Network FP Thinktank is an Online Professional Journal by Network FP wherein we share the articles written by top-class financial advisors and industry thought leaders from across India and the world.
Network FP’s Response to SEBI’s Consultation Paper on RIA
Sadique Neelgund
October 27, 2016
Reading Time: 8 minutes Network FP on behalf of its members has sent a response to SEBI on it’s Consultation Paper on Amendments / Clarification to the SEBI (Investment Advisers) Regulations 2013. The inputs for this response were given by NFP ProMembers and NFP Advisory Board. The draft of this response has been reviewed & approved by majority of the Network FP Members who comprise of CFPs, RIAs & IFAs.
Read MoreImportant Factors for Bonds Evaluation
Kishorkumar Balpalli
Founder & CEO myMoneySage an award-winning Fin-Tech startup
October 25, 2016
Reading Time: 6 minutes While investing in bonds, advisors may have given coupon rates an in-depth thought. But apart from that, there are other critical factors that should be taken care of. Advisors need to compare the bonds by price because it ultimately helps in assessing the bond yields. Needless to explain that prices are affected by the fluctuating interest rate regime thereby influencing the yields. Then, duration becomes another significant concern wherein you analyse the bond by the years taken by it to repay the purchase price.
Read MoreHow IFAs can Face Commission Disclosure – Communication is the Key
Sadique Neelgund
September 28, 2016
Reading Time: 4 minutes SEBI has made it clear that commissions of distributors will be disclosed in investors’ CAS (Common Account Statement) from October 1st onwards in absolute numbers. Although I think this could have been well avoided by regulator, I do not want to get into critical review of same. NFP Members had a very good discussion on this last week and I am writing this based on some of the learnings from that healthy discussion.
Read MoreFinancial Advisor – The Vital cog
Sadique Neelgund
Reading Time: 2 minutes Fees or No Fees, Regular or Direct, Online or Offline, Human or Robo, and so on. No matter how much the technology evolves and the regulations go through changes, financial advisors have remained vital through all of it and will continue to remain so. Dharamendra Satapathy, Director, Next Level who also conducts many IAP Programs and workshops for financial advisors across India shares his thoughts on the role of financial advisors in the ever-changing technology & regulatory environment for financial advisors.
Read MoreWhy and How MF Advisors Can Charge Fees to Clients
Sadique Neelgund
September 23, 2016
Reading Time: 4 minutes There is a lot of confusion around this matter amongst the financial advisory fraternity. After the SEBI Investment Advisor Regulations, 2013 came into effect, many of the Mutual Fund advisors came to a conclusion that only RIAs can charge fees and not MF Advisors. Please make note of the word advisor used not the word distributor. MF Advisors are the ones who are adding value beyond pure transaction facilitation. This article is more relevant for the MF advisors who are creating real value to their clients by exhibiting professionalism.
Read MoreAsset Allocation – The holy grail of Investment Management
Sadique Neelgund
September 21, 2016
Reading Time: 2 minutes Asset Allocation is considered to be the Holy Grail in the Investment Management Process, which is a primary determinant of the Portfolio Objective/Success. That being said, it is also one of the most overlooked phenomena. Risk Tolerance, Return Objectives, Financial Goals, Time Horizon, Asset Valuations etc. are factors that go in towards building an appropriate […]
Read MoreRegulator wants the distributor to become an advisor
Ronak Hindocha
Entrepreneur
September 19, 2016
Reading Time: 3 minutes A lot has been written about the flurry of regulatory changes the MF industry has witnessed of late. It all started back in 2009 when I joined the industry. SEBI did the unthinkable back then. Later, it was the introduction of direct plans, RIA regulations, emergence of Robo-advisors (some will make it big and quite a few are bound to shut down) to name a few. There has been a lot of hue and cry, of course. But if you look back now; it all feels like connecting the dots. While some dots are yet to be connected, read – reduction of TER, which is imminent. The picture is clear. Regulator wants the distributor to become an advisor. Regulator wants you to stop focusing on commission and start focusing on fees. Here are some of my predictions on the IFA Industry
Read MoreMinimum Ideal Practice of a Financial Advisor
Sadique Neelgund
September 12, 2016
Reading Time: 4 minutes We come across many Financial Advisors who seem to be constantly in search of and in pursuit of an ideal practice. For an Independent Advisor, there is no end to aspiration and no end to perfection. This may lead to unrest and impacts quality of life. An advisor should first strive hard to reach a minimum ideal practice and then on try to grow constantly but with a proper work-life balance.
Read MoreRIAs will have access to MF Direct Plan feeds
Sadique Neelgund
September 7, 2016
Reading Time: 2 minutes Suresh as a SEBI RIA recommending Direct Plans took the initiative to write to CEOs of 17 MFs, AMFI, Karvy & SEBI with regards to issues faced by RIAs in getting the information of clients’ investments in MF Direct Plans. Here is an update from his interactions w.r.t Direct Plans feeds and issues.
Read MoreDifferent strokes for different folks!
Suresh Sadagopan
CEO, Ladder7 Wealth Planners Pvt. Ltd.
August 31, 2016
Reading Time: 3 minutes Suresh Sadagopan CFP is the founder of Ladder7 Financial Advisories, which is a Fee based Financial planning firm since 2004. Suresh Sadagopan was on the board of directors at FPSB India between 2013-15, the certifying body for CFP Certification in India. He is also the Founder President of The Financial Planners’ Guild, India, a premier organisation for practising financial planners formed to spread financial planning awareness as well as assist members to be some of the best in business.
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