Mutual Fund Advisory

Why Should You Opt for our Mutual Fund Advisory Services?

As a customer, you have every right to ask the above question. Our investment philosophy is long-term & we don’t believe in over-exposing our customers to unnecessary risk. And we start with making a bold statement – Mutual Funds are not a means to pursue highest returns; they are a means to achieve higher risk adjusted returns basis customer’s risk appetite & needs.

During our arduous market study, we realized that several individuals had been advised mutual fund schemes which did not suit their risk profile; At GreenEdge Wealth Services, we believe that customer suitability, risk profiling and aiming for higher risk-adjusted returns is of paramount importance. Unlike the dozens of wealth management firms operating in the country, we do not make a living out of distributing third party financial products like mutual funds. (can go upto 1.15% of your corpus each year!)We advise our customers direct plans of MFs and our only source of income is fees charged to customer.

Market Study — Shocking Instances of Mutual Funds Advice that we have come across

During our market study, we came across below observations which were a cause of worry:


1. Fund Manager is also Prone to Biases –

While making recommendations, the ‘advisories’ often do not pay attention to the fund manager’s strategies and past performance record. The managers’ bias affects selection of investments in the fund and hence is one of the most important but mostly neglected driver of returns.

2.  Maximum Returns with Scant Regard for Underlying Risks –

They pursue returns without understanding customer needs completely. Mutual Funds are meant to provide optimized returns based on risk the customer is willing to take; not necessarily the highest returns! (You can read the fiascoes of some mutual fund schemes of J P Morgan AMC & Taurus AMC here – Popular Mutual Fund Scheme Fiascoes

3.  Substituting Debt with Equity Funds –

Some believe debt funds provide low returns and suggest equity funds as a substitute to debt funds. These are not interchangeable in our view!!

4.  Over-Emphasis on Past Performance –

They use past performance as the most important metric for recommendations. There are several variables which are very important in deciding a recommendation.

5.  Over-Exposure to Some Sectors –

They would recommend equity funds with 40-50% exposure to banks and financial institutions (BFSI) and additionally also recommend BFSI schemes. This could leave the customer over exposed to the BFSI sector!

6.  Ignoring Risk – Adjusted Returns Concept –

Amongst the top debt funds, we have seen that just for 50bps or 0.5% higher returns over the next best fund, they are willing to recommend schemes which take 50% more risk!!

7.  Robo Advisory – Untested & Over-simplification? –

Numerous robo-advisories have mushroomed over the last 1 year. We believe they are yet untested over a long period and we noticed that these would mostly provide recommendations basis performance and certain ratios; over view is that recommendations need to be based on more variables.

8.  Conflict of Interest? –

For many online free advisories, we have observed that umpteen sections on their websites / portals are sponsored by the mutual find AMCs themselves; then how do these portals assure investors that their recommendations are free from conflicts of interest?

While undertaking our analysis and review, we have considered all the above factors before recommending funds basis the individuals’ risk profile. We are currently offering ‘ONE TIME REVIEW & RECOMMENDATION OF MUTUAL FUNDS (EQUITY, DEBT, HYBRID) PORTFOLIO. We are a FEE-ONLY Mutual Fund Advisor’.

PS – Equity Mutual Funds are NOT a substitute for direct equity exposure (research-backed stock-specific investing).

Feel free to reach out to us on [email protected] in case you wish to avail or know more about our services.