Snehdeep Chalak

We have had a huge influx of new clients in this quarter. We onboarded 52 new families in the last 3 months. Almost all of these clients were DIY investors. We invested 29 Crs of new money in equity MFs in the last 10 weeks. We are now one of the fastest growing mid-size boutique wealth mgmt outfits in India with MF AUM growing by 2.5x in last 2 yrs.

Team Moneyworks4u is closing 2024 on a strong note. Number of families onboarded : 168 Net Inflow : 38 Crs Net SIPs : 72L All this with no story telling, zero NFO application, no exotic products expect one AIF in Emerging Markets. All the clients onboarded were DIY investors or references from existing clients.

I have some advice for budding financial advisors. Join India's largest advisory firm. Take a guess, take a guess. The typical Indian consumer gets his advice for free from Youtube/Insta/Social media and executes it for free on Zerodha/Groww. He or she won't pay. Just WON'T PAY. MFDs with legacy books have done well. But 5 years of a raging bull market haven't grown their numbers. RIAs have declined. Fintechs have raised money, thrown money at the Indian consumer and failed. Only one success stands out - Youtube! Indians simply won't pay for financial advice because they are paying Youtube already. One way or the other. Creators are basically 'associates' of this giant wealth company. They were smart enough to join early and reaped the rewards. Brokers were also smart. They not only own huge YT channels but since execution happens 'for free' on them, they're double beneficiaries. AMCs are joining the party through associate firms. Some 'high end' consumers might pay a bit for advice. But it is a struggle. I've heard India's most premium wealth manager (can't take the name) struggle to collect fees. No amount of Sebi circulars, well intentioned warnings and finger wagging (including by me) have done anything to even slightly affect this model. What about AI? AI can create videos too. But that shift hasn't happened in a big way yet. Frankly, not sure AI will change much. Do you agree with me? Very keen to hear views from seasoned people out here.

Baseless statement. Market share of MFD in MF AUM has actually improved in last 10 yrs. 74% of Individual money is invested in regular plans. Even in the rest of the 26% there will be money routed through RIAs and large family offices portfolios. Banks & National distributors have lost market share in the last 10 yrs. Market Share of direct plan for equity/hybrid segment is not growing as some would want you to believe. If we add PMS/AIF to the equation the MFD market share is even higher. Most of the direct plan AUM is either Corporate treasury money or retail money via Fintech platforms. Very smallcap fraction of HNIs would have a large direct portfolio. People have to go to Fintech platform because there aren't too many MFDs out there and it really is not feasible to manage a very large number of retail investor book because profit margins are wafer thin. Sure there are MFDs who may be indulging in mis-selling. But to make a broad brush statement about 1000s of MFDs spread across India is not fair. Many studies in India(Axis MF) and in USA(Dalbar) have highlighted that investor returns are much lower than fund returns because of the Behaviour Gap. In the past yrs we have onboarded a few hundred DIY clients. Most of these investors started off as DIY, but when the portfolios became too big or when the job roles became demanding they decided to give up control to us. I know a few other MFDs who have also onboarded many DIY investors. Instead of painting things in black and white, why don't we talk about red flags and green flags to see in a MFD?

Over 4 years, Basant Maheswari's PMS portfolio made 4.94% CAGR, failing to beat FD returns. At a 2% fixed fee on an average AUM of 300 crores, he made 6 crores annually. Even if you lose, he wins Now he’s selling a new small case. How much more will you pay to stay fooled?

If you have benefited from my analysis build your mutual fund portfolio with me. If you saw my tweets and didn't act on it become my client so that you get personalized advise and my advise doesn't end up becoming random tweet in the ocean of twitter.

Index funds and direct plan Aum will keep growing faster, not only from new flows, but also coz they generate higher returns. on aggregate active funds underperform, hence index aum ⬆️ direct plan aum ⬆️ coz MF regular plan underperfoms the most

Team Moneyworks4u is closing 2024 on a strong note. Number of families onboarded : 168 Net Inflow : 38 Crs Net SIPs : 72L All this with no story telling, zero NFO application, no exotic products expect one AIF in Emerging Markets. All the clients onboarded were DIY investors or references from existing clients.

We have further reduced the equity fund allocation in client's portfolio to below 50% now.

An unfortunate side effect of projecting compounding over long term is that all numbers look massive at the end of the period. Example 1 - I pay 4000/month to our maid with an yearly increase of 5%. If instead I invest this in an equity fund with 12% returns my portfolio value will be 1.09 Crores. So everyone who wishes to retire early should stop employing housemaids? Example 2 - I pay 1500/month for our home Wifi (assuming an yearly increase 7%). Using same as above, my portfolio value will be ~50L. So should I immediately stop my Wifi connection? For all expenditures the consumers assess the value provided vis-a-vis the cost incurred, but when it comes to financial advise the only aspect considered is cost? In my opinion, the points to be kept in mind when working with an MFD 1. Have my financial goals/risk profile been assessed? 2. On what basis are funds recommended? 3. How much is this service costing me (anything more than 0.5 - 1% is a red flag) 4. Do I receive regular updates on markets and portfolio performance? 5. Is my MFD contacting me during volatile periods to communicate any action to be taken PS - If you have not been contacted for even 6 months post investment by your MFD, then please send him a message saying you would like to discontinue. And find another MFD/RIA. Too many online financial gurus and finfluencers have misguided investors about the need for financial advisors. The truth is that a significant part of the investing population will stand to highly benefit when working with an honest MFD. And businesses of many such honest MFDs are growing tremendously as well (attaching sample AMFI data). Someone with 100 Cr AUM typically earns 70-80L / annum.

Team Moneyworks4u is closing 2024 on a strong note. Number of families onboarded : 168 Net Inflow : 38 Crs Net SIPs : 72L All this with no story telling, zero NFO application, no exotic products expect one AIF in Emerging Markets. All the clients onboarded were DIY investors or references from existing clients.