Benefits of seeking professional financial guidance

16 Jun 2022

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The Need of seeking professional financial guidance arises due to 2 key reasons:


Usually, people are occupied in their work or personal life, they do not get adequate time to plan their finances or create strategy to meet their diverse financial goal


Skill and proficiency in an investment sense means comprehensive understanding of capital markets, varied investments avenues, asset allocation, economic trends etc. While many investors despite being successful in their respective field may not have the required set of skills.

Seeking professional financial guidance can help you in:

  • Identifying various financial goals
  • Chalking out detailed financial Plan
  • Creating optimum asset allocation basis risk profile
  • Choosing the right investment avenue/product
  • Constant Portfolio review & rebalancing if required

Long term benefits of professional financial guidance:

Even if it is assumed* that with professional guidance an investor is able to generate an alpha of only 2% after paying all expenses, the incremental value created due to seeking professional guidance is significant which is shown in the below table:

Lump sum Investment Rate of return 10 years 20 years 30 years
₹10,00,000 10% ₹25,93,742 ₹67,27,500 ₹1,74,49,402
₹10,00,000 12% ₹31,05,848 ₹96,46,293 ₹2,99,59,922
Incremental Value created +2% ₹5,12,106 ₹29,18,793 ₹1,25,10,520

*The rate of return is based on assumption; actual returns may differ.

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    The contents of this article/infographic/picture/video are meant solely for information purposes and do not necessarily reflect the views of Bank of Baroda. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Bank of Baroda and/ or its Affiliates and its subsidiaries make no representation as to the accuracy; completeness or reliability of any information contained herein or otherwise provided and hereby disclaim any liability with regard to the same. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject Bank of Baroda or its affiliates to any licensing or registration requirements. Bank of Baroda shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.

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