Q. Are you a SEBI Registered Investment Adviser?
Yes, Rohit Shah is registered with SEBI as an Investment Adviser in his individual capacity.
Q. What do you mean by fee only engagement?
A. We will be recommending and dealing with only zero commission products. As an example, we will recommend you Direct Plans of Mutual Funds. As appropriate, we would also be recommending index funds.
Q. What is included in planning?
A. In financial planning, we have included efforts to understand your current financial environment and give you a customized plan using our time tested methodology. The plan includes metrics, assessment of retirement financials, cashflow forecast, balance sheet analysis, asset allocation review, insurance planning, goals analysis and integrated investment plan.
Q. What are implementation services?
A. Implementation scope depends upon case to case. As an example, this could include setting up your mutual fund accounts, managing your investments, supporting you with platforms to transact and view investments, sending you monthly reports, sending you capital gain reports, helpoing you to consolidate insurance policies, giving you goal based view and integrating the investments for planning reviews.
Q. Is it mandatory to implement the plan through your firm?
A. No. You can implement the plan on your own. Choosing how you implement the plan has an impact on overall efforts, pricing and value addition of the engagement.
Q. How is the fee only engagement model helping us?
A. With complete transparency, this allows you to manage your advisory costs. With zero commission products, as an example, the direct plan units of mutual funds carry a higher NAV. This helps for your portfolio to grow higher in the long term with compounding benefit. Based on the composition of the portfolio, the NAV difference itself can make up for a good part of the 1% billing.
Q. So as my portfolio size increases, your fees will also increase?
A. In general, yes. We certainly like mutual benefits as our engagement and your portfolio grows. Once your portfolio grows, we could work out some reduction in our overall fees.
Q. Do we need to have a minimum size of a portfolio to engage you?
A. No. That said, you may find our fees to be substantial unless your financial portfolio is of ~ Rs. 1 Crore.
Q. Ours would be a 'not so complex' engagement. Can we get some discounts?
A. Sorry, we cannot reduce the fees even if you think that our efforts may not be high.
Our pricing depends upon your needs, value that can be generated, our efforts and your affordability. We propose to grow along with you. We suggest you compare our Sample Plan and review what we do & how we do.
If you find our services to be expensive or cannot afford it, then here are few suggestions.