Ladder7 Wealth Planners Private Limited

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Month: November 2021

Is REIT a better way to invest in Real Estate?

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REITs can be another way of investing into Real Estate which yields regular income; one cannot expect an order of magnitude returns here.

Investment in REIT could be considered as a diversification into commercial real estate which mostly investors do not have. The characteristics of REIT are quite different from a typical fixed income asset, which augurs well for diversification, though this also offers a regular stream of income like them.

Is fixed fee model a better fee charge model for the client?

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In fixed-fee model, the advisor charges a lumpsum amount for an estimated amount of work, which is not connected with the quantum of assets. In the fixed-fee model, the regulation limits it to Rs.1.25 Lakhs p.a. Currently, as per IA Regulations, an AUA fee of 2.5% pa can be charged. It is wrongly believed that a fixed-fee will be cheaper and an Asset under Advice (AUA) fee will be costlier. The reality is that they will be quite near to each other.