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Selecting Investment Advisors

This article is reproduced with permission from
Normandy Advisory Services Sdn. Bhd (Licensed Investment Advisor)
15th Floor Menara Multi-Purpose, No 8 Jalan Munshi Abdullah, 50100 Kuala Lumpur
Tel : 03 - 469 5560 Fax : 03 - 294 5561

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2. Quality research

An investment advisor should be well-supported by high quality research as it is important to justify recommendations on what to buy and sell. You would not want an adviser who gives you advice based on rumors or hearsay. A well-trained research team can also support the investment advisor in providing the latest info rm ation such as market trends and deal with questions relating to retirement, taxation and other issues. The research which is the key technical factor should be well-documented, consistent, and comply with professional standards. All in all, the quality of the research is the key success factor for any investment advisor.

3. Marketing support

An ideal investment advisor should provide a marketing support services such as the informative newsletters on a weekly or quarterly basis. Information bulletins will help you keep track of the progress of your investments. Some investment advisors conduct special meetings or investment awareness seminars for their investors and the public.

4. Competitive fees

Perhaps the key factor among the local investors when selecting an investment advisor is their fees. Are the charges reasonable? Does the advice justify by the cost? Investors may prefer to try to cope with all the clerical work associated with the entire investment planning process rather than bear the cost. However, it may not necessarily be the best solution if you cannot afford the time, effort to keep track of your investment. Devising investment plans for retirement for example is no easy task indeed. It requires dedication plus a lot of efforts and time to ensure the highest possible returns for ones hard-earned money. Some investment advisers produce various other extra services that are not easily available in order to distinguish themselves from others. Benefits of this nature usually comes with higher fees.

A sophisticated investor normally looks beyond the fees charged as the cheapest fee is not always the best. Good advice comes with a price and you should be prepared for it. The advisers should also disclose commissions or other related fees to be paid for their services rendered.

5. Track Record

The establishment of the investment advisor is another vital key. Is he or she licensed? Does he or she have any experience? Highly-skilled advisors with years of experience are normally favored by the investors. In short, competent investment advisers normally carry impressive credentials with them.

It is always recommended for individuals or specifically "don't-know-anything" investors to seek professional help to achieve a more "secure" and "productive" return. The same applies to knowledgeable investors who lack the necessary precious commodity called "time".

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Reproduced with permission from Normandy Services Sdn Bhd, Tel:603-4695560 Fax:603-2945561