Fee based models are now increasingly becoming a hot topic of discussion among IFAs. Not just the RIAs but even non RIAs are seriously looking at fee models.
Why this trend?
- Clients showing growing acceptance towards fee charging
- Gradual shift from distribution to advisory services requires advisors to spend more time on quality work thus commanding a fee
- SEBI increasingly focusing on fee based models
Moreover, clients and prospects are gradually becoming aware about direct plans. In such case, if you have a fee based system in place, you can then offer direct plans too and charge a fee.
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We’ve been watching this space closely and strongly believe that fee based model will have to be looked upon by financial advisors as a serious offering. Now, there aren’t too many options when it comes to calculating fees and collecting the same. Couple of ones that are currently there charge a bomb and require you to shed your identity by becoming their sub brokers.
We believe this HAD to be solved. We’ve spent last few months building a comprehensive advisory fee billing system. We’ve kept in mind the Indian context while building this out.
Here are some of the key features:
- Complete flexibility to add your own fee models
- You decide the fee amounts and charging frequency too. Want to charge a monthly fee? We’ve got you covered
- Charge AUM linked fee or fixed fee. We take care of average AUM calculation
- We take care of auto debiting the fee from your client’s accounts too, thus reducing friction
- Slab based charging. Create your own slabs
- Option to charge different fees for regular and direct plans
- Not just MF, you can add multiple asset classes like stocks, FD, insurance products etc.
- Further customization of fees at a client level
- Once you decide to go ahead, we send you a tripartite agreement that you need to sign with your clients. We send you a debit mandate that you need to get signed from the client.
- Once done, you decide the fee structure you want to charge at a client level. The invoices are automatically created for you.
- You then intimate us to debit the client’s account. We in turn send an auto debit notification to your client.
- Next working day, the fees are debited.
- We then payout the fees back to you.
Important: Please note that you should have an RIA license in place if you want to use this feature.
Questions? Call us on 022 2895 4777 or email @ email@example.com