10 questions every HNI investor should ask about their portfolio — and their advisors
Most Indian HNI investors are paying significantly more in hidden costs than they realise — and receiving advice that is shaped by what their advisor earns, not what is best for their family. This checklist helps you identify the gaps.
Conflict of Interest Audit
Do you know exactly how each of your advisors is compensated?
Are any of your advisors earning commissions from the products they recommend to you?
Has your advisor ever recommended a product change without a clear, documented reason?
Do you receive objective comparisons between products, or only those your advisor distributes?
Portfolio Structure Audit
Do you have a written Investment Policy Statement aligned to your goals and risk tolerance?
Is your asset allocation reviewed at least annually against your life stage and goals?
Do you hold more than 5–7 mutual fund schemes? (More often signals over-diversification)
Can you articulate the role of each holding in your portfolio?
Cost & Tax Audit
Do you know the total annual cost (TER + advisor fee) of your portfolio as a percentage?
Is your portfolio reviewed for tax efficiency — LTCG harvesting, loss booking, HUF optimisation?
Frequently Asked Questions
What is a reasonable total cost for a well-managed HNI portfolio in India?
A well-structured HNI portfolio should have a total annual cost (fund expenses + advisor fee) of 0.5–1.5% depending on complexity. If you are paying above 2% in total costs, it is worth reviewing whether you are receiving value for that cost.
How do I find out if my mutual fund advisor earns commissions?
You can check the AMFI website or ask your advisor directly for their ARN number and distributor status. If they are a 'distributor' rather than a 'registered investment advisor' (RIA), they earn commissions from the products they sell you.
What is the difference between a distributor and a fee-only advisor in India?
A mutual fund distributor earns commissions from AMCs for selling their products. A SEBI-registered investment advisor (RIA) or a fee-only advisor earns only from the client and cannot receive commissions. NextGen Family Office Services operates on a purely fee-based model.
Want personalised guidance?
Our CA-led team offers a complimentary initial consultation — no obligation, no product pitch. Just an honest conversation about your family's situation.