Fee-Only  vs  Fee-Based Financial Advisors

Financial Advisors

Both fee-only and fee-based advisors facilitate wealth management - what separates them is the way they work with you - namely, how they take their remuneration.


Fee-only advisors earn their income by taking a flat fee from you, the client, on an hourly or per-project basis.

They don’t hand out financial products that could earn them more.

Fee-Only: Flat Fee

Flat-fee advisors charge anywhere from Rs 5,000-50,000 (or even more) in the first year. 

It is usually higher for NRIs. Fees for follow-up years are lower.

Fee-Only:  Asset-Based Fees

Here, the advisor will charge fees based on a percentage of your assets, perhaps 1%-2%.

Fee-Only: Performance-Based

They have a 2-tiered structure. A base fee linked to your assets, and a share of profits over and above that if portfolio returns exceed a certain percentage. 


They may not charge a fee, but earn income from commissions when you invest through them. 

They have licenses that allow them to distribute investment products & insurance for a commission. 

Which One Should You Pick?

Check your advisor’s credentials, ensure the fee structure is transparent, understand what services you are getting - and choose an advisor who aligns with your pocket & goals!

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.