steady. These are all benefits of a client using a financial adviser and in my view excellent value drivers in the relationship. The value of maintaining a disciplined investment strategy, staying the course when it gets a bit rough should not be underestimated by either side.

So, if that is our message and one of the key reasons behind any client taking on an adviser, then what message do those advisers give when they themselves are constantly changing funds within portfolios? After all most people who look after their own portfolio probably already do that. So if all you are doing is what they were doing, why would they need you?

What do you think? Let us know in the comments below

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