The nephew has just begun to earn. The euphoria of the first salary. The joy of living at home and seeing almost the entire money sit warmly in the bank account. Checking every five minutes to see that indeed the balance reads what it did five minutes ago. But he is Gen Z and is eager to do more with his money than his elders were at his age. He’s seen his aunt all over social media. He’s seen her book at airports. He’s heard some good stuff about making your money work for you. So, he comes calling for advice. People in the financial advisory sector will understand what a moment this is—your own extended family is the absolute last to take you seriously! Evidence of this is in the investments he’s already made, starting SIPs three months ago in a few funds, taking advice from somebody he was referred to.
These are good funds, but there are already two problems. One, the funds don’t have a story to tell. They are just good funds that some well-wisher put him into, they are not aimed at solving any of his concerns. Two, he is using a platform that only gives the option of a regular plan. Nephew is getting his advice for free and is then paying the platform trail commissions for the rest of his life on a growing portfolio for simply being the shop front that vends.