What is a Financial Advisory or a wealth management Company,

Why you need one and when should you Get One?
Financial Advisor – Why should you hire one?

You might be curious as to what a financial advisor offers. These professionals, in general, assist you in making decisions
about what to do with your money, which may involve investments or other options. SEBI in 2013 brought in
‘Investments Advisers Regulations’ to regulate activities of these financial advisors. In Indian Perspective the demand for
such Wealth management has boomed but there remains a huge gap between the demand and supply of these Advisors
as is evident by SEBI recent released data according to which there are Only 1 Registered Investment Advisor for 76,500
MF Investors and Demat Account Holders in India.

How Much Does Indian Financial Advisor Services Cost?

We're all familiar with the concept of paying for expert assistance; we all pay our doctors, lawyers, and accountants. It
appears, however, that we are already receiving free investment advice. Bank relationship managers, insurance and
mutual fund agents, numerous mutual fund or insurance awareness websites, and professional articles on the internet
all freely offer investment advice. Why are we now being asked to pay for it?

Unfortunately, there is no such thing as free advice. Because investors assume they are obtaining free assistance and
guidance simply by purchasing a product, financial products with a commission-based remuneration structure have fared
well globally. However, most of this "free advice" is either too broad or basic to be effective, or worse, is a sales pitch
designed to meet a sales quota. Because financial planning is not a commodity, uniformity is impossible. The cost and
charges of a financial advisor are determined by the criteria and package offered by the financial planner (selected or
comprehensive) as well as the service and technique involved in financial planning.

Let’s learn about what the job is to find out the best estimation of a financial advisor’s fee and how are you able to
benefit from them. Financial advisors, in short, are responsible for:

 Establishing a comprehensive strategy to achieve the financial objectives.

 Invest your wealth in the most productive way possible and expand it.
 Assists in preventing the filing of heavy taxes.
 Manage risks by building reserves that are pre-planned.
 In order to beat inflation, control savings.

The annual fee for financial advisors varies from as little as Rs 6,000 to Rs 40,000. In terms of investment planning, risk
management, asset management, and tax planning considering inflation, uncertain employment, health issues and
potential financial ambitions such as higher education, early retirement, travel, etc., people are increasingly seeking
advice from a financial advisor nowadays.

What are the Different Types of Financial Advisors?

Fee-only advisors, as the name suggests, earn their remuneration only in the form of fees from the client (that is you).
So, if you hire them, you pay a flat fee or on an hourly or project basis,

Fee-based advisors, in turn, might not charge you at all. However, they are compensated by way of commissions when
you invest through them. They hold licenses that allow them to distribute investment and insurance products for a
commission, whereas,

Commission-based advisor's income is earned entirely on the products they sell or the accounts that are opened.
Products for commission-based advisors include financial instruments, such as insurance packages and mutual funds.
The more transactions they complete, or the more accounts they open, the more they get paid.
How Different Types of Financial Advisors Get Paid
Fee-Only Fee-Based Commission-Based
Earns money when you buy specific investments No Yes Yes
Earns money when you buy a specific insurance product No Yes Yes
Earns money based on how well your investment portfolio performs Yes Sometimes No
Has a conflict of interest No Yes Yes

Who is Better?

Fee-based advisors, in turn, might not charge you at all. However, they are compensated by way of commissions when
you invest through them. They hold licenses that allow them to distribute investment and insurance products for a
commission. Hence they may be biased toward some products wherein Fee-only Advisors are more transparent, they
are more client oriented rather than product oriented because of there remuneration structure.

How to choose one?

The SEBI website should help you see the list of SEBI Registered Investment Advisers (RIA) in India. This list is exhaustive,
but doesn’t differentiate between, fee based and fee only financial planners.

AZ Capital is one of very few Fee Only Financial Planner in India, you can book a free consultation call with us to
understand our fee only financial planning services.

How AZ Capital will help you make better Financial Planning & achieve your Goal?

AZ Capital is a wealth management and investment advisory firm that helps everyday people (like you and me) invest
wisely to reach financial objectives, organize their personal finances, profitably invest in stocks, and, most importantly,
apply common sense to achieve what we want in life.

Our goal is to put the pieces of your financial puzzle together in the right order. We guide you through the process of
wealth growth via stewardship, not salesmanship, by providing unbiased financial advising services you can trust and
rely on.

In certain situations, we collaborate with other financial specialists as a strategic partner. This additional knowledge is
part of our strategy to ensure you meet your financial and lifestyle objectives. Institutional Research Firm is one of the
experts.

When financial advice is easily available free (as many believe it) from family, friends, colleagues and online, then what
can be the reason for paying a fee for getting it? Many in India think like this. There is a general notion that financial
advice should be free. But this isn’t correct. If you are taking advice from a Fee-Only Investment Advisor that means you
will be paying them for getting financial advice. Just like a patient goes to a doctor and pays a fee after getting proper
diagnosis done & prescription from Doctor. Since fee-only adviser is being paid only by the client, he will work only for
the client. He will not be affiliated with any organization, mutual funds AMC, and insurance companies. There will be no
hidden commissions or sales incentives to influence the advisor’s investment recommendations. And that is something
really worth paying for – getting proper and conflict-free financial advice.

If someone is offering free advice to you, it clearly means that he is earning from some other source. And that source
will be commissions from the sale of products which he sells along with doling out random free financial advice.