Fees

  • My current fees are:
    • For new clients, Rs 1,19,000 for 17 hours of effort 
    • For current / former clients that chooses to renew the engagement, Rs 24,500 for 3 hours and 30 minutes of effort
    • The hours of effort are ideally for a period of up to 6 months but could be used over a period of up to 12 months
    • Hours of effort includes hours of discussion and back-end work that is specific to one or a few clients but it does not include research effort that is common across all clients
    • The fees are effectively Rs 7,000 per hour of effort
    • The fees are inclusive of any taxes

Details of Fees

  • Most clients do not feel the need to renew the engagement
    • I like to design a very simple portfolio that neither I nor the client have to review. Hence most clients do not feel compelled to continue the engagement beyond the initial engagement 
    • As a result, a majority of my clients do not renew the engagement immediately after the initial engagement (they may renew the engagement a couple of years later e.g. if there is a significant change in their life)
  • Fees are based on 17 hours of effort. This is a radically different from the Robo++ Process
    • The fees are based on the assumption of 17 hours of effort for new clients and 3 hours and 30 minutes of effort for renewal clients
    • This Customized Process is radically different from the 4-hours-of-effort with new clients Robo++ Process that is prevalent in India (details are in the Approach page) 
    • I provide clients with an updated Timesheet during the engagement
  • Fees are payable in advance
    • The fees are payable in advance at the start of the engagement
    • To clarify, the introductory audio call is free of cost. But I do not provide any investment advice during this introductory audio call
  • Fees are the same for Resident Indians as well as NRIs
    • I do not offer any other engagement with a reduced scope and lower fees
  • Renewal fees will increase over time
    • The renewal fee will increase over the years for all clients who choose to renew the engagement 
  • I was the first RIA in India to transparently disclose my hourly fee and currently I am one of only two RIAs that does so
    • You could also refer to the FAQ page where FAQ number 7 covers 'What is the primary driver of your specific hourly fee?'
    • The same FAQ also explains that the hourly fee that the client sees appears quite high while the hourly fee that the RIA gets is one-tenth of that

Focus on clients with a net worth of Rs 1 to 100 cr

  • Net worth in this specific context refers to a couple's total value of all assets including real estate (even if you live in it) and any very likely inheritance; minus total liabilities
  • You could consider this engagement:
    • If your age is 26-30 and your net worth is >= Rs 1 cr
    • If your age is 31-35 and your net worth is >= Rs 2 cr
    • If your age is 36-40 and your net worth is >= Rs 3 cr
    • If your age is 41-45 and your net worth is >= Rs 4 cr
    • If your age is 46-50 and your net worth is >= Rs 5 cr
    • If your age is 51-55 and your net worth is >= Rs 6 cr
    • If your age is 56-60 and your net worth is >= Rs 7 cr
    • If your age is 61-65 and your net worth is >= Rs 8 cr
    • If your age is 66-70 and your net worth is >= Rs 7 cr
    • Note 1: In case you are entitled to a pension from your employer (i.e. not NPS) or you are a Doctor / Dentist who is less than 45 years old, then consider half of the above mentioned amounts
    • Note 2: If your net worth is less than the amounts mentioned above, then the engagement will not be able to provide you value-for-money. Hence you would be better off contacting another Advice-Only RIA who (a) follows the Customized Process (12-17 hours of effort per new client) and (b) at least within Equity mutual funds, recommends only Index Funds (e.g. Swapnil Kendhe ) or else then, prefers to recommend Index Funds (e.g. S R Srinivasan)
  • 17 hours of effort will not be sufficient for an engagement with a joint-family. So the scope will have to be worked out in such  a case

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