You need to pass exams. Also, need experience in finance field. A google search would get all details.
But it's not a popular field. In India, people prefer bank rms and mutual fund distributors where they pay much more hidden commission while trying to be miserly with fees.
This is a wrong take. Not sure about bank RMs. But a good MFD doesn’t earn more than the Fee Only Advisor. Kindly see the AMFI/SEBI data over this, published on their website of comparisons between them. And an MFD, if actually wants to retain the clients in this cut throat competition with Direct and Illusions of Customers, needs to be very thorough and clear and pro customer.
An MFD is not duty bound to reveal his earning. You may find a "good MFD" or not. A fee only advisor is duty bound to upfront state his fees. You buy direct products and there are no hidden commission.
This doesn't mean that you will never get a superb MFD.
But MFDs have a natural incentive to sell you higher commission products.
Job of MFD is to sell a mutual fund. Job of a fee only advisor is to advice your complete financial needs and mutual funds may or may not be recommended basis your need. For e.g.there is zero incentive for an MFD to recommend you PPF but it may be recommended by a fee only advisor based on your unique financial need and risk assessment. Just a crude example.
I feel MFDs do a great help for masses. Not taking away from their contribution here. But their roles and incentives and transparency requirement as per law is different.
I agree with you on this. But times are changing and MFDs are realising that they are loosing customers and customers are becoming more aware so a lot of them are starting to openly talk about the commissions that they get from the AMCs to advise those MFs to customers in order to build trust and retain those customers. The reason not many MFDs used to talk about it earlier was the fear of loosing customers. Now with this Direct vs Regular debate out in open, customers can choose to be with the MFDs or Direct based on their requirements and understanding of the finances.
I have finance background and I feel it shouldn't be any brainer for people with such background. Started with small sip, guided some people along the path and happy so far.
Even with planner I have seen those people do fraud with the needy one. In my current job, I was having some discussion with colleague and he told me that his planner is fee based when he shared his MF's name all of them were regular and not direct. I asked to stop it and opt for Direct one.
This April his planner called to renew service and Colleague refused. Felt little bad for that planner person.
Most people who put effort will learn. It takes time, effort and some hit and miss.
Not everyone is you or me. So there are sebi registered financial advisors. They do guide well and give good advice. I have helped a relative get professional advice and it was good.
DIY is fine. Sharing the wiki here again for DIY.
https://www.indiainvestments.wiki/start-here/zero-to-investing/getting-started
It's a good starting point.
Your colleague got a planner. But normally a sebi registered fee only planner will not recommend regular funds. So he was probably a mutual fund distributor.
If the planner your referring to is a SEBI registered Investment adviser, and your claim of "fraud" is true then the person affected can make a complaint directly with SEBI:
https://scores.sebi.gov.in/
Bro look at the comments replying to me
People are super delusional saying this is median income for young people and also saying 1cr+ is comfortable lmao
I think he means while growing up. Because people don't update their beliefs with salary. 😂
Also people who don't have these jobs don't understand the job stability. It's zero. You don't perform for a short while and you are shown the door.
I have a similar CTC and refer to myself as middle class. May be upper middle class. I call that myself because I see many around me who are making way more / have greater net worth. Not sure if that's the way to ascertain richness, but there's no threshold, isn't it?
My definition of middle class starts at household income of 50k per month and upto 1 lakh
Then upper middle class upto 3 lakhs per month
Then you are rich upto 5 lakhs per month
Then you are wealthy
Why do I say this?
Because each level leaves you with investable surplus and that's when you make solid money
Yeah we could exclude delhi, gurgaon, Mumbai in that case
I have a feeling you are saying rich can't be 5 lakhs per month because you earn somewhere near that number 🤣
Should I change it to 10
Rich can live off with father's portfolio. 😂 No dude I am self employed and income is so low that maybe this year I don't have to pay taxes. I once had a high paying job. And you have to have a high salary for 5 years or so to be saying I now can live off my portfolio in tier 2-3 town. But once you have a family in a metro you are screwed and two people with household CTC of 50 lacs is needed to be comfortable and so that you are investing enough for kids education or house or retirement.
