In this post, I am going to share with you the list of Fee-only Financial Planners in India and their Fee structure to understand and help you in choosing the one as per your comfort.
When we say Fee-Only Financial Planners, then obviously they are SEBI Registered Investment Advisers. He or she is the one who charges you the fee for financial plan creation and will not receive any form of commission or incentives from mutual fund companies, insurance companies or from any other financial products sellers DIRECTLY or INDIRECTLY. Hence, it is one of the best conflicts frees advice which you can get it.
However, there is one more form of financial planners who are also called Fee-Based Financial Planners. They also design you the plan but whenever you invest or buy certain financial products, these fee-based planners will receive certain commission or incentives. Hence, you may not expect complete conflict-free advice.
As per SEBI RIA Regulations “An investment adviser shall not receive any consideration by way of remuneration or compensation or in any other form from any person other than the client being advised, in respect of the underlying products or securities for which advice is provided.”
However, there are many planners who ignore this regulation and still practice the fee-based financial planning service. Hence, you have to be cautious while hiring a planner.
Five reasons to hire Fee-Only Financial Planners in India
Let us now discuss the valid reasons why you have to go with fee-only financial planners than going with a middleman who may advise you but also may sell the products.
# Zero Commission or Incentives
When the Fee-Only Financial Planners recommend some products to invest or buy, they not receive any commission or incentives from your investment or buying. Hence, it does not matter to the fee-only planners whether you invest in A product or B product. Hence, the planner will look into your requirement and the recommendations always are client-centric.
As the charges are disclosed up front and the planner is not receiving any commission or incentive, obviously, the engagement will be more transparent than the other form of engagement.
# Flat Fee
There are many fee-only planners who are practicing the % based fee structure (even among the SEBI RIAs). Better you avoid such % of AUM based charging module and go with a planner who is charging you the flat fee. Fees as a percentage of your assets are nothing but a replacement for commissions and will result in a conflict of interest. Hence, by working with flat-fee charging planners, you are completely aware of conflict-free advice.
# Distance is not a barrier
With so many online options available currently to arrange the online meeting, you can hire a planner who may belong to a different city. Hence, distance is not a barrier and you can engage with the planner as per your comfortable rather than restricting your choice to your city. All the below-listed planners work on this online module. Hence, don’t look into to which place they belong to.
# Strict SEBI Regulations
As all these below-listed fee-only planners are registered with SEBI as RIA, you may expect the highest degree of compliance and fiduciary standards. This itself will create trust with your planner. Hence, no question of doubting their intention.
List of Fee-only Financial Planners in India and Fee Structure
Now let us look into the list of Fee-Only Financial Planners in India and their fee structure. As I told above, there are many SEBI RIAs who are practicing the Fee-Only Financial Planning service. However, their fee structure is not flat. Instead, it is % based on your AUM. I am not considering those planners in my list. I have given the reasons also why I am against the % based fee-charging.
The below list is based on the alphabetical order. Hence, don’t think that the one who is on top is the best.
Note that the fee ranges from Rs.10,000 to Rs.75,000. I don’t want to discuss on why such a huge difference is the competency is the same among all. It is purely the individual planners call to charge and run their business module.
Conclusion:-If you are really willing to take financial planning service, then better you hire the flat fee charging above listed fee-only planners. I am also one of them. If you are looking to hire me, then visit the page “Fee-Only Financial Planning Service” to know more and be in touch with me.