Expertise you need, Honesty you deserve!
Frequently Asked Questions
Here you can find answers to frequently asked questions.
We are here to answer.
Why SahajMoney for Investment Advice ?
SahajMoney™, a venture by IIM Bangalore Alumni, provides unbiased financial planning to you for a flat fee so that our interest is aligned with you.
Our mantra is “Investment Simplified”.
How long SahajMoney has been in existence ?
Can you share some colour on your client base ?
Due to our commission free, unbiased and personalized service we attract clients from all walks of life.
As a matter of fact we have a client base which is present in all continents barring Antartica.
To give you an idea we are sharing some colour on our current client base :
a) Nearly 1 out 3 clients is an NRI (including Seafarer).
b) 1 out of 2 clients are married couples.
c) Almost 2 out of 5 clients are female.
d) 1 in 4 clients is less than 30 years old.
e) 25% of our clients are either Govt or PSU employees.
f) 1 out of 5 clients are self employed or entrepreneur.
f) 1 in 4 clients is either a retiree or in senior management role.
Why should I go with SahajMoney ?
Well, that is the question you have to answer for your self as we are not trying to sell ice to eskimos.
We believe that one should compare our service in terms of value that we provide and not just in terms of price we charge.
We truly believe in words of Mr. Warren Buffet, the legendary investor, that ,”Price is what you pay, Value is what you get.”
For your benefit we provide more value than the price we charge. Our value offering is explained in What’s in it for me (WIIFM).
What’s in it for me (WIIFM) ?
We call it CUP model and there are 3 inherent benefit of our fee-only investment advisory services.
- Commission-free saves 1%* every year.
- Unbiased advice focuses on your interest.
- Personalised humane yet pragmatic suggestions.
Our existing clients have derived these benefits and have saved significant sums of money out their hard-earned corpus, which otherwise would have gone back to agents as commission.
All the while they understand as we are only advising and not executing the advice hence, they are also sure of unbiased advice.
Finally, we offer personalised investment advice based on their risk appetite, which makes it a humane approach while being pragmatic at the same time.
How many times I can connect with you?
Who would be advising me during engagement ?
How much flat-fee I pay for initial engagement ?
We charge a flat fee of INR 15,000/- for financial planning exercise and retaining our services for the initial engagement period of 6 months.
We charge our fees based on SEBI’s latest guidelines on the conduct of Investment Advisers. Click Here.
How much flat-fee I pay for renewal ?
After the initial period of engagement we currently charge a renewal fee of INR 5,000/- on half-yearly basis for wealth management services.
During the renewal period we review the portfolio and suggest rebalancing, if any, is required.
How are you able to keep your fees very nominal?
Providing service at a low cost is our mantra. We price our service so that a large section of society could afford it.
Also, it gives us an incentive to control our cost of operation and be more productive with our time.
We charge a fee which could help us in providing a great service to clients at a nominal cost so that we can remain a going concern for years to come.
Can I renew the engagement with gap ?
Considering the VUCA environment that we are living in we would advice to keep on renewing the engagement.
You can surely renew the engagement with gap. However, due the break in continuity of engagement we would not be able to provide you support during the blackout period.
Renewal is mandatory or voluntary ?
Renewal is purely voluntary. Although most of our clients find value in renewing the engagement in order to retain our availability to advice them on ad hoc basis and to review portfolio on a half-yearly basis.
As we live in a VUCA (Volatile, Uncertain, Complex and Ambiguous) world so even well-laid plans are only half done, hence monitoring and review of the financial plan is merited.
Do you offer any discounts?
No, as we religiously follow what is known as Every Day Low Price (EDLP) model by keeping our cost of operation low and pass on the benefits to clients in terms of low fee.
Under fixed fee model SEBI allows RIA’s to charge fees up to 1.25 Lacs per annum. But we are charging only 1/8th of the fee cap as we want to offer affordable service to a large section of society.
Do you offer direct equity or stock advice ?
As we don’t research stocks hence we don’t advice on them.
Based on your risk profile assessment we suggest equity mutual funds (active or passive or both) for your equity portfolio.
Do you advice on real estate ?
As we do a goal based planning we do consider real estate as an asset class in the financial plan if you want same for self consumption.
Having said that as real estate investment is a micro-market investment in its nature. Or in simple terms the returns from real estate investment is difficult to predict hence we stay out of it.
As part of portfolio diversification if a real estate investment is merited then we advice on same via Real Estate Investment Trust (REIT).
Do you advice on gold or other commodities ?
Like real estate we do consider gold as an asset class in the financial plan if you want same for self consumption.
However, as returns from gold or other commodities is difficult to estimate hence we stay out of it.
As part of portfolio diversification if investment into commodities is merited then we advice on same via mutual funds.
Do you proactively advice on new products ?
It has been our experience that new or exotic financial or insurance products creates what is called in economics as – market for lemons.
This means that sellers are better informed about such product than the buyer hence we stay out of it.
We suggest only those products which have historical data to analyze its past performance to reasonably estimate its future performance.
So to answer the question we don’t proactively advice on new products.
So how do I evaluate your service ?
