Question

1. You are a financial advisor at a reputable bank. You are knowledgeable about the financial instruments including stocks and bonds. A customer made an appointment with you today to seek investment advice. What questions would you ask the customer, and what advice would you offer?

Answer 1

If I am a financial advisor I would be asking different questions to the potential investor like-

1. Questions about duration of the investment.

2. Questions about objectives and goals of the Investment.

3. Questions about asset classes he's preferring into invest.

4. Questions about the risk appetite and the risk tolerance of the customers.

5. Questions about amount of the money he wants to invest into the market.

Advices, I will be offering him would be as follows-

A.I would be suggesting him to decide upon the risk preference and then invest accordingly in stock and bonds.

B. I would be advising to invest into stocks, if his risk appetite is higher and if he wants to invest into the longer prospective.

C.I'd always suggest him to diversify his portfolio in order to manage through different market cycles.

D.I would also advise him not to react to the rumours in the market and stay true to the fundamental cause of action.

E.I will also advise him for a longer time frame of investment because it will help him in compounding his returns