Top SEBI-Registered Investment Advisors in India & Their Fees Explained

Imagine a person losing all his savings to an individual who claimed to be a financial advisor. He assured him of “guaranteed returns” and even showed fake documents to gain his confidence. Sadly, he isn’t alone. Across India, many investors become victims of these impostors pretending to be advisors.

But finding the right advisor isn’t as hard as it seems. SEBI, the market regulator of India, officially registers qualified professionals and firms as Investment Advisors (RIAs). These registered investment advisors are bound by strict rules, work in your best interest, and reveal precisely how they get paid.

So, how do you find the best SEBI-registered investment advisor, and how do they charge? Let us understand.

Who is a SEBI Investment Advisor (RIA) and What are their Fee Structures? 

A SEBI investment advisor or RIA is an individual or firm registered with SEBI to offer personalised investment advice on securities to clients for a fee.

Here, investment advice includes advice on buying, selling, and holding securities, managing portfolios, and financial planning. But RIAs cannot distribute mutual funds unless separated from advisory activities.

All RIAs are legally required to sign a formal contract with the client prior to providing advice or charging a fee. Such an agreement should clearly show the terms and conditions, fee arrangement, scope of services, disclosures of risk, etc.

Let’s now explore the structure of SEBI-registered investment advisor fees.

Fee Structure 

SEBI allows two types of fee structures for clients:

Based on Assets Under Advice (AUA)

In this model, the RIAs charge a percentage of the total investments they advise on. The maximum fee allowed is 2.5% of AUA per year per client. 

Say, if your investments are worth ₹50 lakh and the RIA charges 1%, you’ll pay ₹50,000 per year.

Fixed Fees

In this mode – the advisor charges a flat fee regardless of your investment size. The fees should not exceed ₹1.25 lakh per year per client.

Note that SEBI does not allow RIAs to mix both models for the same client.

How to Identify a Top SEBI-Registered Investment Advisor?

Choosing a top SEBI-registered investment advisor goes beyond just checking the name. Here’s what to look for:

1. Check if they have a Valid SEBI Registration Number

Every registered investment advisor must display their valid SEBI registration number (starting with INA…) on their website, marketing materials, and advisory agreements. You can verify this on the SEBI website.

But just spotting an RIA’s name on SEBI’s website isn’t enough. Always cross-check their phone number and email with what’s listed on their official website. Better yet, drop them an email or call them directly to make sure you’re speaking to the real, registered advisor.

2. Evaluate Experience and Qualifications 

Take some time to look for the RIA’s qualifications and background. A genuine professional will have the right certifications and a good track record. Don’t mind asking them for their credentials or even their past clients’ experiences. It is a good way to know how reliable and experienced they really are.

3. Understand the Scope of Advice

An investment advisor can advise on stocks, mutual funds, bonds, asset allocation, retirement planning, goal-based strategies and much more. But they cannot sell mutual funds and earn a commission unless a separate entity conducts these activities.

That’s why it is important to understand the scope of advice, outlining what aspects are covered and what are not before selecting a SEBI investment advisor. 

4. Know the Fee Model 

Make sure the investment advisors are completely transparent and upfront about their fees. They should provide a clear fee structure in writing before you sign up. Ask detailed questions about:

• How and when fees are collected
• Any additional charges
• What services are included

5. Consider Digital Tools and Accessibility 

Many RIAs offer technology platforms that help you track your investments, provide regular reports, and make it easy to communicate with your advisor. Check if they provide:

• A user-friendly dashboard 
• Regular portfolio updates 
• Easy access to your advisor through multiple channels

6. Compare 2-3 Advisory Firms Before Deciding

Don’t rush your decision. Meet with several RIAs to compare their approaches, expertise, and how comfortable you feel working with them. The right advisor relationship often lasts for years or decades.

Top SEBI-Registered Investment Advisors in India

Some of the top SEBI-registered investment advisors in India are: 

• Mitraz Financial Services Pvt Ltd (doing business as Scripbox Private Wealth)
• ICICI Investment Management Company Limited 
• Kotak Alternate Asset Managers Limited
• Bajaj Capital Investment Advisers Private Ltd

Conclusion 

Don’t fall for fake financial advisors promising “guaranteed returns.” Always choose a SEBI-registered investment advisor (RIA). They are regulated, transparent, and legally bound to act in your best interest.

Before choosing a registered investment advisor, check the SEBI registration number, understand the fee model, ask for qualifications and experience, clarify what services are included, and compare a few advisors.

After all, it’s about your money and wealth! 

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