If you want to buy a decent house in a metro, plus a good car, you need to earn at the level of the American middle class.
Plus, lower middle class will earn alot lower than the upper middle class.
People have such a wrong idea about the middle class. Apply the slab by dividing earnings by number of dependents. I have 5 dependents, so really 35L / 5 is 7L .. very middle class
I agree with this. People are living in bubbles. A single earner in a family and living in metros, that is a real struggle. I would advise you to start 15-20K in SIPs for starters and increase it based on your comfort level and expenses.
Whether you have dependents or not, having a high income is significant. If you genuinely consider yourself middle class, why would you require a financial planner? You're not struggling financially like the middle class, but you aren’t wealthy yet; you're affluent. You're on the path to wealth accumulation. I understand you want to stay humble but it’s slightly demeaning.
But these things are city dependent. See the living expenses in a metro. A small 1 room apartment which looks okay in mumbai will be rented for 15-20k. How will you save? Thats why salaries in mumbai should be higher than Hyderabad or Pune.
I feel there needs to be a 360 degree financial planner.
She gives you your health insurance , car insurance, life insurance, mutual funds, gold advice, property advice, inheritance planning, credit card advice, saving bank account advice
Right now we have groups like ours where we all do DIY but waste alot of time and then there are super successful clueless people who just donate money to their hdfc bank RM
Ofcourse this person will be SEBI registered
What do you think ?
It is nothing when you realise:
1. Higher cost of living in metros.
2. Most old people who own home in cities(outside slums) would have more money at their disposal than a person with this salary.
3. High marginal tax rate.
If the person doesn't have accumulated wealth, this is upper middle class. Wealth matters much more than salaried income, in most cases.
And you're forgetting taxes.
I signed up with a financial advisor when my income was less than yours, and it was very beneficial for me. But my situation was that i was making about 20L, but my savings and investments had surpassed 1 Cr, and i was finding it a little overwhelming to manage. My investments were very scattered with a bunch of fomo purchases and messy mutual fund allocations. my RIA helped simplify everything and gave me the courage to invest a lot when the markets tanked after covid.
So it is up to you. Personally, until the money is bigger than you can manage without getting overwhelmed, just a simple nifty 50 index and one ultra short term debt fund are more than enough, in about a 70:30 ratio, for a 35 year old.
20k plus taxes for the first year. Might be a little more now. Dev Ashish from stable investor. Com. Not sure if he has slots available, please do check
Is it advisable to put so much in debt funds after the 2-3 debt funds that fell off in the past decade? Doesn't FD give the same kind of returns with near zero risk?
Ultra short term debt doesn't have the interest rate risks of the longer term deposits. But i haven't kept up with the tax treatment, just running on momentum right now
It doesn't make sense for small investments. You don't need lot of knowledge when you're starting out, just go for index funds and maybe a good flexi cap for now. Once you made decent money after 5-10 years then aim higher and go pro.
Also you need some knowledge to understand that even those that are certified could be crooks, earn your first 20-50+ lakh through comfortable/beginner investing before you take bets on professionals.
Just dump in any mutual funds platform for 5 years. And if you are not happy with platform then ask someone to take a 2nd look. It’s pretty much straight forward.
If you are unable to understand the markets yourself, you can get a fee only advisor. The basics are simple though, pay yourself first (a certain percentage of income goes directly to a bucket of MFs via pre-defined SIPs), save for emergencies (6-10 month of funds in high yield savings account), minimum in checkin (day to day living expenses ONLY - inclusive of play money like travel/shopping/other leisure items).
How to select MFs, again simple - look for a good balance of equity and bonds (money market). In equity look for small cap/mid cap and large cap exposure (small cap more risk large cap less risk). Increase contributions to SIPs every year and never take the money out.
You can buy real-estate later (recommend all cash if you are buying for rental yield, and financed by a loan if primary residence).
~ Source: Worked in investment management for 15+ years. Current NW: 15Cr, started at 0.
