Disclosing conflict of interest builds trust

I explained the conflict: if Sukanya sold real estate and invested in financial products, our fee, a percentage of assets under advice (excluding real estate), would rise

Our client, Sukanya, holds a Chief Executive Officer (CEO) position in a large firm. She requested a review meeting with us. Sukanya resides in an apartment she owns. She has an impressive net worth with investments in mutual funds, a substantial sum in her Employee Provident Fund account, and an additional apartment valued at a few crore. As her children’s educational goals were approaching, she was contemplating selling the investment property to partly meet those goals.
 

The investment property constituted approximately 40 per cent of her investment portfolio. Selling it would result in a significant shift in her asset allocation.