Fees

  • Update: Due to COVID-19 and the lockdown, I am not engaging with new clients nor doing introductory calls with new clients from 19th March 2020 till at least September 2020; So for now, please ignore the information below
  • My current fees are:
    • For new clients, Rs 80,000 for the first twelve-months
    • If an existing client chooses to renew the engagement, then Rs 40,000 for the subsequent twelve-months
    • This is effectively Rs 4,000 per billable hour ; Billable hours includes hour 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 for all clients

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 twelve-months
    • As a result, a majority of my clients do not renew the engagement beyond the first twelve-months (they may renew the engagement a few years later if there is a significant change in their life)
  • Fees are based on 20 hours of effort. This is a radically different from the Robo++ Process:
    • The fees are based on the assumption of a maximum of 20 billable hours of effort during the first twelve-months 
    • Billable hours includes both discussions and back-end work that is specific to one or a few clients. But it does not include a significant amount of effort for research that is relevant for all clients 
    • The number of billable hours of effort during the subsequent twelve-months is proportionately lower
    • This Customized Process is radically different from the 5-hours-of-effort in the first-year 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 25-29 and your net worth is >= Rs 1 cr
      • If your age is 30-34 and your net worth is >= Rs 2 cr
      • If your age is 35-39 and your net worth is >= Rs 3 cr
      • If your age is 40-44 and your net worth is >= Rs 4 cr
      • If your age is 45-49 and your net worth is >= Rs 5 cr
      • If your age is 50-54 and your net worth is >= Rs 6 cr
      • If your age is 55-59 and your net worth is >= Rs 7 cr
      • If your age is 60-64 and your net worth is >= Rs 8 cr
      • If your age is 65-70 and your net worth is >= Rs 7 cr
      • Note 1: In case you are entitled to a pension from your employer 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 (their number of hours of effort may vary between 15 and 20 hours) and (b) among mutual funds, primarily recommends index funds (this article mentions a couple of RIAs who recommend index funds)
    • 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 twelve-months 
    • The fees are payable in advance at the start of the twelve-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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