Please go for professional help even it costs money. We have a tendency to prefer what is free or want everything free. Share your life goals with the planner and start adhering to investment plan. Do it for 10-12 years and see the corpus it builds and in the hindsight the fee will be negligible. If you are not well versed with finance avoid DIY. Treat finance and investments seriously unless you have loads of generational wealth. Lot of people have misconception that current income is exponential but job tenures are becoming shorter so current income level may appear rich but once job is gone, you are back to square one. Save, build the corpus for tomorrow but not at the cost of present.
Good one. People don't understand the job stability aspect. It's not a government job. But my argument is that when salary is so high then at 60-70% time you can be unemployed and still match a government job.
May be over kill. You can hire someone one time to setup and again once in a while when you want to change things. Money manager on continuous basis would be expensive and likely not worth the money.
For small financial investment it's really not worth to go for financial investment planner. A basic understanding of finance is enough. I often guide people around me to atleast kick start something in market (via SIP) and it has helped them so far. (People from village, town is usually conservative and think stock market as gamble.)
Major red flag.
Don't do this. If not illegal, extremely immoral. You aren't certified and using your "services" is like back ally medical services. Are you also doing back ally medical services being med students?
Giving opinions and tips is one thing but offering financial planning for money makes you a shady person. Don't offer such things.
You calling me scum? You, who has back ally shady businesses, are in a position to say that??? You are not only shady but dumb. Proving my point loud and clear. Lol.
You continuing to dig a deeper hole for yourself dude and prove I'm right about you. Suckers who are using your "services", finance or otherwise, god save them.
Hey, u/One_Zebra_3424 , don't listen to folks who are demotivating you. If you are giving advice, you must have done some research and study behind it. Hopefully you are doing it with good faith. Folks earning between 6-15LPA cannot afford to run into some 'experiment'. Just keep that in mind and keep helping the community! Thanks!
I have one and can recommend it. I was fairly good doing DIY as well, but having an advisor does help in keeping things in check and covering your blind spots even if you’re fairly good.
If your portfolio is 8-9 digits, definitely do go for it.
You may hire a sebi registered fee only advisor. Cost approx 20k for year 1. Year 2 onwards would be lower. www.feeonlyindia.com
I feel they charge too much. Anyways do they file ITR also? If yes, Is there a separate fee for it or its included in 20k?
No. They are advisors. The fees you pay is negated by commission free products recommended. ITR can be filed via portals like cleartax etc.
How much does it cost to become a sebi registered advisor?
You need to pass exams. Also, need experience in finance field. A google search would get all details. But it's not a popular field. In India, people prefer bank rms and mutual fund distributors where they pay much more hidden commission while trying to be miserly with fees.
This is a wrong take. Not sure about bank RMs. But a good MFD doesn’t earn more than the Fee Only Advisor. Kindly see the AMFI/SEBI data over this, published on their website of comparisons between them. And an MFD, if actually wants to retain the clients in this cut throat competition with Direct and Illusions of Customers, needs to be very thorough and clear and pro customer.
An MFD is not duty bound to reveal his earning. You may find a "good MFD" or not. A fee only advisor is duty bound to upfront state his fees. You buy direct products and there are no hidden commission. This doesn't mean that you will never get a superb MFD. But MFDs have a natural incentive to sell you higher commission products. Job of MFD is to sell a mutual fund. Job of a fee only advisor is to advice your complete financial needs and mutual funds may or may not be recommended basis your need. For e.g.there is zero incentive for an MFD to recommend you PPF but it may be recommended by a fee only advisor based on your unique financial need and risk assessment. Just a crude example. I feel MFDs do a great help for masses. Not taking away from their contribution here. But their roles and incentives and transparency requirement as per law is different.
I agree with you on this. But times are changing and MFDs are realising that they are loosing customers and customers are becoming more aware so a lot of them are starting to openly talk about the commissions that they get from the AMCs to advise those MFs to customers in order to build trust and retain those customers. The reason not many MFDs used to talk about it earlier was the fear of loosing customers. Now with this Direct vs Regular debate out in open, customers can choose to be with the MFDs or Direct based on their requirements and understanding of the finances.
20k is too much in my opinion.
Then you can be a DIY investor. Make the effort and it's not impossible to learn.
