Whos is an Investment Advisor?

Today I thought I will start writing investment and financial term in each Thursday for the money maniac readers. As a start, here is the meaning of the term “Investment Adviser” for readers.

We will look the term “investment adviser” mentioned in the Financial Dictionary first:

1. A person making investment recommendations in return for a flat fee or percentage of assets managed, known as a commission.

2. For mutual fund companies, it is the individual who has the day-to-day responsibility of investing and monitoring the cash and securities within the fund’s portfolio in order to achieve the fund’s objectives.

Here is a parallel explanation from Wikipedia:

An investment advisor (or investment adviser) is an individual or firm that advises clients on investment matters on a professional basis.They tend to fall into two distinct categories:

* investment advisors offering direct financial advice to individuals or businesses, or

* investment advisors offering asset management for (typically) corporate clients, hedge funds and/or mutual funds.

Depending on the nature of the relationship, investment advisors charge fees calculated as a percentage (e.g., 1%) of assets under management, on an annual basis, an hourly or on a “flat fee” basis.


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