There comes a time when we decide to grow our money or plan for a secure future. And one of the first thoughts that comes to mind is investments. Making investments in the right way can help you beat inflation, earn periodic payouts, and grow your wealth over time. It helps you reach your goals faster.
But making investment decisions is tough. It demands strategic timing. You have to choose from an ocean of options available. Most importantly, you have to pick what suits you best. Let’s not forget about fighting our emotional biases.
And here’s where an Investment planner comes in. You see, the internet is flooded with advice, AI tools, and self-proclaimed experts, but not all qualify as investment planners.
In this article we will talk about who an investment planner actually is, how you can find the right investment planner and how the right one can help you make better decisions.
Who is an Investment planner?
An investment planner is someone who can help you decide how to invest your money to meet your short-term and long-term financial milestones. These milestones could include buying a house, funding a child’s education, retiring comfortably, or achieving financial freedom earlier in life.
They guide you through the complex world of investments like mutual funds, stocks, bonds, and gold, depending on your risk appetite and time horizon.
An investment planner studies your income, savings, loans, and spending habits, then builds a clear action plan to balance your investments with your lifestyle. Their job is not to sell a product, but to design a strategy that fits your situation.
Example:
If you’re 30 years old and wish to retire at 60, an investment planner might calculate how much you need to invest monthly in equity mutual funds to reach your goal, while also recommending a balanced approach for emergencies or medium-term needs.
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How can an investment planner help you?
Many people try DIY investing, but without proper analysis, they often end up chasing trends or overlooking risks. Hiring a qualified investment planner can simplify your journey to financial well-being. Here are the main ways an investment planner helps you:
Assessing your current financial situation
To understand what kind of investments you should choose, an investment planner first helps you assess where you stand today. Using mathematical ratios like debt-to-income, liquidity ratio, and net worth, they identify what needs correction in your financial life.
Risk profiling
Everyone sees risks in different ways. This is the way an investment planner does your risk profiling, in other words checks how much risk you are comfortable with before offering you advice.
For instance, 1 Finance uses MoneySign®, a psychological patented assessment that reveals your financial personality.
Milestone planning
Instead of random investing, the planner ties every investment to a specific goal and its timeline, and importance.
Take for example, if you have a short-term goal like a car purchase, the planner might recommend low-risk options. If your retirement is years away, they may guide you toward an aggressive investment strategy which will help you have enough savings for retirement.
Asset allocation and diversification
An investment planner assesses your risk appetite and life goals to create an asset allocation plan. They may use frameworks to classify you—for example, if you are seeking high returns for higher-risk products you may be classified as an aggressive investor.
For this kind of investor, planners suggest high growth financial products like equities.
Life stage also matters here. If you are someone close to retirement, the planner will recommend you to shift your portfolio more towards safer options like debt funds.
Similarly, if you are a risk averse planner may suggest safer options like bonds or government securities for those uncomfortable with risk (i.e., risk-averse individuals).
Macroeconomic awareness
A good investment planner helps you invest based on current market scenarios. For instance, during a recession, they may suggest gold or commodities as inflation hedges. If the economy is in strong recovery, they might recommend equities as equities are seen to rise when the economy is recovering.
Psychological coaching
Many bad decisions stem from emotions—like the herd mentality. Take for example, many people were seen buying silver just because everyone else was buying.
An investment planner counters such biases, providing clarity. They act as a psychological coach, offering support with periodic reviews and rebalancing to keep you aligned, even during market ups and downs.
Tax efficiency
Investment planners design tax-smart portfolios by selecting products eligible for deductions or lower tax rates on gains.
Clarity and education
A good planner explains the “why” behind every recommendation, empowering informed choices. Essentially, they become your thinking partner for all money decisions, ensuring your money works wisely.
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Only SEBI RIA can be an investment planner
This is one of the most important truths many investors might not know: under Indian regulations, only a SEBI Registered Investment Adviser (RIA) is legally allowed to offer personalised investment advice for a fee.
SEBI (Securities and Exchange Board of India) introduced the RIA regulation to protect investors from mis-selling and conflicts of interest.
Before this, many “financial planners” or “consultants” earned commissions by selling specific products — meaning their advice was not always unbiased.
A SEBI RIA must meet strict rules, such as:
- Qualification in finance
- Acting in a fiduciary capacity — meaning their legal duty is to act in your best financial interest, not their own.
- Maintaining transparency in fees and written documentation of advice.
- Keeping records and disclosures open for SEBI audit.
When you hire a SEBI RIA, you hire a regulated, qualified, and responsible investment professional who is accountable for their recommendations.
This is why you should only work with SEBI RIA.
How does an investment planner charge you?
Unlike traditional agents or brokers who earn commissions from selling mutual funds or insurance, SEBI RIAs follow a fee-only structure. This means you pay them directly for their advice, just like you pay a doctor or lawyer for professional consultation.
Common fee models include:
- Fixed fee model:
In the fixed fee model, you pay a set amount every month, quarter, or year. No matter how much your money grows or falls, the fee stays the same. SEBI allows RIAs to charge up to ₹1.51 lakh per year per family. This fee does not change based on how much money you have invested.
- AUA (percentage) model:
The RIA charges a small percentage of your total investments. The fee can be typically between 0.5% to 1.5% per year. SEBI allows RIA to charge maximum up to 2.5% per year per family. For example, if you have ₹50 lakh invested, the RIA can charge up to ₹1.25 lakh per year (2.5% of ₹50 lakh).
The good thing about this model is transparency. You know exactly what you’re paying for, and since your advisor doesn’t earn from commissions, there’s no pressure to buy unnecessary products. It also helps build trust — your success becomes their success.
How to find an investment planner
The goal is to find someone who is qualified, unbiased, and genuinely interested in understanding your life goals.
Here’s how to do it:
- Check SEBI RIA registration:
Visit the SEBI website and look for the registered investment advisor list. Each RIA will have a registration number, office address, and contact details. - Read reviews and credentials:
Look at their background — education, years of experience, and any professional certifications. - Schedule an introductory call:
Most RIAs offer a short consultation to understand your needs. Use this time to gauge how well they explain financial concepts. - Ask how they are compensated:
Be clear about all fees before signing any agreement. Avoid anyone who earns hidden commissions. - Discuss their process:
Ask how they track progress, how often they update your plan, and what tools or reports they provide. - Choose based on comfort and trust:
Financial planning is deeply personal. Pick someone you feel comfortable discussing your goals, fears, and mistakes with.
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You need holistic financial planning, not just investment planning
Investment planning is only one part of your overall financial picture. A holistic financial plan goes beyond where you invest; it brings together income and expense planning, insurance planning, tax planning, estate planning, and retirement strategy into a one personalised financial plan.
You might have heard of the butterfly effect—the idea that small actions can lead to big outcomes, both positive and negative. The same holds true in your financial life. A small decision today, like taking a loan, skipping insurance, or chasing a hot stock tip, can shape your long-term security. To ensure these “small” actions work in your favour, you need an advisor who understands these ripple effects and can guide you accordingly.
How 1 Finance helps you
Choosing the right holistic financial planner is among the smartest financial moves you’ll make. In a world overflowing with information but starved for true guidance, 1 Finance with its team of SEBI-registered, Qualified Financial Advisor, offers unbiased and personalised advice that aligns with your finances.
It offers comprehensive services—from investment and retirement planning to creating a will. Using patented assessment MoneySign® to understand your unique financial personality, 1 Finance also serves as your behavioral coach, helping you navigate emotions for smarter decisions.
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