No don’t close your eyes , please keep them wide open , know which roller coaster you have been on-boarded and who has done it and who enjoys the ride .
Regulators globally is talking about conflict of interest in Investment Advice , the reason is straight and simple who is enjoying the ride at whose cost . Lot of questions are never asked and never answered and when tides are against and investors realise that they have been on-boarded on a wrong roller coaster , the right questions are often asked when its too late .
As investors you should always ask the right questions before you on-board . Often we see analogy of roller coaster and that it asks you to close your eyes during the ride if you feel uncomfortable , wasn’t this discomfort known through a licensed risk profiling test , whose risk profile is the investor following and why should he follow someones else risk profile , is responsible advising all about on-boarding , no its all about the right on-boarding where the discomfort should not test the limits where you will be asked to close your eyes . If this is what someone is asking you to do please educate yourself what to expect and how to expect before its too late .
First step is to get counselled on your asset allocation from a registered investment adviser who completes your risk profiling through a licensed tool , please resist from using free tools available , regulators in India has also clearly spelled out the need to have an authentic tool to be used for this purpose .
Second step is to match your current portfolio with the interpreted results .
Third step is to correct the mis-allocation as soon as possible , to ensure that you keep your eyes wide open during the journey and not asked to close your eyes .
Follow these three simple steps you are home . Be responsible for your own welfare , understand your life stage , understand your goals , have conversations to clarify your thoughts . Robos won’t do this for you , humans will but do your homework before you select the right human who will put your interest first . In India regulations are catching up to do exactly this for you , put clients interest first .