Frequently Asked Questions

1. Who is a Fee-only financial planner/adviser?

Ans : A fee only financial planner/adviser receives only a fixed fee for the service provided. The planner does not receive commission or other benefits for the financial products recommended. This is in line with SEBI guidelines for SEBI registered investment advisers.

2. What are the advantages of engaging a SEBI registered fee-only planner/adviser?

Ans : A fee-only planner provides his services only for the fee received from his client and does not receive any commission. No commission means no conflict of interest. SEBI registered investment advisers have a fiduciary role meaning that they have to put their client’s interests ahead of everything, including their own. SEBI registered advisers have the required certification and they comply with SEBI regulations by following the due process.

3. Who can take the financial planning service?

Ans : Any individual (resident Indian) or NRI (returning to India) who wishes to manage their finance in a systematic manner to achieve their life goals can take this service. There is no specific age to start planning.

4. Can I engage a financial adviser who is not based in my city?

Ans : Yes, with the advancement in technology, it is easy to have audio/video conversation with an adviser in any location. The criteria for engaging an adviser should be the quality and trustworthiness rather than the location.

5. What is the difference between direct and regular mutual fund?

Ans : A direct plan is purchased directly from the mutual fund house. A regular plan is purchased through a broker/distributor. In a regular plan, the mutual fund company pays commission to the broker/distributor.
Direct plan is recommend as the returns in the long term is much higher than the regular plan as there is no commission involved.