In order to evaluate our service before signing up we suggest you to look at SEBI Disclosure webpage published on our website.
What happens during initial engagement ?
Before starting the engagement we email our Letter of Engagement for the initial period of engagement with you.
As part of SEBI’s compliance requirement we seek your consent for engagement along with your Know Your Customer (KYC) details.
Afterwards, we share our bank details so that you can make online payment towards availing our services through NEFT/IMPS/UPI.
As per SEBI’s guidelines, we do not accept cash deposits into our account.
After receipt of the fee, we share links to the risk profiling questionnaire and to the datasheet.
Based on your inputs we estimate risk profile and capture the required financial data to prepare the goal-based financial plan.
After analyzing the data we estimate your risk profile and share the finding along with first cut analysis with you over email.
Once we receive your acceptance of the estimated risk profile and first cut analysis over email we prepare the Financial Plan.
We share the Financial Plan, which includes a clear action plan, it with you over email in PDF format.
After going through the plan you can set up time for discussion in order to clarify any queries you might have.
As a matter of fiduciary principle we don’t offer execution services but you can seek our advice in executing the suggestion laid out in the Financial Plan during the engagement.
Do you provide specific product advice in plan ?
You would find embedded links in the financial plan and you can directly buy the suggested financial or insurance products by clicking on those links.
Further, as a pure investment advisory service provider we are platform agnostic and do not promote one platform over another.
The reason is that we are not sure how these platforms are going to monetize your data so we suggest that you directly buy the products by clicking on the links embedded in the plan.
Do you review my existing portfolio for planning ?
Yes. We review your existing investment and insurance portfolio as part of the engagement.
After reviewing we provide specific recommendation about continuing or stopping the same in the plan.
Do you provide income tax filing service ?
To avoid any conflict of interest we do not provide any execution service.
So to answer your question we do not provide income tax filing service but we do advice our clients on matters on tax planning related to their investment or insurance portfolio.
What happens during renewal ?
After the initial period of engagement, once you renew the engagement we review your portfolio on a half-yearly basis.
During this process, we ask you to share your portfolio details so that we can review the performance of your portfolio.
After analysis we share an action plan with you and if required suggest changes in the portfolio.
Why pay for service that I could get for free?
Charles Portis once said,” You must pay for everything in this world one way and another. There is nothing free except the Grace of God.” We pay the price one way or another.
We have a choice to pay flat-fee or pay commission to agents in the name of financial planning.
So far Mutual Fund and Insurance Agents in the name of financial planning have been selling complicated products to their clients.
These agents earn commission from the products they sell to clients from the product provider. So naturally the tendency of these agents is to suggest products which earn higher commission to them.
We are challenging this existing set up by taking a flat fee instead of commission from our clients.
We do this so that our clients are suggested products based on their risk profile and financial goals and not based on earning higher commissions from the suggested products.
Choice is yours.
Still, can I do my financial plan by myself ?
Sure. I have been a DIY (Do It Yourself) investor myself and I can say from my own experience that you could certainly do the same.
But what it take is time as all of us have same 24 hours in a day.
So in case you would like you to focus on things you like to do and in case you want you can use our service for your financial planning and wealth management needs.
Many of our clients, who are or have been DIY investors in the past, have also used our service for varied reasons such as paucity of time, seeking second opinions, etc.
My finances are messed up. Where do I start?
As a student of science I have always been fascinated by Newton’s Law of Inertia which states that, “If a body is at rest, it will remain at rest unless it is acted upon by a force.”
So overcome inertia and book a meeting with us by clicking on this link.
Can I include my parents in same plan ?
As parents risk profile and their financial goals could be different than their children and vice-versa hence in order to comply with SEBI’s compliance requirement parents and children financial planning are considered in separate plan.
However, in case you want we can review and suggest health insurance plans for your dependent parents in the same plan.
What I should not expect from this engagement?
A financial plan is a mix of strategic (long term oriented), tactical (short term oriented) and operational (ultra short term) plan.
A financial plan prepared using prudent assumptions and risk-profile based asset allocation is a document which you can use to implement an Investment, Insurance and Tax (IIT) plan in order to achieve your financial goals.
But unless you implement and then adapt the plan based on changes in the external environment the financial plan can only do so much for you.
What happens if my life situation changes ?
As our engagement model could be renewed on a half-yearly basis hence you could revisit the plan with us as and when you face these life changing situations.
Our existing clients who have continually renewed our service after initial engagement have reaped the benefit of the same for many years now.
Do you work in my city or country of residence?
You can be in any part of the world but can seamlessly avail our service from anywhere. As a matter of fact NRI constitute nearly half of our client base.
By design our service model works on an online only model much before the pandemic induced migration to online for many offline service providers.
As all our clients approach us via online mode hence from our experience we have observed that the physical location of our clients is immaterial in our business model.
Which languages do you speak ?
I am fluent in English and Hindi.
I'm convinced. How do I sign up ?
You can initiate the process by booking a meeting with us by clicking on this link.
During the call we take you through the process, show sample plan documents and address queries related to our service offering so that you can make informed decisions about using our service for your financial planning.