Handling money and accounts is an art people have been mastering since ages. As independent women, we all need to learn how to manage our own money and more importantly go to the correct person to help us handle it.
There are different people in the finance world that will help you multiply, save, invest, check, audit and secure your finances and account. Here is a list of these people and how they can help you deal with your finances.
STOCKBROKER: Middleman between you and the stock market
When you want to start investing/trading in the stock markets, who do you go to? A stockbroker. Stockbrokers are the correct people to deal with when it comes to stock markets.
Investopedia describes brokers as people who handle customer orders to buy and sell securities. In the same way that a grocery store acts as a middleman between shoppers and the companies that produce food, a broker acts as a middleman between the securities that trade on the market and the investors who buy them.
Just like stockbrokers there are real estate brokers and insurance brokers too:
ACCOUNTANT: The one who prepares and checks your finances/accounts
If you run your own business you know how crucial it is to maintain financial statements and accounts. Most of us aren’t financial experts, and we handover are finances & accounts to a professional, to help us manage them. These professionals are the accountants. Accountants help us file our taxes, give us sound financial advice, recommend economical solutions to solve business problems, check our accounts etc. Basically, they are our financial doctors.
PORTFOLIO MANAGER: Takes investment decisions on your behalf
For some of us, investing is just not our thing, for some financial jargon is like sitting on a roller coaster and for some, they just don’t have time to take investment decisions. For all these people there are portfolio managers. They take investment decisions on our behalf depending on our risk-taking ability, amount of investment and urgency of income we need from these investments. Portfolio Managers are like personal shoppers, they will create an investment portfolio that is suitable for you and customize it to cater to your needs and wants.
If you want to know more about portfolio management read these important concepts & meanings on portfolio management.
BANK TELLER: Bank representative dealing directly with customers
Not many people know this but the person who provides account services to customers by receiving deposits and loan payments; cashing checks; issuing savings withdrawals; selling of cashier’s checks, traveller’s checks, and answering questions in person or on the telephone; referring to other bank services is a bank teller.
However opening a bank account is not as easy as approaching a bank teller, there are steps involved. These steps in brief are:
Step 1: Make sure you’re eligible to open an account.
Step 2: Choose the bank that’s best for you.
Step 3: Pick the type of account you want.
Step 4: Visit your bank and ask to open an account.
Step 5: Ask important questions before you finalize your account.
Step 6: Supply the necessary information to create your account.
FUND MANAGER: Manages funds in institutions
Fund managers are employees of a large institution (such as a mutual fund, pension fund or an insurance company) who manages the investment of money on behalf of the institutions.
Mutual fund managers are similar to portfolio managers but the only difference is that mutual fund managers manage the funds of a group of investors collectively and a portfolio manager manages the funds of an individual investor according to his personal needs and preferences.
Still confused? Compare them to types of travellers. Investing in mutual funds is like travelling with a tour group. You have a standardized, common itinerary with the rest of the tour and all investors invest in a common scheme. But going to a portfolio manager is like being a solo traveller. Your itinerary (financial portfolio in this case) will be customized according to your personal needs and preferences. The fees to invest in mutual funds is less compared to hiring a portfolio manager where you have to pay a higher fee. Also to invest with portfolio managers minimum fund required is Rs. 25 lac and in mutual funds, you can invest with as little as Rs. 500.
So now you know who to go to if you want to open an account, invest your money, check your finances and ensure you have cash in your old age. If there are other professionals in finance that have made your life easier, let us know in the comments section below.