How Much Do Financial Advisors Make? (With Skills and Duties)

Updated 11 March 2023

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A financial advisor provides financial advice and guidance to the customers based on their current financial situation. The financial services they provide include investment management, tax planning and estate planning. They can either work independently or join a financial consulting firm to guide and help their clients achieve their financial goals. In this article, we discuss how much do financial advisors make and the essential job skills and duties of a financial advisor in India.

Salary figures reflect data listed on Indeed Salaries at time of writing. Salaries may vary depending on the hiring organisation and a candidate's experience, academic background and location.

How Much Do Financial Advisors Make?

The average base salary of a financial advisor in India is ₹21,201 per month. The salary you earn as a financial advisor in India may vary depending on many factors, such as your education level, professional qualifications, location and skill set. Since the cost of living is higher in metro cities, you can earn a higher salary than the average base pay if you are a big city resident.

Here are some Indian cities where financial advisors earn more than the average base pay:

Pune, Maharashtra: ₹27,086 per month
Delhi, India: ₹25,513 per month
Chennai, Tamil Nadu: ₹27,950 per month
Bengaluru, Karnataka: ₹35,816 per month
Punjab: ₹39,578 per month

Skills Required To Become A Financial Advisor

Here is a list of essential skills required to become a financial advisor in India:

Interpersonal communication

Good interpersonal communication skills are a valuable tool for financial advisors as it allows them to communicate their ideas and suggestions to their clients effectively. Communicating with clarity and purpose ensures that you ask the right questions and offer meaningful answers to your clients who may need help to manage their financial distress. As a financial advisor, having good interpersonal skills can help you adapt your communication style according to the needs of your client and the communication setting, whether that is a one-on-one consultation or a remote or group financial guidance.

An efficient interpersonal communication involves the following components:

Verbal communication: A financial advisor explains their research findings to their clients and provides financial guidance to help them make informed business decisions. The advisor uses verbal communication to deliver their advice in a way that their client understands.
Nonverbal communication: A financial advisor engages in non-verbal communication displayed through their body language, gestures and facial expressions. Maintaining eye contact, nodding their head to agree or maintaining a neutral facial expression in serious conversations are all examples of nonverbal communication.
Active listening: Active listening by the advisor shows they are deeply interested in understanding and resolving the client's financial hardships by offering them valuable advice and listening to their grievances. It also ensures that the communication is mutual.

2. Detail orientation

Having close attention to detail can help financial advisors organise and accomplish their occupational duties on time. Good detail orientation skills enable the advisor to listen to their client's requests and determine the investments they would like to make. Detail orientation also helps you during the development of investment strategies. It allows you to share detailed explanations with your client on the actions you want them to take. Your job involves working with figures and statistics, so having expert attention to detail can help you with enhanced focus and decision-making abilities when recording financial statements.

3. Analytical thinking

Analytical thinking helps financial advisors employ solutions to problems that their clients face by analysing and breaking down the problem into simple components and adapting to changing circumstances. For example, an advisor suggests a real estate investment plan to their client, who is not ready to purchase. Here, analysing the client's reason for withdrawing from that property and then adapting to their mindset can help them maintain a healthy relationship. Using analytical thinking, the advisor may then suggest an investment option that meets their client's needs.

4. Wealth management

Financial advisors have a good understanding of wealth and asset management. Using this skill, financial advisors guide and advise their clients on earning and managing their income streams. Wealth management is a crucial aspect of industry knowledge and it refers to advisors knowing what investments can generate a higher income and their availability in the market. Wealth management abilities also allow a financial advisor to identify intelligent investment options based on their client's finances and business objectives.

5. Research

A financial advisor's job profile includes extensive hours of research devoted to understanding their client's economic history and transactions to guide them better. They take responsibility for examining how the client's previous wealth decisions, investments and transactions contributed to their current situation. The advisors also investigate ways to help clients achieve their financial goals, including making strategic investments in real estate, stocks or products, such as life insurance policies or retirement accounts. Doing market research can also help advisors on staying updated with the latest products and innovations.

6. Empathy

Empathy is an important life skill that can help financial advisors understand their client's economic hardships and uncertainty. Empathic advisors make for great communicators and active listeners to better guide their clients on investment risks or possible wealth management options that do not hamper their individual financial goals and motives. Empathy is also essential for an advisor since they have access to a lot of personal information, including their client's financial resources or family details, which can be sensitive. It can help advisors make their clients feel heard without the fear of judgment.

7. Risk assessment

Risk assessment is an essential skill for financial advisors as it allows them to assess and manage potential risks before offering any advice to their clients. Risk assessment is a crucial part of the research process where advisors predict potential risks and challenges that the client may face as they strive to generate more wealth. Some examples of risk can be the fluctuations in the market, which directly affect the success of your investments or a lack of jobs security, which can mean more financial stress and possible limited income for your clients.

Duties of a financial advisor

Here is a list of the principal duties of a financial advisor:

Contacting clients and set up meetings, either within an office environment or in the client's home or on business premises
Conducting in-depth reviews of their client's financial circumstances, current finances and future income goals
Analysing information and preparing plans to meet the clients' requirements
Performing risk assessment and analysis
conducting thorough research on the marketplace and informing the clients about newly launched products and services
Designing and implementing financial strategies for the client
Assisting clients throughout the financial advising process to help them make informed decisions
Researching information from various sources, including the providers of financial products, to maintain accuracy and transparency with the client
Adapting, reviewing and responding to the changing needs and requirements of the client and understand their financial position in case of resistance towards an investment plan or policy
Promoting and selling financial products to clients and other stakeholders to meet the given or negotiated sales target
Negotiating with product suppliers to get the best possible rates
Maintaining cooperation with the head office and financial services providers to ensure a smooth and consistent transaction process with the clients
Communicating with clients and other professionals, such as estate agents, solicitors, or valuers
Staying up-to-date on the latest advancements in financial products, services and legislations
Producing financial reports
Contacting and informing the clients about the changes in legislation or a financial product and how it may affect their investment plan or savings plan

Financial Advisor FAQs

Here are some frequently asked questions (FAQs) and their answers on how to become a financial advisor:

What are the working hours of a financial advisor?

Most financial advisors work for about 40 hours per week during standard business hours, often from 9 a.m. to 5 p.m. Some financial advisors may also work extra hours during evenings, weekends or holidays. It is common for advisors to adapt to their client's schedules to meet their needs, which may sometimes mean working outside of office hours.

How is the work environment of a financial advisor?

Financial advisors typically work from an office space. They use computers or laptops to research investment options and to sell and buy stocks or bonds. Financial advisors may also meet with their clients outside of the office and attend networking events to attract new clients.

Do financial advisors require a master's degree?

Financial advisors do not require a master's degree to practise as an advisor. The minimum educational requirement to become a financial advisor is a bachelor's degree. However, if you get a master's degree, you might better position yourself in the financial market and refine your skills and expertise.