What Does a Financial Advisor Do? Key Roles, Skills, and Career Paths Explained

Have you ever wondered how some people seem to have their financial future all figured out? Behind many successful wealth-building stories is the expertise of a financial advisor.

In India, nearly 70% of investors work with professional financial advisors—much higher than the global average. Why? The demand for personalised financial guidance is growing, making this career not just rewarding but also highly lucrative.

In this blog, you’ll dive into the roles and skills of a financial advisor, their day-to-day responsibilities, and explore career paths.  You’ll also learn the financial advisor salary prospects in this exciting field! 

Who Is a Financial Advisor and Why Is This Role Important?

A financial advisor helps individuals, families, and businesses achieve financial goals through expert guidance and strategies. From planning for retirement to building secure investments, they simplify complex decisions with personalized advice tailored to each client’s needs.

Aspiring to take on leadership roles in finance or become a trusted financial advisor? Enrol in a 100% Online MBA Program from top B-schools. Gain the expertise and flexibility to accelerate your career while mastering the skills needed to thrive in the financial world.

Now, let's explore the roles and responsibilities of a financial advisor. 

What Does a Financial Advisor Do? Key Insights

Financial advisors take on a wide range of responsibilities to assist clients in building and protecting their wealth. Here's an overview of their core functions:

• Assessing Clients' Financial Goals: For example, helping a young professional plan for buying a home in five years by creating a savings strategy.
• Developing Investment Strategies: Designing a portfolio for a client nearing retirement with low-risk bonds and stable dividend-paying stocks.
• Providing Tax Planning Advice: Suggesting tax-saving instruments like ELSS funds or NPS contributions to reduce taxable income.
• Managing Retirement Accounts: Guiding clients to maximize their 401(k) or PPF contributions for long-term retirement security.
• Educating Clients on Financial Matters: Explaining the benefits of compound interest to a client starting their first investment plan.

Types of Clients Financial Advisors Serve:

• Individuals: Assist with personal finance management, retirement planning, and wealth building.
• Families: Provide advice on estate planning, education funds, and multi-generational wealth management.
• Companies: Offer strategies for employee benefits, corporate investments, and risk mitigation.

Common Daily Tasks:

• Reviewing and monitoring client portfolios to ensure alignment with financial goals.
• Offering investment advice based on market trends and performance data.
• Buying or selling financial products such as stocks, bonds, or mutual funds.
• Meeting with clients to discuss progress, new opportunities, or changes in their financial situation.
• Staying updated on financial regulations, market conditions, and investment products.

In the next section, you will learn about the key skills that financial advisors must have to attain professional success. 

Also Read: Purpose of Financial Accounting: Function, Importance, Principles [2024]

Key Skills Every Successful Financial Advisor Must Have

To excel as a financial advisor, a combination of technical expertise and interpersonal skills is essential. Below are the key skills that every successful financial advisor must possess:

Financial Skills:

• A deep understanding of financial markets, investment options, tax laws, and retirement planning strategies.
• Financial advisors must evaluate market trends, provide sound advice, and create effective plans tailored to their clients' needs.

Strong Communication Skills:

• The ability to explain complex financial concepts in simple terms and actively listen to clients' concerns and goals.
• Effective communication builds trust and ensures clients understand their financial plans and decisions.

Client Relationship Management:

• Building and maintaining long-term relationships with clients by understanding their evolving needs and providing personalized service.
• Strong relationships foster loyalty and lead to repeat business and referrals.

Sales and Marketing:

• The ability to promote services, attract new clients, and cross-sell financial products while maintaining ethical standards.
• Sales skills are crucial for expanding the client base and growing the advisor's business.

Also Read: Corporate Tax: What is it & How It Works?

Next, you'll learn about the different types of financial advisors and how to choose one. 

Different Types of Financial Advisors and How to Choose the Right One

The financial advising industry includes various specializations, each catering to unique client needs. Understanding the different types of financial advisors helps clients select the right professional based on their goals.

Here is a look at the different types of financial advisors, their average annual salaries, and key features of such roles. 

