07 Aug

Value Additions by Our fee based Financial Planning Practice

The professional financial planning and advisory fees charged by us are visible and possibly pinch many clients. However, the fees should be seen in the context of the following value additions done by us while engaging our financial planning services:

  1. Tax Efficiency: Financial advice given by us will make the financial portfolio tax efficient in relation to what it was before thereby, reducing the overall taxes in the years to come.

  2. Lower costs: Financial product costs which are not generally visible can eat into the overall returns. We would help in selecting low cost variants of similar products which would considerably save on costs, thereby benefiting the clients in increasing returns.

  3. Wealth Protection: We give a lot of emphasis to contingency funds and protection of our clients’ wealth through proper selection of insurance plans. Building up a contingency fund and low cost insurance portfolios are a very important priority in our practise.

  4. Process-based Approach: We have a process based approach where we fix an overall asset allocation strategy taking into consideration the risk profile, time horizon and financial goals of the client. This would not make the client too aggressive or conservative and thereby get better risk-adjusted returns.

  5. Diversification: A well diversified strategy within an asset class will mitigate the risk of product/ style concentration. We always have a diversified strategy within an asset class so as to avoid negative surprises.

  6. Product Selection: We would assist in selecting superior products within an asset class thereby increasing Returns and not Risks.

  7. Investment Strategy: Investment in certain financial products need to be done on a gradual basis and /or based on opportunities. Exits also need to be done based on certain factors. We would have an overall strategy for the same rather than having an adhoc approach.

  8. Transparency: As our only earning in the Financial Planning engagement is fees and not commissions, we will be on the same side as the client. Unnecessary product suggestion or portfolio churning would not be the motive while constructing and reviewing the Financial Plan.

  9. Financial Path: We will build an overall path for the client’s financial journey so that the client is able to reach his financial goals with minimum hurdles.

  10. Counselling: We will counsel the client on a lot of issues which may not be of financial nature but may have a financial bearing on the client’s personal finances.

  11. Saying NO: Many a times we would say NO to certain financial products/ strategies keeping in mind the overall benefit of the client. This would save the client on unnecessary costs and regrets.

  12. Regulations: We are registered with SEBI as an Investment Adviser (with registration No. INA200004250) which makes us more accountable for your personal finances.

The above value additions are not easily measurable but the fees to be paid to us, are. It would hence be wise to check the overall benefits before accepting/rejecting our fee based proposition. Our fees are also on the overall financial wealth (rather than only one asset class or product) so that, we get a better overview on your overall finances to give the best advice. One might be a good driver and follow good traffic discipline. However, it still pays to renew one’s motor vehicle Insurance, just in case some other vehicle hits yours!! Partnering with us would help you to protect your financial wealth.

We are passionate about our profession and look forward to engage and continue our association in the years to come. Feel free to get in touch with us for any further clarifications on the same.

Naveen Julian Rego-CFPCM

SEBI Registered Investment Adviser

INA200004250

23rd July, 2019

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