There are close to 50,000 mutual fund distributors in the country, including those who work as sub-brokers for national distributors. There are close to 918 Securities and Exchange Board of India (Sebi) registered investment advisers (RIA). Even if you remove half of the latter, who are said to offer just stock tips, you are still left with around 450 RIAs. How do you choose the right distributor or investment adviser? Here are three questions you need to ask.
How do you choose investment products?
Understand how your distributor recommends mutual funds and other products. And understand the process. For instance, if the conversation starts with the adviser nudging you to buy a particular product, she could be just a product seller.
