Who are the licensed investment advisory firms in Ghana as of 2021? What does an investment advisor do, and why would you hire one? These are the questions we will be answering in this post.
Why Would You hire an investment advisor?
According to Frank Ferri, on Forbes, the following are some reasons why you would want to hire an investment advisor:
- To put space between you and your investments so that you don’t make emotional decisions.
- To do detailed research on asset allocation or index funds because you would rather spend time doing more enjoyable things.
- To provide help to a spouse or family member who isn’t inclined to do it on their own.
- To provide help to a spouse or family member when you’re no longer able.
- For legal purposes to reduce your fiduciary responsibility such as a charitable trust account.
List of Investment Advisory Firms in Ghana – 2021
The following is a comprehensive list of all licenced investment advisory firms in Ghana by the Securities and Exchange Commission of Ghana, their contact phone numbers, and office location addresses.
|Investment Advisory Firm||Office Locations||Contact Address|
|deVere Ghana Limited||Stanbic Heights Building, 5th Floor, Liberation Road||(0302)-676463-4 / 664107|
|EGAS Capital Ltd||Nalag House, Legon, Tetteh Quarshie Roundabout||(0302)-500954 / (0302)-522708|
|Impact Capital Advisors||House No. P266, S.D.A Link Papao, North Legon||+233 245 070 3930|
|Injaro Investment Advisors Ltd.||#26, Premier Place II Apartment, 22 Senchi Street, Airport Residential Area, Accra||(0302)-950917|
|JCS Investment Limited||Plot No. 9 Martey Tsuru, Spintex Road, (Behind SMICE International)||(0302)-774567|
|Mustard Capital Partners Ltd. (Advisory Services Only)||18 Aviation Rd, Airport Residential Area||(0302)-782625|
|Oasis Capital Ghana Limited||No. 4A CharlottesVille, OIC Road Shiashe, East Legon||(0302)-522624 / (0544)-357020|
|Pan African Capital Limited||No. 8 Dzorwulu, Blohum Road, Accra||(0303)-963550|
|Renaissance Africa Group Limited||23 Volta Street, Airport Residential Area||(0302)-777165 / 765888|
|Sentinel Global Advisers||1 Alema Road, Airport||(0)557 534 976|
|T5 Ghana Advisers Limited||Regimanuel Gray Head Office, No. 2 La By-pass Rd, La||(0302)-770212-3 / 765118|
What does an investment advisor do?
Successful investment advisers are able to combine analytical ability, comprehensive fiscal knowledge and customer service skills to help their clients to define and reach their investment goals.
Employment as an investment adviser requires education in finance, business or economics. In Ghana, many employers would require a Chartered Accountant qualification. Because investment advisers hold an important part of a client’s life in their hands, they are held to strict standards when it comes to their duties and responsibilities.
1. Provide Investment Recommendations
After conducting the required research, investment advisers put forward an investment strategy that can best help the client meet their goals. This plan usually involves combining more than one type of investment, such as integrating stocks with IRAs and bonds to help diversify the portfolio and mitigate risk. When the client experiences a life change, such as marriage, the birth of a child, a new job or retirement, investment advisers reassess the investment approach and recommend changes as necessary. Outside of major events, advisers monitor client’s portfolios and propose required modifications.
2. Educate on investment options
One of the first duties an investment adviser performs is discussing clients’ financial goals and educating clients on various ways to accomplish them. This includes giving overviews of different investment types and explaining how each can benefit, or hinder, the client’s objectives.
2. Determine your risk tolerance
Investment advisers help clients assess how aggressive they can be with their investments and the amount of risk they can bear. The adviser must consider the client’s long- and short-term goals, family status, age, employment and expenses to give the most accurate advice.
3. Analyse your option
Once investment advisers establish the client’s goals and needs, they must research and analyze investments, strategies and market conditions to determine which option is most appropriate. Advisers must also keep up with market trends and financial news to ensure their guidance is accurate and relevant.
5. Records of your investment activities
Because investment advisers work with sensitive financial information, they have a responsibility to keep detailed records of the services they provide. These include signed contracts, disclosure statements, advisory reports and other client documents, as well as clear documentation of invoices, payments received and the exact services rendered. The need for rigorous record-keeping is magnified by the possibility of government agencies such as the Securities and Exchange Commission or the Ghana Revenue Authority requesting documentation or conducting an audit on the adviser or the client.
6. Knowledge of the required laws
Investment advisers are required to possess a thorough knowledge of federal and state laws regarding investments, financial advice and fees for financial services. They must also know and adhere to the regulations and requirements of the SEC, the Financial Industry Regulatory Authority and any certifying bodies, such as the Certified Financial Planner Board of Standards.
7. Guide on ethics compliance
Federal law requires that investment advisers abide by stringent ethics rules to ensure impartial, good-faith advice. This is sometimes referred to as “fiduciary duty,” and requires that investment advisers place the financial well-being of the client above their bottom line by disclosing all relevant information about an investment, avoiding conflicts of interest, and acknowledging any payment or other compensation they receive for recommending certain products or investments.