When you need to invest money, how do you go about it ?
You will either Google for information, ask your friends or parents or refer to personal finance magazines. Very seldom do folks approach a Personal Finance Advisor or Financial Planner.
Now, let’s look at some other scenarios in life.
What do you do when you fall sick, or need to get your car fixed, or need a legal issue resolved?
You again Google for information or ask your friends and family – But this time, there is a difference. This time, you look for a professional (either a doctor, lawyer or mechanic) who can help you resolve your issues.
So if you look for professionals in other aspects of your life, why don’t you do the same for managing and growing your money better.
There is no single answer for this and there are a couple of reasons for this behaviour:
1.) DIY Approach: While none of us are formally taught to manage or grow our money in either school or college, we do pick up some basics along the way. Also, since money is a very personal issue, most of us tend to look for information and manage it on our own. Sometimes it works and sometimes misinformation can play havoc (especially if you invest directly in the stock market based on tips)
2.) Trust: There is a severe trust deficit in market when it comes to investing. This is primarily on account of Insurance salesmen / agents masquerading as advisors and mis selling products. We have heard of old folks being sold expensive ULIP plans which have severely destroyed people’s wealth. Banks also aggressively push products which tend to make them more money than for the client.
3.) Misinformation: There are a lot of myths and misinformation floating around when it comes to money. E.g. Most folks don’t know the difference between an Absolute and annualized rate of return. Or how inflation can destroy your wealth over time. This is one reason why a lot of folks either just let their money lie in a savings account or put it in FDs. A lot of people also seem to rely in ‘Govt. guaranteed’ instruments which usually don’t deliver the best returns.
4.) Time: Managing and growing is usually the last item on a person’s priority list because we are so caught up in earning more money that we tend to ignore growing our existing money. Also, since the world of finance seems ‘complex’ with a lot of jargon that we don’t understand, we usually end up putting investing on the back burner.
To solve these problems, Finqa was started. Finqa is short for Financial Questions Answered and a team of highly experienced professionals provide personalized, fee based financial advisory and Investment execution services.
The start-up’s approach is to first educate the clients about the various aspects of investing (E.g most folks don’t know about the different asset classes and portfolio diversification)
At Finqa, the team creates a plan which is tailored to an individual’s needs instead of generic advice. After a client has fully understood the plan and knows exactly where their money is being invested, Finqa initiate investments directly into various products.
“We are also unbiased – What this means is that you can choose to just pay for advice from us and invest directly on your own if you wish. However, based on our past experience most clients prefer a single point of contact for all their personal finance and investment needs which we provide at Finqa,” says Abhik Prasad, Co-founder.
The concept of financial planning is pretty new in India – and the practice of paying for financial advice even less prevalent.
To make is easier for the clients, Finqa have just two very simple and affordable plans.
The Guidance plan at Rs 1000 is suited for those with simpler investment needs or with an annual income of upto Rs 10 lakhs.
The Investment Plan at Rs 10,000 is for those who require an enhanced level of Private Advisory services.
In the age of technology where pundits are touting automated robo advisors for managing your money on an automatic basis, Finqa’s approach includes a model where you can talk to a live person to get all your questions answered.
So yes, if you have been looking for a Personal Finance Advisor to help you grow your money, give the folks a call at Finqa.