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Everything You Need To Know About Financial Advisors

Confused about all the types of financial advisors? Read this blog to know exactly what each financial advisor does.
November 5, 2020

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Investors are often confused about the various types & roles of financial advisors. It’s crucial to know whom to approach to help you make the right choices. But the confusion ends here! We’ve created an article that walks you through the role of various financial advisors so that you can make an informed decision. To begin with, let’s understand who is a financial advisor.   

Who Is A Financial Advisor?

A financial advisor helps you manage your money. This is an umbrella term used to describe wealth advisors, stockbrokers, financial planners, Robo-advisors, and wealth coaches.

What Does A Financial Advisor Do?

A financial advisor uses their expertise & financial intelligence to recommend investment options that work for you. Among other things, they also help you save taxes, pick the right insurance schemes, invest in real estate, and plan your estate.

6 Types Of Financial Advisors

It’s easy to assume that anybody who gives you financial advice is a financial advisor. But the truth is far from it. A financial advisor has to be professionally certified or build a legacy of delivering capital growth (at times, both). So let’s take a look at the broad types of financial advisors:

1. Investment Advisor

An individual or firm who helps you invest in various assets. Usually charge a fee that is a % of the AUM ( Assets Under Management).

2. Investment Representative

Bank or investment firm employees. (Usually sell organization-specific investment products.)

3. Mutual Fund Representative

Bank or fund house employees authorized to recommend & sell mutual funds. (Usually recommend options specific to a fund house.)

4. Financial Planner

Creates strategies to help you achieve your financial goals. Broad level recommendations that include passive income generation and other such avenues. (May take on other responsibilities depending on your needs.)

5. Personal Banker

Bank employees who open new accounts, sell financial services and resolve customer queries. (Usually recommends products that align with their targets alone.)

6. Insurance Advisor

Consultants or employees from insurance organizations who help you choose the right insurance schemes. (Once again you will be required to take their advice with a pinch of salt)

What’s The Difference Between Financial Planners And Financial Advisors?

A financial advisor aligns your portfolio in line with your goals. A financial planner understands your goals & creates strategies.

A financial advisor can be a:

  • Stockbroker
  • Wealth Advisor
  • Wealth Coach
  • Registered Investment Advisor

On the other hand, a financial planner can be a:

  • Certified Financial Planner (CFP)
  • Chartered Financial Analyst (CFA)
  • Chartered Financial Consultant (ChFC)

There are many different designations, roles and certifications that a financial advisor or planner can hold. At times, a financial advisor & financial planner may do the same thing interchangeably. More often than not, a financial planner may be a type of financial advisor but the opposite may not be true.

Should You Get A Financial Advisor?

A financial advisor offers the benefits of industry experience & domain-specific knowledge. So if you’re a busy professional who would rather have an expert handle their money, a financial investment platform such as Cube Wealth could be exactly what you need.


But it’s important to understand your current financial health before you decide to go for a financial advisor. We recommend that you consult our wealth coaches before making a decision. You can download the Cube Wealth app to check out what other Cube users have to say about the simplified wealth creation experience.  

Shriram Shekhar
Shriram is a Consultant at CubeWealth. He has developed cutting edge IT products for over 2 years before turning to his passion for the written word. His love for philosophy, developing products, and empowering people through quality content is what got him to CubeWealth.

Top 4 Reasons To Try Our Powerful Investment App!

Schedule a call based on your convenience. And get an expert to help you invest.

  • High Quality Mutual Funds
  • Top Notch Stock Advisory
  • Expert Financial Advisors
  • Alternative Investments

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