How do fund managers / wealth managers actually make money from clients in India? What should I verify before investing?
I’m trying to understand how fund managers / wealth managers actually make money in India.
I’ve been approached by people selling mutual funds, investment products and other managed-investment solutions, and one thing that makes me uncomfortable is how much they seem to “butter up” potential clients. It makes me wonder where their actual income comes from and whether their incentives are aligned with mine.
but I'm still unclear how there buisness model works
I’m not looking for recommendations on a particular fund. I’m trying to understand the business model and incentives behind the person selling/managing the investment, so I can recognize potential conflicts of interest before investing.
Would really appreciate a detailed explanation, especially with some simple ₹ examples showing how the manager/distributor makes money.