Financial advisors in India are currently at a structural inflection point as India has been playing catch-up to Singapore and Hong Kong over the past few years. The pace of growth in financial services has increased over the past few years. It is caused by higher financial literacy, the use of targeted regulation to curb misselling, the adoption of digital platforms, and the rise of a younger, financially aware and engaged investor.

MDRT members Rajiv Jain and Kavitha Bothra say the sector is changing from a primarily product-distribution model to one led by relationships and holistic advice. The focus is changing from short-term transactions to long-term financial planning and trust-building with clients. These moves, they reckon, are a signal of growing professionalization in the sector.

Making sense of a potential winner

In many established markets, such as Singapore and Hong Kong, fee-based and fiduciary-led models are the norm. In India, on the other hand, it remains commission-driven and is often centered on products. Advisors are seen as agents and not planners. This ‘less mature’ phase is what attracted Jain and Bothra to the profession. Jain says, “India is a huge emerging market, full of opportunity. As fintech adoption increases and financial literacy grows, demand for structured financial planning will go up.”

Bothra agrees with this assessment and points out, “I started out in 2001, when trust was what counted the most. I think the role of a financial advisor, especially in India, is critical. It can shape outcomes for families.” She points out that while the market may be young and relatively small, advisors can play a transformative role in shaping client behavior.

At this juncture in India, one can see a move away from the rigid tied-agency models. Traditionally, tied agents, all of them working with an insurer, were able to build strong relationships. However, this forced them to work with limited solution sets. As someone who works on the Independent Financial Advisor (IFA) model, Jain says, “This model lets me offer multiple solutions across sectors and industries, including insurance, investments, and tax planning. It is also better for customization.”

On the other hand, Kavitha follows a hybrid model. She is tied to two insurers and also sources solutions through broker channels when the client's needs go beyond.This could include working on a specialized health plan or conducting dollar-denominated investments via Gujarat International Finance Tec (GIFT) City.

The flexibility these practices bring makes sure client trust is always high and

advisors who can combine the depth of traditional models with the scope of open architecture will be more successful, as they prioritize client needs over product affiliations. “Since I’m not tied to a single product set, I could recommend what was genuinely right for my client not what I was obligated to sell,” she says. “That shift helped the client secure better long-term returns while staying aligned with his retirement timeline.”

Weighing on the commission model

A major debate over India’s advisory evolution centers on fee-based versus commission-based compensation. Jain says his experience shows a clear difference: retail clients look for commission-based service because they are more price-sensitive. On the other hand, affluent and high-net-worth individuals (HNI) clients are open to fee-based advice. That said, they look for transparency, subject-matter expertise, and value-added in fee-based advice.

Bothra argues that trust is most important, and the specific fee model matters little. “Openness is the skill I have used to deepen client relationships and get more referrals as well.”

The key insight here is that Indian clients are more comfortable working on relationships, existing and new. The duo agrees consistent delivery, backed by solid credentials and transparency, is most important for the practice.

Breaking silos and the tech revolution

The advisors are unanimous in their view that financial planning cannot work in silos. It needs multiple components from insurance, investments, and tax planning to work in tandem. Jain points out, “Insurance is the safety net, while investments are the engine that aids growth and efficiency is provided by tax planning. It is also important for clients and advisors to conduct periodic reviews for sustained growth.”

Bothra broadly agrees: “I feel that protection is the most important, and one can optimize SIPs for investments and use ULIPs for efficiency.”

This new approach reflects a broader sectoral trend, in which clients would like advisors to act as financial centers rather than merely as specific product experts.

Another area that is gaining traction now is niche advisories. Jain observes a spike in interest in ESG-oriented investments, especially among younger clients and family offices and a demand for workable multi-generational wealth transfer products among ultra-high-net-worth individuals (UHNIs) and large business families. He shares the example of a 32-year-old tech entrepreneur who specifically sought investments aligned with sustainability. Jain helped him curate a portfolio combining ESG-focused mutual funds and green bond exposure, giving the client both long-term growth and the satisfaction of backing responsible businesses.

Bothra, on the other hand, says legacy planning is fast becoming a priority. “Many older clients now are looking for clarity on tricky and complex issues such as succession and estate planning to get peace of mind.” The best advisors are those who can offer a broad overview of one’s finances combined with some level of expertise in niche area

As with all other aspects of life, technology is changing advisory services in many ways. Jain, for instance, uses AI tools to gain better insights into portfolios, automate routine tasks, and improve engagement on digital platforms. All this helps him engage with the client more and builds more trust. On her part, Bothra has used AI toolssuch as ChatGPT, Deepseek, WealthWhiz AI, Perplexity to create a proper fintech platform for mutual funds, backed by Customer Relationship Management (CRM)automation.

The advisors feel that tech is great for efficiency, but that trust is built through human connection. The fundamental point is that the old one-size-fits-all paradigm no longer works. Advisors must keep on segmenting, personalizing and educating clients.

What lies ahead

Both advisors say that rising credibility is key to global recognition. This involves building trust by being transparent and ethical. Following through on tech-enabled scale and continuous upskilling will also build more trust.

It can be said India does not need to copy existing mature markets as it has a young investor base and digital rails; it can leapfrog to the top table by offering advice by leveraging tech tools with the power of relationships.

Contact: MDRTeditorial@teamlewis.com

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