People all over the world are not used to paying for financial advice. There are various reasons but 2 important reasons include:

  • It’s an intangible service so unlike a physical product the value is not seen upfront.
  • Trust Deficit – Will the advice be worth it or will I get my money’s worth

Think of how you have been sold financial products till now, especially Insurance products – The agent will come and suggest it to you, and if it makes sense, you end up buying it. It’s only later that ( some of us ) realise that the products may not be suitable for us.

Mutual Funds are a different story – Most people will hear about them on TV, or read in newspapers or magazines or talk to friends or family and invest based on their recommendations. It can work but it may also backfire.

Why Do We Charge For Advice ?

Before we answer that, you have to understand how we make money.

Let’s say you start a SIP of Rs 5000 per month in an Equity Mutual Fund. When you invest through us, we will receive a commission of around 0.5 to 1% of the invested amount. So in a year, for your annual investment of Rs 60,000 we will probably receive around Rs 500 – 600 gross commissions ( excluding all expenses like GST and business expenses )

Our Guided Service has 2 components:

1.) Phase 1

  • This is the time consuming phase where you as an investor will have a ton of questions about mutual funds and how they work. We will spend a lot of time educating you about Mutual Funds.
  • Then we will create a financial plan so that your money is invested to achieve specific goals
  • Recommend Top Performing Funds
  • Getting your KYC done and activating online account

The one time service fee partially covers the costs involved in providing this service to you.

2.) Phase 2

  • This is the ongoing phase where we help you monitor your portfolio on an ongoing basis
  • Conduct an annual review and rebalance your portfolio if required
  • Help you decided how to increase savings ( either from salary increase / Bonus etc )
  • Support for transaction reports, capital gains statements for tax filing, Redemption requests etc
  • Costs of maintaining the online platform / mobile app

The ongoing commissions cover the costs of providing this service.

Remember: There is no such thing as a free lunch – If someone is claiming to provide free advice, think and ask why.

Just as you would pay a doctor for medical advice or a lawyer for legal advice, or a dietician for a diet plan to lose weight, our service is similarly charged to help you grow your money better.

Also, Our interests are aligned with yours because we only make money over the years if you continue to remain our client – And you will only remain our client if our advice has helped you grow your money.

Talk to Us >>