Question

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 at a reputable bank,I would be asking various questions to the customers and they are as follows-

A.I'll be asking questions about duration of the investment whether he wants to invest for the short-term or the longer period of time.

B.I will also be asking him about risk appetite and risk preference along with the rest tolerance of the prospective investor.

C. I'll also asking questions about objectives and goals related to the investment.

D.I'll also ask him about his total diversification capability in different asset classes and his preferable asset class.

E. I will also ask him the overall amount of money he is going to invest into the market.

When it comes to offering advices I will be offering him various advices as follows-

A.I will be advising him for investing into stocks for the longer period of time in order to gain from the compounding.

B.I will also advised him to not follow the herd and always try to follow his own analysis.

C.I will also advise him to diversify his portfolio according to the risk appetite of the individual.

D.I will be advising him for proper risk management and not reacting to the rumours which are present in the market and staying true to the fundamental course of action.

E. I will also advise him for investing into the different market cycles and not get afraid by down cycle.