OMNIMax is fast becoming the number one choice in financial planning and wealth management solutions across India. OMNIMax has been working alongside the Indian financial planning community for over three years making sure that the software is hitting the mark.
A new paradigm? Fee-based Financial Advice
The scrapping of entry load might prompt traditional distributors of mutual funds to consider offering fee-based financial planning – a service that was available nearly free till recently. Entry load is an amount deducted by mutual funds from the investor’s subscription for making payment to distributors and for other marketing expenses. It usually ranges between 2 and 2.25 per cent.
Fee based advice will have to demonstrate the “value add”.
Fee-based financial planning services are still at a nascent stage in the country. According to industry experts, the removal of entry load by the Securities and Exchange Board of India may bring about a shift in distribution from plain-vanilla products to a holistic financial planning model. Investors might prefer seeking advice and portfolio services if backed by strong independent research, so distributors now will be looking at customized financial planning based on the client’s profile – factoring in age, income, number of dependents and risk profile.
Objectivity and transparency the key! [More]