Next steps

  • For further enquiries, please send me an email at:     info@fiduciaries.in  
  • In your email, please send me:
    • A link to your LinkedIn profile (In case you don’t have a LinkedIn profile, then please add a brief description of your professional / business background) and
    • Top-of-mind questions that you have
  • If we take this forward, there will be an introductory audio call, which will be free of cost

In closing...

Human nature pushes all of us to feel that paying an amount explicitly is more painful than paying ten times that amount in an indirect and hidden manner. But 'feelings' are a poor basis for financial decisions.  So, it’s not surprising that when Charlie Munger (whom Warren Buffett refers to as the wisest investor in the world) was asked to summarize the secret to his success in one word, his answer was that he is “rational”.

A good way to understand this in the context of Investment Advice is the following example.

All of us understand that it’s rational to directly pay a doctor a fair fee, rather than pay a low (or no) fee to get medical advice that is indirectly paid for by commissions from pharmaceutical companies or diagnostic labs or manufacturers of implants. Here, the doctor may be considered a 'fiduciary', and that puts ethical pressure on the doctor to put the patient’s interests ahead of his own.

It would be useful to reiterate here, that the regulation does not require a Distributor (in the Commission Based Business Model) to put the client’s interests ahead of his own interests. Hence, the same rational approach should be applied to how one pays for investment advice.