Role	Average Annual Salary	Key Features
Certified Financial Planner (CFP)	₹4.5L	Specializes in holistic financial planning, including retirement, investments, and risk management.
Investment Advisor	₹8L	Focuses on managing investment portfolios and providing advice to grow wealth through stocks, bonds, etc.
Estate Planner	₹7L	Helps clients manage their assets, plan for inheritance, and ensure efficient wealth transfer.
Tax Advisor	₹5L	Provides guidance on tax-efficient strategies, compliance, and minimizing tax liabilities.

Source: Glassdoor 

How to Choose a Financial Advisor Path? Key Factors

Choosing the right financial advisor involves evaluating various factors to ensure their services align with your goals and expectations. Here are the key considerations:

Factor	Description	Key Considerations
Specialization	Expertise in specific financial areas like investments, tax, or retirement planning.	Match advisor’s expertise to your financial needs.
Qualifications	Professional credentials like CFP, CFA, or specialized certifications.	Ensure the advisor’s expertise and credibility.
Fiduciary Responsibility	Legal obligation to prioritize your best interests.	Provides unbiased, conflict-free advice.
Services Offered	Range of services provided, such as tax planning, wealth management, or estate planning.	Check for alignment with your financial goals.
Fee Structures	How the advisor charges—flat fees, commissions, or AUM-based fees.	Transparency and affordability of charges.
Client Reviews	Feedback from current or past clients regarding the advisor’s reliability and performance.	Indicates trustworthiness and client satisfaction.

In the next section, you can learn about how to start your career as a financial advisor.  

How Do You Start a Career as a Financial Advisor? Step-by-Step Guide

Building a career as a financial advisor involves building a strong foundation of education, skills, and certifications. Here's a comprehensive roadmap to help you get started and succeed in this rewarding profession.

Academic Prerequisites

To begin your journey as a financial advisor, obtaining the right educational qualifications is essential.

• Earn a Bachelor's Degree: Pursue a degree in finance, economics, accounting, or business administration to gain foundational knowledge of financial principles.
• Focus on Relevant Courses: Enrol in classes that cover investment strategies, taxation, risk management, and retirement planning.
• Consider Advanced Degrees: An MBA in finance or a master's degree in a related field can provide a competitive edge, especially for leadership roles.

Also Read: Which MBA Specialization Should I Choose? [List of Factors to Consider]

Develop Key Skills

A successful financial advisor needs a mix of technical and interpersonal skills to serve clients effectively.

• Build Analytical Skills: Learn to interpret financial data and market trends to make informed decisions.
• Enhance Communication Skills: Practice explaining complex financial concepts in simple terms for clients.
• Cultivate Interpersonal Skills: Develop the ability to build trust and strong relationships with clients.
• Strengthen Problem-Solving Abilities: Be prepared to create personalized solutions for diverse financial challenges.
• Problem solving skills are a valuable asset in a finance career. Hence, consider signing up for the Complete Guide to Problem Solving Skills course. 

Also Read: What is Interpersonal Communication? Meaning, Skills, Types with Examples

Acquire Practical Exposure

Hands-on experience is crucial for understanding the intricacies of financial advising.

• Internships: Gain exposure through internships at banks, investment firms, or financial advisory companies.
• Entry-Level Roles: Start as a financial analyst, client associate, or junior advisor to learn the ropes.
• Network with Professionals: Attend industry events and join professional organizations to build connections and gain insights.
• Learning about the fundamentals of business communication is crucial to ensuring success in a financial advisor career. Sign up for MICA's Advanced Certificate in Brand Communication Management course to get acquainted with effective business communication strategies. 

Attain Industry Certifications

Certifications add credibility to your profile and demonstrate expertise in specific areas of financial advising.

• Certified Financial Planner (CFP): Focused on comprehensive financial planning, covering investments, taxes, and retirement.
• Chartered Financial Analyst (CFA): Ideal for those interested in portfolio management and investment analysis.
• Certified Investment Management Analyst (CIMA): Best suited for advisors working with high-net-worth clients.
• Licensing Requirements: Depending on your location, obtain necessary licenses like the SEBI-Registered Investment Advisor (RIA) license in India.

