Two ways to begin.
Mutual fund solutions as an AMFI registered distributor, and fee based advice as a SEBI Registered Investment Adviser. One capacity per engagement, never both.
The two capacities
SEBI Registered Investment Adviser
Advisory
- Fiduciary investment advice
- We advise, you invest
- Portfolio reviews at regular intervals
AMFI Registered Mutual Fund Distributor
Mutual Fund Solutions
- Goal based mutual fund selection
- SIP or lump sum amount
- Fund reviews at regular intervals
- Investments made directly with fund houses, in your name
The capacity is stated in writing before anything begins, and what each one costs is set out below.
Fees
Set out in writing before an engagement begins.
Advisory
Fee on assets under advice, billed every quarter
| Assets under advice | Annual | Per quarter |
|---|---|---|
| Up to ₹1 crore | 1.75% | 0.4375% |
| ₹1 crore to ₹5 crore | 1.50% | 0.375% |
| Above ₹5 crore | 1.25% | 0.3125% |
- Rates are annual and applied slab-wise, so each rate applies only to the portion of assets within its band.
- Billed once a quarter, in arrears, at a quarter of the annual rate, on the average daily value of the assets under advice during that quarter.
- All fees are exclusive of GST, charged at the prevailing rate.
For example. On ₹3 crore, the fee is 1.75% on the first ₹1 crore and 1.50% on the next ₹2 crore, ₹4,75,000 a year before GST. That is ₹1,18,750 invoiced at the end of each quarter, at a blended 1.58% a year.
Mutual fund distribution
No fee charged to you
Under mutual fund distribution the firm is paid trail commission by the asset management companies, at rates each AMC sets under AMFI standards. It is embedded in the regular plan expense ratio rather than invoiced to you, and it is disclosed in full in the engagement letter signed at onboarding.
One capacity applies per engagement. The same assets are not advised for a fee and distributed for a commission at the same time. Which capacity applies is agreed in writing before the engagement begins.
No lock-in and no exit penalty. The engagement can be ended at any time with short written notice.
SEBI caps annual fees for individual Investment Advisers at 2.50% of assets under advice. This schedule sits within that limit.
Fees are agreed in writing before any engagement begins, and no fee is charged that is not set out in that agreement. Where the firm acts as an AMFI registered mutual fund distributor, it does not charge an advisory fee, and is instead paid commission by the asset management company out of the scheme. That commission varies by scheme and is disclosed on request. The two capacities are never combined in a single engagement, so you always know which one you are in and how the firm is paid for it.
Suitability is the first test. Product selection is the second.
The engagement,
in six stops.
Every relationship follows the same documented path.
How it begins
Understanding you
Two things are assessed separately: how much loss the portfolio can absorb, and how much loss you can live with. Where the answers differ, the more cautious one governs.
Matching the offering
Your profile decides which of the four offerings fits, from capital preservation to quant based equity. Anything that fails the suitability test is not recommended, whatever its merits.
A written plan
An Investment Policy Statement, signed by both of us. It records your profile, the offering, the agreed mix including how much gold sits alongside any equity holding, and how often the portfolio is reviewed.
How it continues
Reviews on a schedule
A monthly check, a quarterly review, and an annual reassessment of your profile. A change in your circumstances brings a review forward.
Changes made by rule
The equity offering is rebuilt each quarter by its stated method, and holdings are sold between rebuilds only on a governance failure. Elsewhere the portfolio is rebalanced back to its agreed mix, with new money used first and tax and cost weighed before anything is sold.
Plain reporting
Statements set out what you hold, what changed, and why.
FAQs.
A first conversation carries no fee and no obligation.