At FinClin Investment Advisors – (Erstwhile Fauji Consultant), we understand the need of proper financial planning especially for our country’s armed forces. Our cofounder, Col. Sunil Midha (Retd) understands the fact that being a defence personnel involves long durations of time away from family or frequent moves from one place to another and thus a proper financial plan can help them to feel financially comfortable in stressful life.
Selecting a Financial Planner is a very important financial decision. Thus a SEBI Registered Investment Advisor is someone who:
Understands fiduciary responsibility of working in your interest
- Has no connection with broker-dealer or investment group
- Is Bound to adhere with the Code of Conduct of SEBI
- Provides transparent reporting and advisory as per written agreement
- Does not churn the portfolio frequently
- Manages downside risks as per risk profiling of the client
How are we different from Mutual Fund Distributors and Why do we suggest Direct Plans?
- A Mutual Fund Distributor receives commissions from fund houses and/insurers etc. for the products he/she recommends. Thus there is always a possibility of conflict of interest. Whereas we (team of RIA – Kushal Bhateja – INA 100010305) are a Fee Only Planner and charge a fee for financial plan creation and advisory and do not receive any kind of commissions/incentives from mutual fund houses, insurers or other financial product sellers.
- Why do we recommend Direct Plans? As direct plans do not involve third party compensations and hence reduce the expense cost leading to Higher returns for our clients. This will be clear with the table below
DIRECT PLAN- SAVINGS & HIGHER RETURNS ILLUSTRATION
Illustration- Direct Plan Excess Return: Save Broker Commissions and Earn Higher Returns.
E.g. Axis Bluechip Fund:
| Regular Plan Expense Ratio (%) | 1.7 |
|---|---|
| Direct Plan Expense Ratio (%) | 0.63 |
| Direct Plan Saving (%)= (1.70% - 0.63%) | 1.07 |
| Scheme Name | Plan | 2022 Return | 2021 Return | 2020 Return | 2019 Return | 2018 Return |
|---|---|---|---|---|---|---|
| Axis Bluechip Fund - Direct Plan | Direct Plan | -4.62% | 20.82% | 21.06% | 20.47% | 8.98% |
| Axis Bluechip Fund (Regular i.e. Broker Plan) | Regular Plan | -5.66% | 19.39% | 19.58% | 19.12% | 7.43% |
| Excess Return (Direct – Regular Plan) (source: moneycontrol.com) | 1.04% | 1.43% | 1.48% | 1.35% | 1.55% |
Returns mentioned in the above illustration are all absolute returns (%).
Disclaimer:
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The material herein is provided for informational purposes only and should not be construed as financial or investment advice or recommendation to buy/sell mutual funds.
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Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
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Past Performance is not indicative of future results.
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Registration Granted by SEBI (RIA- INA100010305)
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Membership ID of BASL – BASL1646
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Mutual Fund Investments are subject to market risk, read all scheme related documents carefully before investing.