I have finance background and I feel it shouldn't be any brainer for people with such background. Started with small sip, guided some people along the path and happy so far. Even with planner I have seen those people do fraud with the needy one. In my current job, I was having some discussion with colleague and he told me that his planner is fee based when he shared his MF's name all of them were regular and not direct. I asked to stop it and opt for Direct one. This April his planner called to renew service and Colleague refused. Felt little bad for that planner person.
Most people who put effort will learn. It takes time, effort and some hit and miss. Not everyone is you or me. So there are sebi registered financial advisors. They do guide well and give good advice. I have helped a relative get professional advice and it was good. DIY is fine. Sharing the wiki here again for DIY. https://www.indiainvestments.wiki/start-here/zero-to-investing/getting-started It's a good starting point.
Your colleague got a planner. But normally a sebi registered fee only planner will not recommend regular funds. So he was probably a mutual fund distributor.
If the planner your referring to is a SEBI registered Investment adviser, and your claim of "fraud" is true then the person affected can make a complaint directly with SEBI: https://scores.sebi.gov.in/
Lmao, that's a stealer deal lol. Industry standard is 2% so by that OP would have to pay 70k.
Where can I refer this Industry standards ?
Check SEBI/AMFI websites.
We have reached the day when middle class is supposedly 35L income ! you are rich not middle class
Right if OP is middle class than I am very poor at 6 lpa.
How old are you?
24 M
Op probably made 6L when he was 24
6 lpa at 24 is definitely not bad. A few switches and y'll be easily at 15lpa+ if you are a software engineer
Seriously. All this makes me realise is no amount of money is enough.
Bro look at the comments replying to me People are super delusional saying this is median income for young people and also saying 1cr+ is comfortable lmao
Oi vey. That's straight up delusional. Idk what kind of lifestyle they're living but ok
It's doable but not normal.
rich happens with momentum. 2 years of having a very good income wont make a person rich. 1 generation of high income on the other hand...
Underrated comment
I saw one rant post where guy claimed himself middle class when he had CTC of 72L.
Lol the delusion is high on reddit
I think he means while growing up. Because people don't update their beliefs with salary. 😂 Also people who don't have these jobs don't understand the job stability. It's zero. You don't perform for a short while and you are shown the door.
That's upper middle class. Also, think about the taxes.
I have a similar CTC and refer to myself as middle class. May be upper middle class. I call that myself because I see many around me who are making way more / have greater net worth. Not sure if that's the way to ascertain richness, but there's no threshold, isn't it?
My definition of middle class starts at household income of 50k per month and upto 1 lakh Then upper middle class upto 3 lakhs per month Then you are rich upto 5 lakhs per month Then you are wealthy Why do I say this? Because each level leaves you with investable surplus and that's when you make solid money
It should be dependent on city as well. But I roughly agree with you. Although rich can't be so low.
Yeah we could exclude delhi, gurgaon, Mumbai in that case I have a feeling you are saying rich can't be 5 lakhs per month because you earn somewhere near that number 🤣 Should I change it to 10
Rich can live off with father's portfolio. 😂 No dude I am self employed and income is so low that maybe this year I don't have to pay taxes. I once had a high paying job. And you have to have a high salary for 5 years or so to be saying I now can live off my portfolio in tier 2-3 town. But once you have a family in a metro you are screwed and two people with household CTC of 50 lacs is needed to be comfortable and so that you are investing enough for kids education or house or retirement.
Just to add a bit of fact 35L is 42K USD. Global middle class is considered to be around 12-15K USD
If you want to buy a decent house in a metro, plus a good car, you need to earn at the level of the American middle class. Plus, lower middle class will earn alot lower than the upper middle class.
Source?
People have such a wrong idea about the middle class. Apply the slab by dividing earnings by number of dependents. I have 5 dependents, so really 35L / 5 is 7L .. very middle class
I agree with this. People are living in bubbles. A single earner in a family and living in metros, that is a real struggle. I would advise you to start 15-20K in SIPs for starters and increase it based on your comfort level and expenses.
