Quora Answer: Would It be Wise for a New Investor to Invest in Index Funds or Build a Diversified Portfolio Based on a Consultant?

The following is my answer to a Quora question: “As a new investor, would it be wise to invest in index funds, or build my own diversified portfolio with the help of on a trusted share consultant?” 

These options are not mutually exclusive.  If you are a new investor, this normally means a lower risk tolerance.  In such a case, it would make perfect sense to invest in index funds, because it spreads your risk by diversifying your portfolio and an affordable cost.  Any share consultant would likely recommend this.  Financial consultants of this sort recommend index funds, specific counters and exposure, and the weightage.  These are things that a new investor is not likely to know.  There is political risk, currency risk, and taxation considerations as well.