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ARTICLE · 30 OCTOBER 2023

Making The Case For Mini-PMS To Fill A Vacuum For Retail Investors

Shanaya S., a software professional aged 28, is looking to invest Rs. 20 lakhs in the stock market.

IndiaStrategy

Shanaya S., a software professional aged 28, is looking to invest Rs. 20 lakhs in the stock market. She already has active SIPs and is looking to make investments in direct equity and build a portfolio. She is looking for professional advice for managing her investments. Where does she go?

Should she seek consultation with a SEBI registered investment adviser (RIA)?

RIAs are not permitted to hold client securities and funds and their role is limited to providing advisory services. They neither have skin in the game nor do they actively manage the funds and securities but rather provide advice for a fixed fee as and when sought by clients. It is no surprise that only 1314 entities are registered as RIAs in India over the last 10 years.

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The contents of this article should not be construed as legal opinion. Recipients should take independent legal advice before acting on any views expressed herein. The comments in the article are as of the laws prevalent on the date the article was originally published. The views stated in the article are not binding on any authority or court, and so, no assurance is given that a position contrary to that expressed herein will not be asserted by any regulatory authority/courts. For any further queries or follow up, please contact Finsec Law Advisors.

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