Investment Consultants (ICs) is professional financial planners who provide investment management advice to clients on a variety of financial issues. An independent investment advisor can also be called an investment consultant. An independent consultant works for their own account and does not work for a company, partnership or brokerage. An independent investment consultant plays an important role in the management of your assets and funds. They are not licensed brokers and cannot give you legal advice.
There are two types of investment consultants; the ones that specialize in one area of investing, such as managed funds, or individual investors, or the ones that manage several areas of expertise, such as pension and insurance portfolios, real estate portfolios, or stock and bond portfolios. An independent portfolio manager tracks your stocks, bonds, and money market accounts day by day and keeps a detailed record of your performance. The records show what investments have performed well, and what investments need improvement in order to return higher profits. If an investment consultant changes his stock picks, the manager must immediately update the portfolio manager about the same.
Many money managers work for asset management firms. These firms hire investment consultants to help their clients manage their assets and advise them on investment decisions. In order to qualify as an investment consultant, the individual must be registered with the Securities and Exchange Commission. Registered investment consultants must complete a three-year course that teaches them how to make informed investment decisions, how to access investment data, and how to analyze it. Brokerage firms hire these brokers to oversee the investment consultants that they employ.
Hedge fund managers work for hedge fund firms or other investment consultants. Hedge fund managers to provide investment advice to institutional clients. They make investment decisions for the institutional investor on behalf of the institutional client. They are paid based on the return of the institutional investments that they manage. Hedge fund consultants can also work as general consultants to hedge fund firms and investment consultants that are registered with the SEC.
College degree holders can work as investment consultants. A college degree allows these professionals to take on more client work and gain more expertise. Most college degree holders who want to enter financial advisor positions have to complete either an associate’s degree or a bachelor’s degree. These financial advisors must also pass the certification exam from the American College of Financial Advisors (ACAF).
The jobs of investment consultants can vary according to location. For example, some consultants may find work in private equity firms, hedge funds, and asset management firms. While others may find positions in government financial agencies or banking institutions.