If you ask ten households in Faridabad about their methods of financial planning, you will get ten different responses. One puts most of its savings into fixed deposits. Another household purchased three LIC plans years back but did not do anything since then. A third household has a few mutual funds on the advice of its friends on WhatsApp. Every household is doing something, but hardly any are sure about how it all comes together.
This is precisely the reason why many households are seeking for the best financial planning firm in Faridabad. What these households need is not another sales talk; what they require is an expert who will consider all aspects, including sources of income, financial goals, insurance, taxes, and retirement, and come up with a well-defined roadmap. Here is what such firms do, how to assess them, and what to look for before committing yourself to them.
Why Faridabad Families Need a Proper Financial Plan
Faridabad is an industrial town with the presence of a large number of businessmen, manufacturers, traders, salaried people and NCR workers. This leads to the generation of some unique financial circumstances:
- The businessman faces the problem of fluctuating cash flows and has a blend of personal and business finance.
- The salaried person earns regular income but lacks proper investment planning except for the EPF and some tax-saving schemes.
- A family that has children sees increased cost of education and requires a plan and not just a savings account.
- A family that is close to retirement fears that the money might run out and fears the problem of inflation.
Each case requires a unique approach, and a general advice of “investment in this fund” cannot solve these problems. This is where financial planning comes into play.
What Does a Financial Planning Firm Actually Do?
This financial planning organization does not only sell financial products. A competent one follows this process:
- Analyzing your scenario. Sources of income, sources of expenditure, debts, investments, insurance coverage, family obligations.
- Setting objectives. It could be education of your child, buying a house, retirement, expansion of business, financial freedom.
- Designing a financial plan. Proper asset allocation, amount of money to be invested monthly, and proper mix of protection and growth.
- Implementing the plan through mutual funds, SIPs, insurance and other products.
- Reviewing it regularly due to life changes, market fluctuations and changes in objectives.
The order of steps is important. Most often, people go for the last step without having done the first three steps at all. That is how they get into trouble with poorly coordinated portfolios.
7 Things That Define the Best Financial Planning Firm in Faridabad
While selecting a financial planning firm in Faridabad, one should look for the following seven points.
- Goal-based financial planning
The best financial planning company in Faridabad would discuss your goals before talking about profits. If the first discussion is about “which mutual fund is providing 20%”, then immediately leave the discussion. The plan should be created around your objective.
- Proper credential and regulatory compliance
Inquire about registrations and certifications. A mutual fund distributor or an advisor in India follows certain guidelines under SEBI and AMFI regulations, and certified professionals are those who clear recognized examination. A company which speaks about their credentials will definitely gain your confidence.
- Honest about earnings
All companies earn in some way, through commission, fee or both. A reliable company discloses upfront on how it earns.
- Protection and investments
True financial planning is more than just investing in mutual funds. It must also involve health insurance, term insurance, and planning for retirement along with investments. An incomplete planning program means that your family remains unprotected in case something happens.
- Customization
Two families with identical incomes may have very different financial requirements. A customized plan should never look like a mere template and if it does, it is.
- Reliable technological support
You must have access to your portfolio at all times – from checking performance to reviewing your asset allocation. Make sure the financial planning firm you choose has an actual online portal and reporting mechanism.
- Long-term relationship
The markets fluctuate, so do your needs. This means that the top-rated financial planning firm in Faridabad is always ready for follow-ups, reviews, and rebalancing of your portfolio.
Common Mistakes People Make When Choosing a Financial Planner
Some common mistakes include:
- Looking for last year’s performance. It does not mean the fund will perform in the same way this year. Planning should be about consistency and suitability, not trophies.
- Combining insurance and investments. Purchasing an insurance policy purely on “returns” usually results in being under-insured and under-invested.
- No emergency fund in place. Without having at least three to six months of expenses set aside, a single bad month can result in the need to liquidate long-term investments.
- Failing to consider taxes. Any tax saving done in haste in March is unlikely to align with your overall plan.
- Doing things alone. Some people can manage their finances alone. However, those who find themselves procrastinating and following tips on social media would benefit from consulting a professional.
Why Athworth Wealth Is Worth Considering
For individuals shortlisting a financial planning firm in Faridabad, Athworth Wealth should definitely figure high on their radar. Athworth Wealth Pvt Ltd describes itself as a firm offering financial services and solutions in investment and advanced technology, which is located in Delhi NCR and has an office in Faridabad.
The following features make it unique:
Personalized and one-on-one approach. The financial planning offered by Athworth includes personalized consultations for the purpose of devising a plan according to your long-term goals. Based on an evaluation of your current position, risk appetite, investment tenure, and life events like buying a house, child’s education and retirement, they create a portfolio according to your goals.
A broad range of products under one roof. Unlike sending you to three separate providers, Athworth offers a whole range of services including mutual funds, PMS, pension/retirement planning, child future planning, and all kinds of insurance services such as health, term, life, motor, and commercial insurance. It makes easy for them to come up with a consolidated plan.
Portfolio management and relationship manager. The above mentioned ‘continues relationship’ point is supported by the portfolio management and relationship manager service from Athworth.
Technology-based tracking. Clients can track portfolio performance, look at asset allocation reports, and handle SIP top-ups using an online portal without the need for repeated phone calls.
Suitable for various types of investors. New investors who want to start SIP, entrepreneurs, people looking for a regular income in retirement, and even high net worth individuals will find something suitable.
Not every company will suit everyone, but a good initial meeting will give you the answers. However, for someone who wants planning-oriented service over product-oriented service, Athworth is a great choice.
How to Get Started
There is no need for lots of money or a thorough knowledge of the market to begin with. The basic process for getting started is as follows:
- Enumerate your aims and assign approximate time frames and amounts to them.
- Gather your numbers – income, monthly expenses, EMIs, current investments, insurance policies.
- Schedule a consultation meeting with your financial planner and be forthright with him about everything.
- Examine the recommended plan and ask yourself why each recommendation is there and how much it costs.
- Begin with regular SIPs and then move on from there.
Frequently Asked Questions (FAQs)
How do I find the best financial planning firm in Faridabad?
Seek goal-oriented planning, certification, transparent pricing, insurance along with investments, and review of the plans. Visit at least two to three firms and analyze how they question as well as answer. The good firms listen first.
What is the difference between a financial planner and a mutual fund distributor?
The main role of a mutual fund distributor is to help you invest in and manage the mutual fund schemes. A financial planner focuses on all your financial needs, from your financial goals, taxes, insurance, and retirement planning. Most companies, like Athworth, provide both services.
How much money do I need to start financial planning?
The plan does not have any predefined minimum starting point. People usually start with a small SIP per month. The important thing is that one must start at an early stage and remain consistent, and the money amount should be increased as one’s income increases.
Is financial planning only for wealthy people?
No. Salaries professionals, new investors, and young families are the ones who can gain the most from this approach. PMS is an option that wealthier clients might consider, but the principles remain the same for all of them.
What services should a good financial planning firm offer?
Minimum Services Include: Planning towards goals, advice on Mutual Funds/SIPs, insurance planning (health and term), retirement planning, and periodic review of your investment portfolio. Other additional services include PMS, child future planning, and tax planning.