Fees

  • Update: Due to COVID-19 and the lockdown, I am not engaging with new clients nor doing introductory calls with new clients since 19th March 2020; So for now, please ignore the information below
  • My current fees are:
    • For new clients, Rs 68,000 for 17 hours of effort over up to six-months
    • If an existing client chooses to renew the engagement, then Rs 20,000 for 5 hours of effort over up to six-months
    • This is effectively Rs 4,000 per hour of effort (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 inclusive of any taxes

Details

  • Majority of 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 client's do not feel compelled to continue the engagement beyond the first six-months
    • As a result, a majority of my clients do not renew the engagement beyond the first six-months (they may renew the engagement a couple of years later 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 a maximum of 17 hours of effort for new clients over up to six-months... 
    • ...and a maximum of 5 hours of effort for renewal clients over up to six-months
    • This Customized Process is radically different from the 4-hours-of-effort with new clients in the first-six-months Robo++ Process that is prevalent in India (details are in the Approach page) 
  • Focus on clients with a net worth of Rs 1 to 100 cr:
    • I focus on clients with a net worth of Rs 1 cr to Rs 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 in the first-six-months) and (b) at least within Equity mutual funds, recommends only Index Funds (e.g. Swapnil Kendhe ) or else is open to recommending only Index Funds (e.g. S R Srinivasan)
    • Clients could be resident Indians or NRIs
  • Renewal fees will increase over time and fees are payable in advance:
    • The renewal fee will increase over the years for all clients who choose to continue to renew the engagement for an additional six-months 
    • The fees are payable in advance at the start of the six-month period of engagement (To clarify, the introductory audio call is free of cost. But I do not provide any investment advice during this introductory audio call)
    • I do not offer any other engagement with a reduced scope and lower fees

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