What Does a Financial Advisor Do? Key Roles, Skills, and Career Paths Explained
Updated on Dec 23, 2024 | 7 min read | 1.6k views
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Updated on Dec 23, 2024 | 7 min read | 1.6k views
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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!
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.
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Now, let's explore the roles and responsibilities of a financial advisor.
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:
Types of Clients Financial Advisors Serve:
Common Daily Tasks:
In the next section, you will learn about the key skills that financial advisors must have to attain professional success.
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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:
Strong Communication Skills:
Client Relationship Management:
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Next, you'll learn about the different types of financial advisors and how to choose 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
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.
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.
To begin your journey as a financial advisor, obtaining the right educational qualifications is essential.
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A successful financial advisor needs a mix of technical and interpersonal skills to serve clients effectively.
Also Read: What is Interpersonal Communication? Meaning, Skills, Types with Examples
Hands-on experience is crucial for understanding the intricacies of financial advising.
Certifications add credibility to your profile and demonstrate expertise in specific areas of financial advising.
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Let's now explore the potential financial advisor salary packages and career growth opportunities you can expect in this field.
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.
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.
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:
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.
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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
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