Definition of 'Advisor'
1. The person or company responsible for making investments on behalf of, and/or providing advice to, investors.
2. In the context of the mutual fund business, an advisor, also known as an investment advisor, is an organization employed by an investment company to manage a particular fund's portfolio. A fund's advisor assigns a manager(s) to make the day-to-day decisions involved in the purchase and sale of a fund's securities according to stated strategies and investment objectives.
Investopedia explains 'Advisor'
1. It's a good idea to choose an advisor carefully according to his or her professional credentials, experience and expertise. Fees and services provided are also important considerations.
2. A fund's advisor has the primary responsibility for the investment performance of the fund. This responsibility may be shared with another investment advisory firm, with each advisor focusing on different asset types in a portfolio. Advisors receive an annual management fee, which is computed as a percentage of a fund's assets under management. The fee makes up a large portion of a fund's operating expenses. For fund investors, judging the quality of a mutual fund's portfolio management is one of the most important considerations for investing in a fund.