One of our Gen Z interns recently analyzed three models of financial guidance:

1. DIY investing

2. Distribution-led advice through agents, brokers, and bankers

3. Fee-only advice from SEBI-registered investment advisers

His conclusion surprised him. Fee-only advice was not only the most transparent model but, in many cases, also the most economical over the long term. The value created through better asset allocation, tax efficiency, behavioral coaching, and avoiding costly mistakes could often be many times the advisory fee paid.

His immediate question to me was:

"If that is true, why do investors continue to flock to agents, brokers, bankers, and finfluencers? Why isn't the tribe of fee-only advisers growing faster?"

After more than two decades as a financial planner, my answer was simple.

Most investors find it difficult to pay for something whose benefits will be realized in the future. The advisory fee is visible today. The value created by good advice is often invisible and accumulates gradually over many years.

As a result, many investors choose what appears to be a lower-cost option.

The DIY investor may not account for the time spent researching, tracking portfolios, and correcting mistakes. Time that could have been spent on career, business, family, or personal pursuits.

Similarly, advice from a distributor, banker, or agent may appear "free," but the costs can show up elsewhere—in the form of higher-expense products, unsuitable recommendations, excessive churn, or inefficient portfolio structures.

These costs are rarely visible. Yet they are very real.

My intern then asked:

"How do we change this mindset?"

My answer was straightforward.

By educating. By sharing knowledge. By communicating real-life examples. By helping investors understand not just the cost of advice, but the cost of poor advice and poor decisions.

It is a long journey.

Over the years, we have lost prospective and existing clients purely because of fees. Some focused only on what they were paying and not on the value being created through planning, portfolio construction, tax efficiency, and disciplined execution.

At the same time, we have been fortunate to work with clients who understand the value of professional advice. Some have even encouraged us to increase our fees, believing that better compensation allows us to invest in people, technology, research, and service quality.

We remain deeply grateful to such clients.

A final thought:

Financial advice is never truly free. The only question is whether the cost is transparent and visible, or hidden within products, commissions, and decisions.

Happy Financial Planning!

Naveen Julian Rego – CFP®

MD & Principal Officer

Naveen Rego Capital

SEBI Registered Investment Adviser

Reg No: INA000019211

BSE Membership ID: 2178

Disclaimers:

1. Investment in the securities market is subject to market risks. Read all the related documents carefully before investing.

2. Registration granted by SEBI, membership of BSE and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

3. Financial products recommended by us which are under the jurisdiction of other regulators are beyond the scope of SEBI’s grievance mechanism.