What questions should I ask a wealth advisor before hiring them?

Ask for their ARN or RIA registration number, how they are compensated (commission, fee, or both), whether they recommend direct or regular plans and why, how often they will review your portfolio, and whether they will put recommendations in writing. Their answers reveal more than their pitch does.

Is it bad if my advisor earns commission from mutual funds?

Not inherently. Commission-based distribution is a legal, regulated model (regular plans) and many investors value the ongoing service it funds. The issue is only when commission isn't disclosed, or when it visibly drives fund selection toward high-commission products regardless of suitability.

How do I check if an advisor is actually AMFI registered?

Every genuine mutual fund distributor has an ARN (AMFI Registration Number) issued by CAMS on behalf of AMFI. You can ask for it directly and verify active distributors through AMFI's official channels. A real advisor will share this without hesitation.

How to Vet a Wealth Advisor: Questions to Ask (2026)

By Bhrugu Thakkar · Real Value (ARN 24454) · October 2026 · 7 min read

Short answer: Ask for their registration number, how they get paid, whether they'll explain the "why" behind every recommendation in writing, and how often they'll actually review your portfolio. A real advisor answers all four without flinching. A salesperson dodges at least one.

Anyone can call themselves a "wealth advisor" in a WhatsApp forward or a LinkedIn bio. The title is unregulated — what's regulated is the registration behind it. Before you hand anyone your bank details, SIP mandate, or trust, run them through these questions. The answers (or the discomfort around them) tell you everything.

1. "What's your ARN or RIA number?"

A mutual fund distributor must have an AMFI Registration Number (ARN). A fee-only advisor should be a SEBI-Registered Investment Adviser (RIA). If someone is selling mutual funds, PMS, or insurance without a visible registration, that's not a minor paperwork gap — it's a red flag you should not ignore. Ask for the number, and don't be shy about it. A legitimate advisor shares it as readily as a shopkeeper shares a GST number.

2. "How exactly do you get paid?"

There are broadly two models in India, and both are legal:

Model	How they earn	What to watch for
Distributor (ARN holder)	Trail commission from AMCs, built into regular plan expense ratio	Ask if recommendations lean toward higher-commission products
Fee-only RIA	Flat fee or percentage of assets, paid by you directly	Ask exactly what the fee covers and how often it's charged

Neither model is automatically better — a good distributor with transparent intent can serve you as well as a good RIA. What matters is that they tell you plainly which model they use, without you having to dig.

3. "Why this fund, and not a simpler alternative?"

This is the single best question you can ask, because it forces a real explanation instead of a pitch. A genuine advisor will talk about your goal, time horizon, risk capacity, and how the recommendation fits — not just the fund's recent returns. If the only answer is "it's been giving great returns," that's not advice, that's a rear-view mirror.

4. "Can you put this recommendation in writing?"

A written record — even a simple email summarising the plan, the goal it serves, and the reasoning — protects both of you. It also filters out anyone operating purely on verbal promises and WhatsApp screenshots of NAV charts. If an advisor resists documentation, ask yourself why.

5. "How often will we review this, and what changes it?"

Investing isn't a one-time event. Ask what triggers a review — a year passing, a life event, a fund consistently underperforming its category, or a change in your goals. An advisor who disappears after the first SIP is set up isn't managing a relationship, they closed a sale.

6. "What happens if I want to exit or switch?"

Watch the reaction here more than the words. Discomfort, guilt-tripping, or pressure to "wait it out" when you simply want clarity on exit loads and tax implications is a sign of a relationship built on lock-in, not trust.

Green flags vs red flags

Green: Shares ARN/RIA number unprompted, explains direct vs regular plan honestly, asks about your goals before suggesting products, documents advice.
Red: Promises guaranteed or fixed high returns, pushes one product aggressively, avoids written confirmation, gets defensive about fees.

For a deeper look at how the fee conversation itself should go, see our piece on direct vs regular mutual fund plans, and if you're assessing an existing relationship, our guide on signs it's time to review your portfolio is a useful companion check.

The honest verdict

Vetting an advisor isn't about finding someone with a perfect track record of market calls — nobody has that. It's about finding someone whose incentives, process, and communication you can verify and trust over years, not just one good conversation. Ask the questions above before you invest a rupee. The right advisor won't just tolerate the scrutiny — they'll welcome it.

Want an advisor who answers every one of these upfront?

Get a free, no-obligation portfolio review — ARN, fees, and reasoning disclosed from the first conversation.

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Mutual fund investments are subject to market risks. Read all scheme related documents carefully. Educational content, not personalised advice. Real Value — AMFI Registered Mutual Fund Distributor, ARN 24454.