Investment Advice
While looking at the Mutual Funds investment advice and distribution space in India, our first observation was that this space is extremely crowded, with Banks, Brokerage Houses, Fund Advisors and small distributors – all vying for a piece of the action.
With our vast experience in research and analysis of financial data, built over the last twenty years, we concluded that there is definitely a niche in this huge market for a player such as us, who would add value to the end-user of MFs – the investor.
In the race to earn more commissions, we found that the investor’s interest was more often than not compromised. We therefore decided to enter this business, with an
objective to provide conflict free, high quality, low cost financial advice to investors in India.
To begin with, while we are gathering data, we have decided to provide financial advice to the first hundred clients, absolutely free. After studying their portfolios, we are reasonably certain that we will be able to suggest modifications – in tune with their financial capabilities, age and risk appetite – that would yield them better returns in the future. We would also advise our clients on the various tax saving options that are available to them. Too often, this important function is missed out by advisers.
Low Cost
There should be a high probability that the value added by virtue of the financial advice, in excess of fees, is positive. It should be a competitive value-added service.
Conflict Free
The compensation for financial advice is often based on commissions. The advice is colored by the amount of commission received by the provider rather than what is best for the client. Trust is the single most important component of good financial advice. Commission based advice, particularly without transparency of commissions, makes for conflicted advice that erodes trust and makes high quality advice difficult.
We intend to squarely address this problem by being completely transparent from day one about the cost that the receiver of our advice will bear.
High Quality
Advice should be as good as possible and as simple as possible.
Too many times, complex products are recommended to clients, which may not be in their best interest. Ultimately, it is the Adviser who profits from such recommendations by way of fees.
