 "Two of the largecap-oriented mutual fund (MF) offerings — flexicap and largecap funds — witnessed a spike in investor interest in October amid a fall in the equity market.")
The Securities and Exchange Board of India (Sebi) recently introduced significant changes to the norms governing registered investment advisors (RIAs). These changes come at a time when the number of RIAs in India has dwindled to below 1,000.
“Sebi has eased the norms to encourage more people to become RIAs,” says Avinash Luthria, Sebi-registered investment advisor and founder, Fiduciaries.
Why you need an advisor
Retail investors often lack the expertise to handle the complexities of personal finance. “A financial planner can offer advice on all aspects, including investment, insurance, estate planning, portfolio construction, and goal setting,” says Arnav Pandya, founder, Moneyeduschool.
Biases cloud investment decisions, particularly during market highs. “In a bull market, investors fall prey to overconfidence bias. A financial planner can help by moderating expectations,” says Vishal Dhawan, chief financial planner, Plan Ahead Wealth Advisors.
Also Read
 "ipo market listing share market")
 "IPO")
 "Sebi likely to tighten norms for SME listing, widen UPSI definition")
 "Religare")
 "SEBI")
To younger investors, who have not experienced multiple market cycles, an advisor can provide guidance during turbulent periods.
“In dual-income households, advisors often help partners align their financial goals,” says Dhawan.
They also ensure balanced asset allocation, avoiding extremes in equities or other asset classes. Retirement planning is another critical area where advisors add value. “Engaging with an experienced advisor can help arrive at a high-quality calculation of how much corpus is needed,” says Luthria.
Financial advisors also assist in selecting cost-effective and tax-efficient products. “If you have an advisor, you can also check with them if a recently launched product is relevant for you,” says Luthria.
Hire early
Whether or not to consult an advisor should not depend on portfolio size. “Seek an advisor if you need advice on various aspects of personal finance. Even young couples may struggle with questions like whether to use money to pay off a loan or to invest it, whether to buy or rent a house, and so on,” says Dhawan. Luthria recommends that any household able to afford Rs 12,000–15,000, the typical starting fee for RIAs, should consider engaging one. Pandya adds that early guidance from an advisor can set individuals on the right financial path from the outset.
How much do they charge?
Sebi regulates fees charged by RIAs, capping them at Rs 1.25 lakh annually under the fixed-fee model and 2.5 per cent of assets under management for the asset-based model (GST is extra). In practice, fixed fees range from Rs 12,000 to Rs 1.25 lakh, with most advisors charging well below the upper limit. Asset-based fees typically hover around 1 per cent.
Choosing the right advisor
Sebi’s website lists around 944 RIAs, but not all may be active or offer financial planning services. Verification of credentials, especially whether they have passed the National Institute of Securities Markets (NISM) investment advisor certification, is essential. Next, check qualifications on LinkedIn: a degree such as an MBA, Certified Financial Planner (CFP), or Chartered Financial Analyst (CFA) signals competence.
Experience plays a crucial role. “Go for an advisor who has been through multiple market cycles and gathered useful experience. The fact that a person has survived as an advisor for long also indicates competence,” says Dhawan.
References from existing clients and initial discussions with multiple advisors can provide valuable insights. “Find out how they work and whether you will be able to trust them and be comfortable working with them over the long term,” says Pandya.
An RIA should be able to address multiple areas like investment, insurance, estate planning, and so on.
 "US Visa")
 "tech")
 "UPI")
 "Fixed Deposit, FD")
 "susakhan")
