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What Does An Investment Advisor Do?

Known as a financial nutritionist, the advisor’s role is precisely to help you set up your “financial diet.” In addition to answering your questions about each asset or class, your advisor will be a portal to keep you updated on what is most modern and in the market.

The financial advisor is your on-call specialist. He understands all investment-related matters and has the sole mission of maintaining your financial health.

Your Financial Advisor Needs You!

Just as a nutritionist does not prescribe the same diet for all of his patients, his financial diet also needs to consider all of his specificities.

To Get To Know You, Your Financial Advisor Needs You.

We’ve already agreed that more risk brings more return. Of course, the mission is to maximize your return. However, we need to do this without you taking more risk than you are willing; after all, one of the roles of the advisor and the broker is not to let the investor take too much risk.

Your risk profile is information that only you have and, if you have just learned about the types of risk, it is difficult to know for sure, imagine for your advisor. For this reason, it is recommended that you always share details of your financial life, your family, and your financial goals and always respond very seriously to all the broker’s questionnaires. So, in the long run, you tend to get more return on your investments and visit Investment Decision Platform to gain more insight on investing.

How Do You Make Money From Investments?

The minimum remuneration for your investments is the basic interest rate of the economy. You have already done what is necessary to guarantee access to this remuneration: open an account at XP Investments and stop investing with your bank.

To gain profitability above the interest rate, there is only one way: to take risks. The beginning investor may ask, “But I’m very conservative, and I don’t want to take risks.” Calm down. There are many forms of risk. For example, leaving money “stuck” is the consolidation of a risk called “liquidity risk,” and this in itself should already yield you something above the interest rate.

What Are The Investment Risks?

These risks act like nutrients in a diet, such as carbohydrates, proteins, water, and fat. Each person needs different amounts of each of the nutrients, but every balanced diet has a variety of them. Likewise, it is not interesting that the investor takes excessively any type of risk, but a portion of them, even if your final portfolio has little risk.

So Is Taking A Risk Good?

Yes! The greater the risk level of a portfolio, the greater its expected return. Does this mean I should take as much risk as possible? No, because the return is not everything. Note that in many moments over the 5 years, the portfolio with more risk accumulates lower earnings than the conservative one. She also spends long periods, several months, with losses or on the side. This means that if you need your money along the way, you may have gotten a bad deal.