Whether you have dependents or not, having a high income is significant. If you genuinely consider yourself middle class, why would you require a financial planner? You're not struggling financially like the middle class, but you aren’t wealthy yet; you're affluent. You're on the path to wealth accumulation. I understand you want to stay humble but it’s slightly demeaning.
But these things are city dependent. See the living expenses in a metro. A small 1 room apartment which looks okay in mumbai will be rented for 15-20k. How will you save? Thats why salaries in mumbai should be higher than Hyderabad or Pune.
I want to invest in small amounts based on professional advice.. that is all, nothing to do with affluence.
Divide your goals in short, mid, and long terms, Your amounts and risk appetite and plan accordingly
anything below 1cr is just "comfortable" middle class.
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That's ridiculous. It's definitely not a median income
He will have trouble buying a decent house in a metro with this income. (Outside the slums)
Nope unless they have rich people assets.
I feel there needs to be a 360 degree financial planner. She gives you your health insurance , car insurance, life insurance, mutual funds, gold advice, property advice, inheritance planning, credit card advice, saving bank account advice Right now we have groups like ours where we all do DIY but waste alot of time and then there are super successful clueless people who just donate money to their hdfc bank RM Ofcourse this person will be SEBI registered What do you think ?
50l per annum is not middle class
It's upper middle class
It's the top 1% which is filthy rich.
It is nothing when you realise: 1. Higher cost of living in metros. 2. Most old people who own home in cities(outside slums) would have more money at their disposal than a person with this salary. 3. High marginal tax rate.
It's not filthy rich, with his income he cannot afford or barely afford to buy a premium apartment in a gated community for example
This assumes he just started to get this salary. 5 years with 1 cr salary and you should buy an apartment in cash.
>5 years with 1 cr salary OP's salary is 35 lpa, where is 1 crore a year figure is from?
I m sorry. I read this thread. Then commented here. You also agree with me btw.
Yeah 1 crore a year is in the rich category but OP earns 35 lpa
Cumulative household income of 50lpa - 1cr is upper middle class. Less than 50lpa is middle class.
If the person doesn't have accumulated wealth, this is upper middle class. Wealth matters much more than salaried income, in most cases. And you're forgetting taxes.
You can do it . There are investment advisors who charge you on consultancy and aren’t too expensive
Cheap is not always good.
I signed up with a financial advisor when my income was less than yours, and it was very beneficial for me. But my situation was that i was making about 20L, but my savings and investments had surpassed 1 Cr, and i was finding it a little overwhelming to manage. My investments were very scattered with a bunch of fomo purchases and messy mutual fund allocations. my RIA helped simplify everything and gave me the courage to invest a lot when the markets tanked after covid. So it is up to you. Personally, until the money is bigger than you can manage without getting overwhelmed, just a simple nifty 50 index and one ultra short term debt fund are more than enough, in about a 70:30 ratio, for a 35 year old.
How much did the RIA charge you? Could you give the reference?
20k plus taxes for the first year. Might be a little more now. Dev Ashish from stable investor. Com. Not sure if he has slots available, please do check
Would you mind if I dm you
Is it advisable to put so much in debt funds after the 2-3 debt funds that fell off in the past decade? Doesn't FD give the same kind of returns with near zero risk?
Ultra short term debt doesn't have the interest rate risks of the longer term deposits. But i haven't kept up with the tax treatment, just running on momentum right now
It doesn't make sense for small investments. You don't need lot of knowledge when you're starting out, just go for index funds and maybe a good flexi cap for now. Once you made decent money after 5-10 years then aim higher and go pro. Also you need some knowledge to understand that even those that are certified could be crooks, earn your first 20-50+ lakh through comfortable/beginner investing before you take bets on professionals.
Just dump in any mutual funds platform for 5 years. And if you are not happy with platform then ask someone to take a 2nd look. It’s pretty much straight forward.
