Investment Advice


DEFINITION of 'Investment Advice'

Any recommendation or guidance that attempts to educate, inform or guide an investor regarding a particular investment product or series of products. Investment advice can be professional; that is, the investor pays a fee in exchange for the qualified professional's guidance and expertise, as seen with financial planners; or, investment advice can be amateur in nature, as with certain internet blogs, chat rooms or even conversations.

BREAKING DOWN 'Investment Advice'

Investment advice refers to any recommendations regarding an investor's portfolio. Many professionals, including financial planners, bankers and brokers, can provide investors with investment advice that is specific to their financial situation and short- and long-term financial goals. Due to the vast amount of investment advice available, particularly online, an investor may wish to determine the qualifications of the person dispensing the advice prior to making any investments. Ultimately, it is up to the individual investor to decide which investments are most suitable.

  1. Investment Banker

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  2. Registered Investment Advisor - ...

    An advisor or firm engaged in the investment advisory business ...
  3. Investment

    An asset or item that is purchased with the hope that it will ...
  4. Financial Planner

    A qualified investment professional who helps individuals and ...
  5. Broker

    1. An individual or firm that charges a fee or commission for ...
  6. Equity Risk Premium

    The excess return that investing in the stock market provides ...
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  1. What licenses does a hedge fund manager need to have?

    A hedge fund manager does not necessarily need any specific license to operate a fund, but depending on the type of investments ... Read Full Answer >>
  2. Can mutual funds invest in hedge funds?

    Mutual funds are legally allowed to invest in hedge funds. However, hedge funds and mutual funds have striking differences ... Read Full Answer >>
  3. Do financial advisors get paid by mutual funds?

    Financial advisors are reimbursed by mutual funds in exchange for the investment and financial advice they provide. A financial ... Read Full Answer >>
  4. Do financial advisors prepare tax returns for clients?

    Financial advisors engage in a wide variety of financial areas, including tax return preparation and tax planning for their ... Read Full Answer >>
  5. When are mutual funds considered a bad investment?

    Mutual funds are considered a bad investment when investors consider certain negative factors to be important, such as high ... Read Full Answer >>
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