How Do I Become an Index Fund Advisor?

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  • Written By: Helen Akers
  • Edited By: Jessica Seminara
  • Last Modified Date: 19 November 2019
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Index fund advisors provide investment advice on index funds, which are a type of mutual fund. To become an index fund advisor, candidates will usually follow the same path as most financial advisors. Some obtain a college degree in business, accounting or finance prior to obtaining professional certification. Gaining experience in financial planning may be required prior to pursuing certification.

A distinguishing factor between index funds and other investments is that they tend to present lower risk, be less expensive, and model their fund assortment after certain exchange indexes, such as the U.S. NASDAQ exchange. The returns achieved on an index fund will typically be close or equal to the average return of the modeled exchange. For instance, if the value of the NASDAQ gains 12 percent over 30 years, the index fund that bases its portfolio on that exchange will tend to grow 12 percent in the same time frame.

One of the requirements to become an index fund advisor is professional training. Financial advisors are typically responsible for building their own client bases after an introductory period. Some individuals choose to work for banks or brokerage firms that provide training and sponsorship for professional licensure. Others decide to work for insurance companies or launch their own business.


The educational requirements to become an index fund advisor may vary depending upon the type of employer. Some larger investment firms may not require certification prior to training, but might prefer candidates to have a college degree in a related subject matter. Others may seek out candidates with some type of financial experience, such as a bank teller, personal banker or accounting clerk.

A good way to become an index fund advisor is to obtain experience through a larger banking institution or investment firm. Countries where major world market exchanges exist will typically feature two or more major firms. Some of them take on new college graduates or those with practical experience seeking a career change. New financial advisors are usually paired with seasoned personnel while they take courses and earn trading licenses.

Not every individual who wishes to become an index fund advisor starts out in index funds. He may branch out after specializing in other types of mutual funds or securities. Advisors who start their own companies may sell index funds among other types of investments. Insurance agents might also offer them through the company they represent, but not deal exclusively with the investment product.


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