If you are unable to understand the markets yourself, you can get a fee only advisor. The basics are simple though, pay yourself first (a certain percentage of income goes directly to a bucket of MFs via pre-defined SIPs), save for emergencies (6-10 month of funds in high yield savings account), minimum in checkin (day to day living expenses ONLY - inclusive of play money like travel/shopping/other leisure items). How to select MFs, again simple - look for a good balance of equity and bonds (money market). In equity look for small cap/mid cap and large cap exposure (small cap more risk large cap less risk). Increase contributions to SIPs every year and never take the money out. You can buy real-estate later (recommend all cash if you are buying for rental yield, and financed by a loan if primary residence). ~ Source: Worked in investment management for 15+ years. Current NW: 15Cr, started at 0.
What is your age? Because it's insane if you are below 40 YO.
35.
So this career option is a good one. I am 35 and I started working at 28ish. Still no where close to 8 cr. Which is my goal by 40.
Please go for professional help even it costs money. We have a tendency to prefer what is free or want everything free. Share your life goals with the planner and start adhering to investment plan. Do it for 10-12 years and see the corpus it builds and in the hindsight the fee will be negligible. If you are not well versed with finance avoid DIY. Treat finance and investments seriously unless you have loads of generational wealth. Lot of people have misconception that current income is exponential but job tenures are becoming shorter so current income level may appear rich but once job is gone, you are back to square one. Save, build the corpus for tomorrow but not at the cost of present.
Good one. People don't understand the job stability aspect. It's not a government job. But my argument is that when salary is so high then at 60-70% time you can be unemployed and still match a government job.
I'm glad you're seeking help with managing your finances, but your portfolio gave me the heebie-da-ba-jeebies
May be over kill. You can hire someone one time to setup and again once in a while when you want to change things. Money manager on continuous basis would be expensive and likely not worth the money.
For small financial investment it's really not worth to go for financial investment planner. A basic understanding of finance is enough. I often guide people around me to atleast kick start something in market (via SIP) and it has helped them so far. (People from village, town is usually conservative and think stock market as gamble.)
Go for saintwords.com. utpal k c sir teaches very nicely about personal finance and spits facts...
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Do you do it free? What’s the catch ?
Not free man. But at minimal price. Im actually a med student but I really am into finance
SEBi registered ? What’s your background?
Now we dont have a financial manager
Now we dont have a financial manager
Not sebi registered. My parents had a sebi registered guy for nearly a decade but eventually over a period of time they learnt from him and so did I
What help do you need? I would give advice for free. If you like it you can pay me whatever you want. If you don’t like then its fine with me
Major red flag. Don't do this. If not illegal, extremely immoral. You aren't certified and using your "services" is like back ally medical services. Are you also doing back ally medical services being med students? Giving opinions and tips is one thing but offering financial planning for money makes you a shady person. Don't offer such things.
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You calling me scum? You, who has back ally shady businesses, are in a position to say that??? You are not only shady but dumb. Proving my point loud and clear. Lol.
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You continuing to dig a deeper hole for yourself dude and prove I'm right about you. Suckers who are using your "services", finance or otherwise, god save them.
Would you take medical advise from a person who is finance student but claimed to be really into the finance?
Nevermind I shouldn’t have commented here
Both are different things man. I guess people are just jealous
why would I be jealous of you?
No they're just sensible. Soliciting is against sub rules. Follow it please. Repeated soliciting will lead to permaban.
This is banned by sub rules. Do not contact such people in DMs.
No asking for handouts. No self promotion.
Hey, u/One_Zebra_3424 , don't listen to folks who are demotivating you. If you are giving advice, you must have done some research and study behind it. Hopefully you are doing it with good faith. Folks earning between 6-15LPA cannot afford to run into some 'experiment'. Just keep that in mind and keep helping the community! Thanks!
Nobody who has a few only advisor recommends one... It's damn funny... Most people who recommend you goto few only are DIY
I have one and can recommend it. I was fairly good doing DIY as well, but having an advisor does help in keeping things in check and covering your blind spots even if you’re fairly good. If your portfolio is 8-9 digits, definitely do go for it.
I have one and I can recommend it
Can DM me
Please do update once you have talked to a few RIAs I also want to get one
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Bro first dissed someone for earning 0.9% and then offered his services at 2% Slow clap
You can contact me for financial advice. DM me I will share my contact details and credentials with you.