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The Role Of Mutual Fund Investment Advisors

Read this to know more about the role of a mutual fund investment advisor. Understand why you need an investment app like Cube.
November 5, 2020

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The rise of mutual fund advisors can be directly attributed to mutual funds becoming a popular investment option in India. Mutual funds offer benefits such as professional management, diversification, liquidity, among others. We’ve all seen the #MutualFundsSahiHai ad on social media and TV.  But how do you know #KausaMutualFundsSahiHai? 

There are thousands of mutual fund variations to pick from but not all of them can help you achieve your goals. This is where a mutual fund investment advisor can be pivotal to your investment goals. 

Who Is A Mutual Fund Advisor?

A mutual fund advisor is a licensed professional who knows mutual fund schemes like the back of their hand. National Institute of Securities Market (NISM) is the only institution authorized to certify mutual fund advisors in India. Wealth First, Cube’s wealth advisory partner, is one of the best mutual fund advisors in India.

Mutual fund advisors should recommend investment plans according to your financial goals. But a mutual fund representative working for a bank or fund house may try to sell you funds specific to the fund house depending on their sales target. A good mutual fund advisor has 3 defining characteristics:

  1. Subject Matter Expertise 
  2. Superior Industry Knowledge
  3. Client-oriented
Investment Tips
5 key things an MF advisor does

What Does A Mutual Fund Advisor Do?

A mutual fund advisor handles the following roles & responsibilities:

1. Investment Strategy

A one size fits all approach cannot work for every investor. So most mutual fund advisors create an investment strategy based on your age, salary, goals, risk appetite and financial health. 

For example, if you’re an aggressive investor: Equity funds. But if you want to play it safe: Debt funds. You have surplus money sitting idle in a bank savings a/c: Liquid funds. But this is just a broad example since this can vary from investor to investor based on several other parameters.

But wait… How do you know your risk level? If you’re investing through an app like Cube, we will help you find your risk level (we have a tool for this on the app) & then guide you based on the perfect portfolio approach.

2. Knowledge Transfer

The advisor should tell you everything you need to know about schemes you’re investing in, switching between lump sum/SIPs/STPs, redemption, and eventually, the performance of your investment.

Now you have an investment strategy & investment knowledge. But the wealth creation journey doesn’t end there. The real magic lies in executing the investment strategy.

The mutual fund advisor teaches you how to stick to the investment plan. But more importantly, the best mutual fund investment advisors tell you when to sell a fund. Investment apps like Cube allow you to automate your investments. This can take away a lot of stress.

3. Diversification

It’s important to spread out your investment risk to maximize the profits. That’s exactly what a mutual fund investment advisor helps you do. Based on the analysis of several qualitative and quantitative parameters, the advisor tells you how to allocate your capital into multiple mutual fund schemes across geographies & sectors.

4. Documentation

Mutual funds are strictly regulated by the Securities and Exchange Board of India (SEBI).  Thus, a fund advisor keeps a record of the service they provide ranging from invoices, transaction records, client details, etc.

Apart from this, a mutual fund advisor has to regularly check regulatory information, developments in the mutual fund industry, market fluctuations, economic conditions, and so on.  Some fund advisors also like to keep an eye on what the portfolio managers are saying. 

Why Do You Need A Mutual Fund Advisor?

Navigating through multiple fund options can be a cumbersome task especially if you’re pressed for time. So busy professionals often save time & invest in funds after consulting a mutual fund advisor. Ideally one with a consistent track record like Cube’s mutual fund advisory partner, Wealth First.

But even if you have time to spare on market research & fund navigation, there’s always something of value to be learned from a professional who lives & breathes mutual funds.

Laws such as ‘Fiduciary Duty’ are in place to ensure ethical compliance. So if you’re worried about being conned,  remember the law and its finer details: 

  1. The advisor must disclose all details about an investment. 
  2. The advisor must avoid conflict of interests 
  3. The advisor must keep a record of any commission received for recommending investments.
Investment Facts
Handpicked mutual funds on Cube Wealth

How To Find The Best Mutual Fund Advisor?

The best investment advisors do not guarantee overnight wealth or suggest any get-rich-quick schemes. They are industry experts with a solid understanding of mutual funds.

For perspective, our mutual fund investment advisor, Wealth First, has a consistent historical track record of beating the average mutual fund by 50%. They have 3,000+ clients and an AUM of ₹7,000+ Crores. Plus, WF curates a list of the best mutual funds for Cube users every month!

Talk to our wealth coaches today for a financial checkup of your portfolio. If you want to invest in curated funds based on your needs, download the Cube Wealth app today.

Watch this video to know more about Cube's mutual fund advisory partner, Wealth first


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.

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