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In today’s world, financial planning has become one of the most vital factors in achieving financial goals. Be it long-term or short-term, financial planning allows the effective achievement of financial goals by taking savings and investing them in various financial instruments.
However, the Indian financial market includes numerous investment instruments, some of which have a high potential to earn investors profits but are complex. However, investing based on extensive market research and financial knowledge is always safer.
Since investors do not have the time or resources to gain such extensive financial knowledge to analyse securities, consulting a financial advisor is the only way to invest successfully. As financial advisors charge a fee for their financial advisory services (which effectively lowers the profits earned), it is important to have a detailed understanding of financial advisor fees in India.
This blog will work as a guide on typical investment advisor fees. But before you learn about financial advisors and their charges, it is wise to know what they do.
In India, financial advisors help people plan and manage their money wisely. Depending on how they earn, they are mainly classified into two types:
The Securities and Exchange Board of India (SEBI) has laid down clear rules to ensure transparency and fairness in how Registered Investment Advisors (RIAs) charge their clients. As per SEBI guidelines, RIAs can follow either of the two fee models, but not both:
The amount a financial advisor charges in India can change from person to person. It depends on a few simple things. Knowing these can help you pick the right advisor for your needs and budget.
Some advisors charge a fixed fee or charge by the hour. Others earn money by selling products like insurance or mutual funds and get a commission.
If the advisor is helping you with many things like retirement planning, tax advice, or managing your investments, they may charge more. Someone who only gives basic advice will likely cost less.
Some advisors charge based on how much money you invest with them. If your investment is large, the total fee may be more, but the percentage might be lower.
If you have a business, several income sources, or property abroad, your financial plan may be more complex. This usually means the advisor will charge a higher fee.
Advisors who have many years of experience or special qualifications like CFP or CFA may charge more. Their advice is usually more detailed and reliable.
Advisors in big cities like Mumbai or Delhi may have higher fees. This is mostly because their costs to run a business are also higher.
If you talk to your advisor online or use an app, it may cost less. Face-to-face meetings usually come at a higher price.
The role of financial advisor comes with numerous profitable and professional growth opportunities. To create a fruitful advisory and financial management business, one can become a financial advisor, authorised partner, or IIFL Capital Services Limited partner. When you become a financial advisor with IIFL through the authorised partner business model, you get access to a host of industry-best benefits. The benefits for a financial advisor range from professional to investment opportunities, along with unique features for better financial management.
IIFL Capital Services Limited offers up to 70% brokerage share to the financial advisor’s charges which are the highest in the industry.
A financial advisor can choose from various financial products such as equity, insurance, mutual funds, etc.
When you become a financial advisor, IIFL provides expert personal assistance that helps manage your business.
Financial advisors get access to clients’ reports to manage their clients’ finances better.
Keep a balance between home and work, as you do not need any office and work from home when you become an IIFL partner or financial advisor.
If you want to plan your finances systematically, you can multiply your wealth by investing in various financial instruments in the Indian financial market. However, as the structure of such instruments may seem complex, it is wise to consult a financial advisor. Financial advisors can use different methods based on different views, so the process may vary. It’s up to you to settle on a particular process and work with a financial advisor, so make sure he does everything in your best interest.
Always note that those who have your best interests at heart are the best financial advisors. For the same thing, you should contact reputable franchises like IIFL to stay bullish on your future by becoming a financial advisor.
Become a Partner & Earn up
to 1 Lakh* per Month!
Financial advisors in India may charge around ₹15,000 in the first year. Fees can vary based on investment size and the range of services offered.
You can join IIFL as a financial advisor through their Authorised Partner model. Visit the IIFL Capital Services Limited website to apply and learn more.
Check if the fee is fixed, hourly, or based on assets under management, and compare it with the services offered. Also consider the advisor’s track record, transparency in charges, and how the fee compares with market standards.
Yes, many people find the benefits of expert guidance and peace of mind outweigh the costs. It depends on your financial goals and comfort with managing money on your own.
Yes, financial advisory fees are often negotiable based on service scope and complexity. Open communication with your advisor can help you agree on fair pricing.
Become a Partner & Earn up
to 1 Lakh* per Month!