Also Read: Importance of Financial Planning: Definition, Importance, Types, Steps

Let's now explore the potential financial advisor salary packages and career growth opportunities you can expect in this field.

Financial Advisor Salary and Career Growth in 2025

Financial advisors are increasingly sought after in 2025 as more individuals and businesses seek expert financial guidance. This means that you can expect to have a lot of working opportunities as a financial advisor. 

Factors Influencing Financial Advisor Salaries

Here is a look at some of the factors that can determine your financial advisor salary. 

1. Experience Level: Senior advisors with years of expertise command higher salaries compared to entry-level professionals.
2. Certifications: Credentials like CFP or CFA boost earning potential by demonstrating advanced expertise.
3. Client Base: Advisors catering to high-net-worth clients or businesses often earn more financial advisor salary due to higher fees and commissions.
4. Location: Salaries in metropolitan areas like Mumbai, Bangalore, Pune and Hyderabad are typically higher due to greater demand and higher living costs.
5. Specialization: Advisors focusing on investment management or estate planning often earn more than generalists.

Average Annual Financial Advisor Salary by Experience Level

Experience Level	Average Annual Salary
Entry-Level (0–3 years)	₹5L
Mid-Level (3–7 years)	₹9L
Senior-Level (7+ years)	₹13L
High-Net-Worth (HNIs) Specialist	₹22L

Source: Glassdoor 

Other Financial Roles Similar to Financial Advising

Several roles share similarities with financial advising, offering opportunities to explore related career paths. These roles involve client management, strategic planning, and financial expertise but differ in focus areas.

Here is a closer look at some of these roles, and the education requirements, professional responsibilities and average annual salaries associated with them.

Role	Education	Responsibilities	Average Annual Salary
Insurance Broker	Bachelor’s degree in finance, business, or related fields. Certifications like IRDA license.	Advises clients on selecting insurance policies and risk management solutions.	₹7.5L
Debt Manager	Bachelor’s degree in finance or business administration. Certification in credit analysis preferred.	Helps clients manage and reduce debt, negotiate terms, and plan repayment strategies.	₹6.5L
Estate Planner	Bachelor’s degree in law, finance, or business. CFP or legal certifications	Guides clients in asset distribution, inheritance planning, and minimizing tax liabilities.	₹11L

Source: Glassdoor 

Also Read: Financial Advisor Salary in India in 2024 [Average to Highest]

Finance degrees like a Bachelor's in Economics and an MBA can prepare you for a rewarding career as a Financial Advisor. Find out how upGrad can help you with that. 

How upGrad Can Support Your Financial Advisor Career?

Studying for a career as a financial advisor can help you cultivate the necessary skills you should have to serve your clients diligently. At upGrad, you can find a wide range of finance and management courses that are just apt for a career as a financial advisor. 

Here are some of the popular courses: 

• Master’s Degree in International Accounting and Finance  (Integrated with ACCA)
• Professional Certificate Program in Financial Modelling and Analysis in association with PwC Academy
• LL.M. in Corporate and Financial Law (Blended Learning Program)
• MBA from O.P. Jindal Global University
• Post Graduate Diploma in Management (BIMTECH)
• MBA from O.P. Jindal Global University-Career Acceleration Program
• MBA in Business and Law from O.P.Jindal Global University
• Advanced General Management Program

Are you thinking of discussing your future career plans with a professional consultant who can help you choose the best financial advisor course? Why not book a free career counseling session today with upGrad’s experienced career experts? That way, you can plan your future career growth and achieve your highest potential. 

Elevate your leadership potential with our Popular Management Courses, designed to equip you with strategic insights and practical skills for career advancement.

Reference 

https://www.fintoo.in/blog/evolving-landscape-of-financial-advisory-in-india/ 

https://www.glassdoor.co.in/Salaries/certified-financial-planner-salary-SRCH_KO0,27.htm 

https://www.glassdoor.co.in/Salaries/investment-advisor-salary-SRCH_KO0,18.htm 

https://www.glassdoor.co.in/Salaries/tax-advisor-salary-SRCH_KO0,11.htm 

https://www.glassdoor.co.in/Salaries/financial-advisor-salary-SRCH_KO0,17.htm