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India has close to 1300 SEBI registered investment advisors (RIAs) as on March 2023.
Of the total 1299 RIAs, 64% of the total RIAs or 828 RIAs have individual license, shows SEBI data. If we remove Indore RIAs, who are into stock tipping business, the number of individual RIAs is close to 700.
The number looks small if we compare it with 1.33 lakh mutual fund distributors. In fact, the MF industry has added over 20,000 new MFDs between April and February 2023.
Total RIAs |
Individual |
Corporate |
Ratio of individual RIAs to total RIAs |
1299 |
828 |
471 |
63% |
Mumbai RIA Suresh Sadagopan of Ladder7 Wealth Planners attributes this to stringent SEBI norms. He said, “Becoming RIA requires a professional to spend a lot of money on compliance. Another reason could be the necessity of becoming corporate RIA once the number of client crosses 150. Further, requirement of appointing employees with higher educational qualification increases cost of doing business substantially for many.”
Vishal Dhawan of Plan Ahead Wealth Advisors, Mumbai believes that many people are not sure if clients are willing to pay fees for financial advice. He said,” Many intermediaries believe that they are not in a position to ask for a fee from their client.”
Bangalore RIA Dilshad Billimoria of Dilzer Consultants feels that cap on fees is a major deterrent. She said, “The idea of capping advisory fees in absolute terms discourages many individuals to become RIAs.”
Kalpesh Asher of Full Circle Financial Planners & Advisors, Mumbai feels that the regulator and the industry should work towards increasing awareness about RIAs.
The data further shows that a good number of RIAs are from Mumbai. The commercial capital of India alone contributes 31% to the total RIAs with 405 RIAs including 216 individual RIAs.
Bangalore and Hyderabad follow Mumbai with total count of 115 and 38, respectively. Please note that we have excluded Indore from this due to mentioned reason.
City |
No. of Individual RIAs |
No. of corporate RIAs |
Total count |
Mumbai |
216 |
189 |
405 |
Indore |
113 |
25 |
138 |
Bangalore |
56 |
59 |
115 |
Hyderabad |
18 |
20 |
38 |
Delhi |
61 |
32 |
93 |
Other cities |
364 |
146 |
510 |