How to Find a Financial Advisor? Everything You Need to Know

Updated on 13 May, 2025

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Financial awareness in India is increasing steadily, but there is still a considerable gap. Surveys reveal that 88% of Indians fear financial instability over the next five years, and 80% have little clarity on how to plan for retirement. Many don’t have sufficient emergency funds, and some struggle with tax planning.

The internet is flooded with information, some helpful, some misleading. With so much advice out there, finding trustworthy guidance can be a challenge. That’s why selecting the right financial advisor is so important.

So, how to find a financial advisor? Let’s check out.

Who is a Financial Advisor?

A financial advisor offers broad-based financial advice to help you manage your money better. This can include investment guidance, tax planning, insurance, retirement, budgeting, and more.

In India, however, only those registered with SEBI as Investment Advisers (RIAs) can legally provide personalised investment advice, particularly on securities, for a fee.

SEBI RIAs act in the best interest of their clients and offer personalised advice after considering their goals and risk profile. They can only earn money through fees you pay them, not from selling products.

In India, professionals like Chartered Accountants (CAs), Certified Financial Planners (CFPs), and similar professionals can also offer financial advice once registered with SEBI as RIA.

But remember, mutual fund distributors can only sell mutual funds and provide incidental advice (advice based on the investor’s basic profile or based on facts and features of mutual funds). They earn commissions from mutual fund houses. They are registered with Association of Mutual Funds in India (AMFI) and often work with multiple fund houses.

How to Find a Financial Advisor?

Many people ask how to choose a financial advisor. Choosing a financial advisor is not a tough task. Here are five points to consider.

1. Assess What You Need

Ask yourself what financial help you want. Is it basic investment guidance, tax planning, retirement planning, or complete money management? Your needs will narrow down which advisor makes sense.

2. Understand Fee Structure

It is vital to grasp how SEBI RIAs get paid.

SEBI has laid down clear rules on how much RIAs can charge their clients. RIAs can choose one of two fee structures:

AUA-based fee – charging a percentage of the client’s total Assets Under Advice (AUA), capped at 2.5% per year per client.
Fixed fee – charging a flat amount, which cannot exceed ₹1.25 lakh per year per client.

RIAs must follow only one of these models per client and disclose it clearly in advance.

3. Check Credentials and Experience

Verify whether your financial advisor is registered with SEBI. You can verify that by checking the SEBI website.

Also, ask about their experience, education, and certifications, such as CFP or CA. If possible, check their track record with past clients.

4. Evaluate Investment Philosophy

A good advisor’s approach should match your goals and comfort level. Ask how they handle market drops, what investment types they favour, and how they measure success. Their answers show if they will be a good fit.

5. Make Your Decision Based on Fit and Trust

Beyond credentials, you need someone you can trust. They should explain things clearly without pushing you to decide quickly. Trust your gut feeling. If something feels strange, keep looking.

Red Flags to Avoid While Choosing a Financial Advisor

Before you choose an advisor, consider these red flags to avoid:

Anyone promising fixed or guaranteed high returns is a red flag. No honest financial advisor will promise specific returns, especially above market averages.
If a financial advisor is vague about how they make money or says their service is “free,” be careful. Good advisors clearly explain all costs.
Always check if they are registered with SEBI.
Watch out for product push tactics or a rush to sign up. Good advisors give you time to think things through and welcome questions.

Conclusion

Finding the right financial advisor takes research but pays off through better financial decisions. Start by knowing what help you need and which advisor type fits that need. Once you are clear with your needs, check their credentials and understand how they charge.

Steer clear of advisors who make big promises, hide their fees, aren’t registered, or are too pushy. This way, you can find someone who can genuinely help you with your finances.

FAQs

How do you find a good financial advisor?

To find a good financial advisor, assess your needs, understand the advisor’s fee structure, and evaluate their knowledge and investment philosophy.

What is a typical fee for a financial advisor?

SEBI RIAs can charge a fixed fee or based on assets under advice. Also, SEBI has laid down clear rules on how much RIAs can charge their clients.

Is it worth paying for a financial advisor?

Yes. The right financial advisor will understand your needs and risk profile and suggest a personalised financial plan. This will help you reach your financial goals faster.

What is a red flag for a financial advisor?

Any financial advisor promising a high or guaranteed return or trying to push product sales could be a red flag.

How to verify a financial advisor?

To verify a financial advisor, check their credentials or registration. For RIAs, check SEBI’s website for their registration.

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