Mutual Fund – Fee-Only Advisory

Our motto is simple.

If clients make money we make money!

What is the current problem with Mutual Fund distributors?

  1. Mutual fund distributors SELL many schemes to retail clients irrespective of Nature, need for such schemes by a retail investor portfolio.
  2. A mutual fund distributor makes 1% every year for the lifetime of your investment with the AMC irrespective of whether if he gives any advice to the client or not.
  3. As a result, many retail investors have 10-30 schemes in the portfolio with no focus and no returns
  4.  AMC+Advisor keeps charging expense ratios in the range of 2% making money however the retail investor does not make money.

How do we solve the problem?

We give Fee-only Mutual Fund advisory with the following features –

  1. We give unbiased advice and have no tie-up with AMCs for any commission.
  2. We advise our client’s Mutual funds based on the quality of the investment i.e. quality of the underlying MF portfolio, Quality of the fund manager, the conviction of the fund manager, etc.
  3. We charge a flat fee for this advice which is not linked to the percentage of AUM.

This model results in massive savings for the clients as shown below.

YearAUMFees to AUM based AdvisorsFees to JST (Rs)Client Savings (Rs)
0       50,00,000                                                  50,000                        25,000                    25,000
1       55,00,000                                                  55,000                        25,000                    30,000
2       60,50,000                                                  60,500                        25,000                    35,500
3       66,55,000                                                  66,550                        25,000                    41,550
  4       73,20,500                                                  73,205                        25,000                    48,205
5       80,52,550                                                  80,526                        25,000                    55,526
6       88,57,805                                                  88,578                        25,000                    63,578
7       97,43,586                                                  97,436                        25,000                    72,436
8    1,07,17,944                                               1,07,179                        25,000                    82,179
9    1,17,89,738                                               1,17,897                        25,000                    92,897
10    1,29,68,712                                               1,29,687                        25,000                1,04,687

The total fees paid to AUM based advisors was Rs 9.26 L. In JST fee only advisory, it was only Rs 2.75 L. The clients ended up saving 6.52 L Rupees. The 6.52 L rupees saved represents 13% of starting capital! 13% saved is 13% earned!

Compared to others, our clients ended up saving 70% and in some cases even upto 93%!

Here is how the AUM shapes up with AUM based advisors and with JST!

Again as we can see above in AUM-based fees, we see an erosion of Rs 56000 compared to JST and 81000 when compared to the REAL AUM growth.

Investing with JST saved our clients 92.5% of their expense fees*! A rupee saved is a rupee earned! We take that seriously at JST and help our clients save massive money! Write to us today at [email protected]!

Fees

Fees start from 25,000 and can vary based on the nature of complication.