Fees

My current fees are:

  • For new clients, Rs 40,000 for the first twelve-months
  • If an existing client chooses to renew the engagement, then Rs 17,500 for the subsequent twelve-months 

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 (which is a radically different approach):
    • The fees are based on the assumption of 20 hours of effort during the first twelve-months 
    • This is radically different from the 5-hours-of-effort approach that is more common in India (details are in the page about my Approach)
    • Discussions consume half of these hours and back-end work consumes the other half of these hours
    • The number of hours of effort during the subsequent twelve-months is proportionately lower 
  • 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 refers to the total value of all assets including real estate (even if you live in it) minus total liabilities of a couple. They could be resident Indians or NRIs
    • Based on various factors, I recommend to a significant proportion of potential clients that they may be better off (or could also consider) engaging with some other Advice-Only RIA whose (a) approach is a better fit for them or (b) absolute fee is lower...
    • ...For example, a 60 year old couple with a net worth of Rs 1 cr and no pension, should engage with some other Advice-Only RIA with a lower absolute fee. On the other hand, a 30 year old couple with a net worth of Rs 1 cr, may find the fees to be appropriate 
  • 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)

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