Shastri Advisors provides wealth management services on a fee only basis. We think that fee-only model provides a model that is in the best interests of the client. More and more advisors are switching to fee-only service model for this same reason. With a commission-based only there is a huge conflict of interest between the advisor and the investor. In such model an advisor may suggest investment just for generating some commission and may even advise more frequent rebalancing of portfolio than is required. Therefore, commission-based models carry a huge conflict of interests. A fee-only model avoids this conflict but participating in best interests of client and so we believe. Our motto is that the best of our clients is best for us too. As investor's investments grow fee-only models will participate in that growth by charging a minimum percentage fee for the assets under management. If investments decline so will the fee to the advisor.

 

More important than anything else is the qualification and experience of an investment advisor. We cannot emphasize more on making sure that your advisor has the subject matter expertise. You must not compromise anything for the best advisors and price should be the least of concerns when it comes to your investments. Our advisors are highly qualified with CFA charter, which is the highest certification in field finance and have a strong experience in variety of complex financial instruments. CFA curriculum instills a strict code of ethics and fiduciary responsibilities in the charterholders. Following is the schedule of fees for investment advisory services that Shastri Advisors provides. The advisory services are very competitive and are well worth the advice.

 

Comprehensive Financial Planning

This includes analysis of client situation, behavioral characteristics, establishing return objectives and risk tolerance bands, setting up the investor policy statements and advising appropriate asset allocation in diversified asset locations. Thereafter, annual updates to investor policy statements are priced at hourly rate depending upon situational changes. Our fees are based on net worth because individual financial planning gets more complex with increase in net worth.

Net Worth Financial Planning Fee
$100,000 - $1,000,000 $1,200
$1,000,000 - $2,500,000 $2,100
$2,000,000 - $5,000,000 $3,200
$5,000,000 - $10,000,000 $4,100
$10,000,000 and over $5,000 and up

 

Quick financial checkup: $750

Hourly rate: $175 per hour

 

Investment Management Services

This includes management of investments in accordance with investor policy statement, monitoring for allocation deviations and changes in investment suitability, rebalancing of portfolio and advising appropriate investment ideas. Custodian expenses and investment expenses are separately listed under the Other Fees section and are not held by Shastri Advisors.

  Investment Portfolio Annual Fee (In %)
First $1 - $250,000 1.25%
Next $250,000 - $500,000 1.10%
Next $500,000 - $1,000,000 0.95%
Next $1,000,000 - $2,000,000 0.80%
Next $2,000,000 - $4,000,000 0.70%
Next $4,000,000 - $7,000,000 0.60%
Next $7,000,000 - $10,000,000 0.55%
Next $10,000,000 and up 0.50% and below

Minimum fee charged is $250 per quarter. Fees are billed on a quarterly basis and are deducted from the custodian account.

 

High Yield Management Services

This type of management service is usually provided to high net worth individuals with high ability to take risk and seeking higher returns. These investments offer high return potential but are risky in nature. Typical instruments are OTC derivatives, equity options, leveraged instruments, convertibles, structured notes, swap contracts etc. We will NOT advise such investments to clients who are risk averse or who do not have ability to take on the level of risk required. Risk tolerance is identified primarily by the source of wealth, measure of wealth and age of the individual.

The schedule of fees is different for High Yield Management Service than the general Investment Management Service because the portfolio manager has to actively manage the portfolio to generate the kind of returns expected. The only motive of the portfolio manager is to grow the wealth as much as possible while considering risk/reward characteristics of the investments. A fee out of the profits makes sure manager gets compensated only when he generated positive returns and thus works in best interest of the client.

Portfolio Size Front Load Profits Back Load
up to 250,000 1.5% 15% 0.25%
$250,000 - $500,000 1.5% 15% 0.25%
$500,000 - $1 million 1.5% 15% 0.25%
$1 million - $2.5 million 1.25% 15% 0.25%
$2.5 million - $5 million 1.25% 15% 0.15%
$5 million - $10 million 1.25% 10% 0.15%
$10 million and up 1% 10% 0.15%

 

Other Fees

Investment expenses: The expense ratio usually ranges between 0.30% to 0.95% depending upon funds and instruments in the portfolio and the stock-to-bond ratio within the portfolio.

Custodian Expenses: Our custodian charges $10 to $20 for stock trades and less than a dollar per contract for option trades.

 

Click here to contact us today to find more about our services and how we can help achieve your financial goals. One of our experts will get in touch with you shortly.