Limit RIA fees to 3% of household budget
Business Standard|November 18, 2024
NO FREE LUNCH
AVINASH LUTHRIA
Limit RIA fees to 3% of household budget

Only around three dozen Securities and Exchange Board of India (Sebi)-registered investment advisors (RIAs), i.e., financial planners, charge a fixed fee.

The rest charge a percentage of the assets under advice (AUA).

Depending on an RIA's experience, academic qualifications, and the number of hours of effort put in (by a fixed-fee RIA), the highest-fee RIA in India can charge 10 times the lowest-fee RIA.

An important decision a client must make is the appropriate level of fee they should pay an RIA.

In my view, the appropriate amount a client should spend on average annual fees over the first five years of engagement should be around 3 per cent of the client's annual household budget.

This rule of thumb refers only to the client's budget and not to the RIA's fee structure.

Let us see how this works using an illustration.

この記事は Business Standard の November 18, 2024 版に掲載されています。

7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。

この記事は Business Standard の November 18, 2024 版に掲載されています。

7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。

BUSINESS STANDARDのその他の記事すべて表示
India Needs to Innovate & Reduce Debt to Become Developed by 2047
Business Standard

India Needs to Innovate & Reduce Debt to Become Developed by 2047

India's gross domestic product (GDP) growth accelerated to 6.2 percent in the third quarter of FY25, up from 5.6 percent in the previous quarter.

time-read
1 min  |
March 11, 2025
Rupee Sees Worst Fall in 2 Weeks, Closing at 87.34 Against the Dollar
Business Standard

Rupee Sees Worst Fall in 2 Weeks, Closing at 87.34 Against the Dollar

The rupee fell the most in two weeks, weakening by 0.52 percent against the dollar on Monday due to strong demand for dollars in the non-deliverable forward (NDF) market.

time-read
1 min  |
March 11, 2025
Business Standard

EU Investors Eye Fresh Investments in Indian Equities: Macquarie

Investors from the European Union (EU) nations are looking to make fresh investments in domestic equities by cutting their underweight position, according to financial giant Macquarie.

time-read
1 min  |
March 11, 2025
Simplilearn Plans to Relaunch Fresher Upskilling Vertical
Business Standard

Simplilearn Plans to Relaunch Fresher Upskilling Vertical

Edtech Firm to Restart Study Abroad Programme as Well

time-read
2 分  |
March 11, 2025
Experts brainstorm on new possibilities in India's power sector by 2047 and Global Trends in Energy Transition @GRIDCON 2025
Business Standard

Experts brainstorm on new possibilities in India's power sector by 2047 and Global Trends in Energy Transition @GRIDCON 2025

The theme of POWERGRID led GRIDCON 2025, a premier global event in the power transmission industry Innovations in Grid Resilience: Strategies for enhancing reliability Sustainability and Adaptability of Power Transmission System

time-read
4 分  |
March 11, 2025
Ukraine overtakes India as top arms importer: Sipri
Business Standard

Ukraine overtakes India as top arms importer: Sipri

India was world's biggest importer of arms in 2019-23

time-read
2 分  |
March 11, 2025
Business Standard

IndusInd Bank CEO search looms as shares drop 3.86%

Following the Reserve Bank of India's (RBI's) approval for only a one-year extension to IndusInd Bank's Managing Director (MD) and Chief Executive Officer (CEO) Sumant Kathpalia, instead of the three-year tenor requested by the bank's board, brokerages expect the bank to initiate the process of selecting a new CEO.

time-read
2 分  |
March 11, 2025
Business Standard

India's obesity crisis

Reorienting food policies can address the problem

time-read
2 分  |
March 11, 2025
Business Standard

Sun Pharma to expand oncology portfolio with Checkpoint buy

\"This acquisition further bolsters our innovative portfolio in onco-dermatology,\" Sun Pharma's Chairman and MD Dilip Shanghvi said.

time-read
1 min  |
March 11, 2025
How Technology Can Help in Inflation Forecasting
Business Standard

How Technology Can Help in Inflation Forecasting

The integration of AI in economic forecasting, specifically inflation prediction, is a burgeoning field that leverages advancements in ML and natural language processing

time-read
5 分  |
March 11, 2025