When clients think of their investments, they have only one belief i.e. they should move in the upward direction. In case, their investments are not performing well or drop, clients feel they have suffered losses.


As a financial advisor, one of your prime responsibilities is to make clients familiar with the nature of investing. Explain to them that markets will go through ups and down and such volatility will not affect their current investments. When clients are aware of this, they are more likely to stick to the financial plan in the long term.


Being an expert, you would certainly know the different aspects of investing but keep in mind that your clients may not. Hence, use simple language to describe terms associated with investing. For example, advisors can do some simple math to make clients understand how much money they would need at the end of 10 years for their child’s marriage and how investing at regular intervals will help them achieve this goal.


If a client calls up and tells you they have just received a tip off and are keen to move their assets, you must stop them from committing such mistakes. Financial advisors are not just accountable to produce returns. They also play a vital role in managing client behaviour. Don’t let your clients take hasty, illogical decisions on emotional grounds. Again, explain in a simple manner that things might take a wrong turn and have a negative impact on their present investments.


When you speak to clients about investing, it is possible that you would be acquainting them with new ideas that they might not have heard of earlier. Changing their perception is slightly difficult. However, if advisors master the soft skill of presenting things in an uncomplicated manner and stay patient, they will be able to communicate the importance of investing effortlessly.