Fees

  • My current fees are:
    • For new clients, Rs 1,25,000 for 12 hours and 30 minutes of effort 
    • For current / former clients that chooses to renew the engagement, Rs 30,000 for 3 hours 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
    • The fees are effectively Rs 10,000 per hour of effort
    • The fees are inclusive of any taxes
    • 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
    • I provide clients with an updated Timesheet during the engagement

Details of Fees

  • Fees are based on 12.5 hours of effort. This is a radically different from the Robo++ Process
    • The fees are based on the assumption of 12 hours and 30 minutes of effort for new clients and 3 hours 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) 
    • The engagement with new clients is for 12.5 hours of effort because (a) SEBI regulations are primarily focused on protecting Lower-Middle-Class and (b) hence SEBI regulations make it almost impossible for me to offer an engagement with an even higher number of hours of effort to new Upper-Middle-Class clients
  • Majority of clients do not feel the need to renew the engagement
    • This is because I recommend a simple portfolio of Passive Index Funds etc that the client can usually manage by themselves
    • Clients that do not renew the engagement in the 2nd year may renew in the 3rd or 4th year when something changes in their life
  • 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
  • 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
  • Renewal fees will increase over time
    • The renewal fee will increase over the years for all clients who choose to renew the engagement 
  • I am the only Hourly-Fee Financial Planner in India

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 (i.e. approximately USD 1 million)
    • 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 a Fixed-Fee RIA who: 
      • (a) is among the tiny sub-set of Fixed-Fee RIAs who follow the Customized Process (12 hours of effort per new client) and
      • (b) at least within Equity mutual funds, recommends only Index Funds (e.g. Swapnil Kendhe whose fees are effectively Rs 2,500 per hour which is exceptional value for money) or else then, prefers to recommend Index Funds (e.g. S R Srinivasan). This is because every single competent RIA prefers to recommend only Passive Index Funds
  • 12.5 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

Next section: