Bangalore: It’s all about trust when it comes to choosing a Financial Advisor. You trust them to always recommend decisions in your best interest because that is what they are being paid for. The unpredictability of the financial scene and people's inclination to make a quick buck regardless of ethics can make you wonder how trustworthy or even competent your advisor is. Morningstar.in reports on 6 red flags to watch out for while choosing a financial advisor.

1. Is not candid about fees

Trust requires transparency and open communication about the charges you will incur and indirect money the advisor will make off of your transactions. An advisor who has something to hide will skirt that topic to hook you in now and extort later. Like doctors prescribing branded medicines to the gullible instead of equally effective generics, investors may also receive commissions from companies trying to raise capital.

This can lead to him sidetracking your financial plan to suit his own goals. Ask him directly or take your business elsewhere. Besides, if he isn't honest about his own fees, what else could he be hiding about the purchases you make?

2. Pushes Particular Products or Strategies

Advisors asking you to buy into particular products or strategies without being able properly back their recommendations up with sound logic, facts or statistics have to be scrutinized. The reasons can either be because of incompetence, tips from others, shady deals or an unwillingness to have to explain his or her decisions to you. Whatever the reason may be, evaluating the advisor should be the next step.