What is an IFA?

In Back to School Week, we're explaining some of the most common investment acronyms

Holly Black 24 August, 2021 | 11:29AM
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Holly Black: Welcome to the Morningstar, Investment ABC. We're going to go through some of the most common acronyms in the investment world, which sound really confusing and off-putting, but aren't as bad as you think. And the aim is to prove that investing is as easy as ABC.

Alex Gard: Hello, my name is Alex Gard and today's word is IFA. I is for Independent; F is for Financial; A is for Adviser. 

Black: Thanks very much, Alex. So, yes, today's word is IFA, so why might you see an independent financial adviser? Well, quite often if you come into some money, perhaps some inheritance. Or if you're in different life stage, perhaps approaching retirement or starting a family, then you might want some guidance on what exactly to do with your finances. 

So why IFA? I for independent because some financial advisers are tide to certain fund houses or can only advise on certain products. If you see an independent adviser, they should be able to advise you on the whole of the market, so you know that you're getting the best things recommended to you. F for financial, that's quite an obvious one. This is all to do with your finances. And A for adviser, because crucially this is only advise, a financial adviser should not be pressuring you or telling you what to do. This should be a collaborative relationship where they help explain things to you in simple terms so you understand and are comfortable with the decisions and you get the better outcomes. 

IFA, yay.

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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About Author

Holly Black  is Senior Editor, Morningstar.co.uk