It was only in the mid-2000s that financial advisory entered India, with the Financial Planning Standards Board spreading its wings beyond the US to issue certified financial planner (CFP) certificates. When FPSB came to India in 2004, the concept of financial planning took center stage, especially after 2007 when the Securities and Exchange Board of India (Sebi) allowed direct retail investments in mutual funds.
It was much later in 2013 that Sebi floated the concept of Sebi-registered financial advisors, who are now among the most trusted individuals for disseminating financial advice.
Still, India remains massively underadvised though the appetite for investments has gone up manifold. After 10 years since the inception of Sebi RIAS, there are only 1,331 RIAS in India against at least 120 million demat account holders and a little over 150 million mutual fund folios, as on July 13, 2023, according to the latest data. There are 139,764 MFDs in India as on June 30, 2023. To know more about financial advisory in India, read our freedom special (bit.ly/3Eoajrv).
Little wonder that holistic financial advice still eludes a large chunk of Indian investors, especially in tier II and tier II cities, who remain dependent on brokers, agents, CAS, bank managers, and even financial influencers or finfluencers.
The latter are now under Sebi's scrutiny. In a recent interaction, Sebi chairperson Madhabi Puri Buch indicated that some regulatory measures for financial influencers are in the offing. Moreover, the Advertising Standards Council of India (ASCI) recently made it mandatory for finfluencers to register with Sebi or the Insurance Regulatory and Development Authority of India (Irdai), depending on the kind of advice they were providing.
The Way Forward
هذه القصة مأخوذة من طبعة September 2023 من Outlook Money.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك ? تسجيل الدخول
هذه القصة مأخوذة من طبعة September 2023 من Outlook Money.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك? تسجيل الدخول
BUDGET & YOU: NEW REGIME BEATS OLD IN FY26
Lower tax slabs and nil tax on incomes up to 12 lakh has not only provided relief to middle-class families but also rendered the old tax regime irrelevant for most of them. The government also renewed its focus on senior citizens
Consistent Returns In Hybrid Space
The Indian equity market is going through rough waters, leaving investors uncertain about whether to choose equity or fixed-income investments. Experts, meanwhile, predict higher volatility and recommend a safer approach.
BEHIND THE MIND GAMES THAT END IN 'DIGITAL ARREST'
The new scam of digital arrest employs psychological pressure to dupe vulnerable victims, who go through a phase of trauma and fear. We tell you how it works, whether the government is doing enough to curb the menace, and how you can keep yourself safe
Boost To Consumption, But Don't Buy Blindly
With the budget putting more money into the hands of people to boost consumption and increasing foreign direct investment in insurance, certain consumer-oriented sectors, such as FMCG, auto, as well as manufacturing are expected to do well, but think before investing
Pre-Existing Diseases In Insurance
Understanding pre-existing diseases (PEDS) in health insurance is crucial because they can affect your coverage and premiums. Pre-existing conditions, such as diabetes or heart disease, are health issues you may already have and know of before purchasing insurance.
'Govts Are Often Influenced By Private Interests, And Don't Focus On Health'
Longevity is not about going to the gym or having superfoods, but living in an environment that promotes a healthy lifestyle. Dan Buettner, the Blue Zones founder, National Geographic fellow, best-selling author and the producer of the Emmy Award-winning 'Live to 100: Secrets of the Blue Zone' series, learnt this during his decades-long research into five blue zones of the world. In an interview with Nidhi Sinha, Editor, Outlook Money, as part of the Wealth Wizards series, he talks about another kind of wealth, a healthy and fulfilling long life. He also talks about blue zones, and how policy matters when it comes to improving the health, lifestyle and longevity of the population
The 'Gap' In Long-Term Returns
There is a significant gap in the nominal and inflation-adjusted returns across asset classes. So, reading long-term trends is important before making investing decisions
Changed Jobs? Where is Your EPF Money?
For many employees, transfer of EPF becomes a nightmare when changing jobs. We give you the likely problem scenarios and what you should do for a seamless transfer of your EPF upon changing jobs and states
Old-New Break-Even Point Is High
The break-even point for deductions to choose between the old and new tax regimes has increased to ₹8.50 lakh for income of ₹24.75 lakh and above. Normally, deductions and exemptions commonly claimed by salaried individuals do not exceed ₹8.50 lakh
How Not To Be Financially Vulnerable
We often naïvely assume that our monthly pay cheques will cover whatever life throws our way. But it may not cover all our emergencies, which is why we need to create a safety net
