finvestor.in helps you get the initial free advice on your financial concerns from RIAs. You may wish to later opt for any paid or free service from the RIA.
finvestor.in also has free tools that give instant suggestions on insurance & investment to customers.
Why do I need to seek the advice of an RIA? My friend and my uncle’s neighbor can do the same thing for free.
As per SEBI, ( The SEBI (Investment Advisers) Regulations, 2013 (“IA Regulations”)) only an RIA can provide financial advice on investment. This was done to curb malpractices of so called experts in the financial world. SEBI has stringent validation and screening process that ensures that the RIA is knowledgeable and understands the financial world before providing any advice.
Seeking advice from an RIA is akin to seeking medical advice from a qualified doctor.
Why do RIAs charge a fee for comprehensive financial advice? My friendly Bank representative is so nice that he keeps selling financial products for me and that too free.
A representative from bank is a sales agent. Hence, his/her compensation depends on sales volume. That person will not be interested in your financial growth, but would be catering to the growth targets of his/her own.
There is nothing free in the world, the sales rep who sells financial products to you gets a commission from the product owner or fund house.
You should understand that financial products are not meant to make a millionaire overnight. These are products to be bought and kept as per an individual’s financial goal and plans.
Ideally, a sales rep is not authorized to suggest any financial product without a prior risk profile and interview. Hence, before they sell products useless to you, they would ask random questions about your financial health. And since they are in sales, they will pitch in some points to make you believe that they are selling the right product. Since you agree, the onus of buying the product is yours and not the sales rep!
Once a sales rep has sold, his/her work is over. You never get to see that person again. You are held with products that offer no value to you. Remember the ULIP ‘misselling’ case of 2000s? Thousands of investor lost their wealth however, the hundreds of agents who sold the products earned money.
So how are advices from RIA different?
RIA’s don’t sell financial products.
RIA will assess your financial health, based on several industry standard practices, and let you know the right products for you.
RIA will suggest a few products not as in “Buy XYZ mutual fund”, but will suggest say “Buy diversified mutual fund” and then give suggestions of top 2 -3 mutual funds which you may buy either one or all. There is no commission based transaction.
Since RIA does not benefit from the sale of the financial product, the RIA’s focus will be on the customer and the customer’s financial health.
Is financial planning for the ultra rich, so that they can enjoy life and have financial planners grow their money?
SEBI RIAs are all everyone, anyone who is earning needs to have financial planning.
SEBI RIAs do not hold any positions in your investment, ie Portfolio Management Services is not done by most SEBI RIAs. RIA will check your financial health and then provide advice based on your financial risk profile and future goals and needs.
Financial planning needs a lot of experience about financial industry. You interact with RIAs who have years of experience in the field and hence can provide the best advice.
Your annual salary could be anything between 1L to 100 Crore, everyone needs financial planning because the one thing the rich, the middle class and the poor can't control is time. The right plan at the right time makes a lot of difference. It can change your future.
Is there a money back?
At finvestor.in, we help you post your financial concerns and let RIAs answer for free. There is no money you pay using a service from finvestor.in.