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Before we begin the argument, we need to understand a few things clearly. Advisory does not always mean piecemeal advisory ona part of personal finance like investment or insurance. On the contrary, holistic advisory covers key elements of personal finance such as Cash flow, risk profile identification,risk management, portfolio construction based on suitable asset allocation, linking goals and finances, retirement, debt management, tax planning and estate planning. Each of these key elements is interlinked. The fact that they are interlinked is most often forgotten or ignored and that's why a standalone advisory will never give you a desired output. We will examine why.

Free Vs. paid advisory is an old argument that has found no resolution in the finance world. Free advisory vs. Paid has its own pros and cons and it really depends on us to sift through the hay stack and find the needle.

Free Advisory is everywhere. Even a sanitary worker in Dalal Street will have free advice to dole out about what stocks and shares to buy. The question is the credibility of your source and how far would you believe them and invest your hard-earned money.

The free advisory is a product of people's ignorance about money matters. Most of them, don't have the time nor the inclination (in some cases the education) to learn about personal finance. This lack of education is due to the fact that in our schools and colleges, even basic personal finance and practical implications are not taught. They have no idea how money matters works and nor can they grasp the finer aspects at large.

Many have lost a fortune in money by following on sites that give stock tips and advice, anonymous deep throats who claim to have inside information about XYZ stocks.

There are also many who write financial blogs and most of them have a huge following but it is important for us to understand the subtle difference between an advisory (who is earnestly giving out sensible advice) and those who write information promoted content. To be fair, there are financial experts who have a good standing in the industry and who write and provide expert advice about where to invest and in what. Most often than not, their advice might not seem attractive or feasible to the public because we would rather hear good news than bad.

Information promoted content is nothing but articles and blogs are written by a company that offers a slew of financial products for the user to invest in. Most often than not, financial experts are roped in to write blogs and articles to promote a certain product(s) and they use their vast readership base to their advantage. What's sad is the fact that these bloggers (so called financial experts) are not bothered by the conflict of interest? What's even more troubling is the question of conflict of interest that doesn't seem to bother them at all.

It's a Fad that all agents, bankers who sell product call themselves as financial consultants and financial advisor. They send you nice quotes about personal finance and forward articles. The basic reality is that they are in the end salesmen who are peddling a product. They have targets and to meet it they need to upsell, promote, cross sell… basically, do anything to look good at the end of the month.The free advisory is 'free' and does not factor in your unique individual profile in terms of earnings or risk capacity.

Now let's move onto fee-based planners. Fee-based planners are financial planners who would typically earn a fee by planning your financial future and also get a handsome commission from the product/service manufacturer (Read Insurer, Mutual Funds, Home Loan companies etc.) that he is recommending and investing via his agency code. There may be a conflict of interest.

Here I would also like to point out one of the main regulations that Securities and Exchange Board of India has laid down–

An investment adviser shall not receive any consideration by way of remuneration or compensation or in any other form from any person other than the client being advised, in respect of the underlying products or securities for which advice is provided.

In other words, it’s plain illegal to provide financial advice for a fee and also get a commission on the side from the product/service provider.

From the client perspective, it is convenient and safe if there is a one stop destination from advisory to execution under one roof. SEBI allowed corporate agents to give advice and execute but there should be arm’s length distance between advisory channel and execution wing.Many fee-based planners most often discourage you from investing on your own for obvious reasons. You may be under safe hands, if your Fee-based advisor not insisting on execution through their agency wing and disclosing earning they will make out of execution, if you opt for execution.

Now that free advisory and most of fee-based advisory are risky options to consider you are left with only one option, which also happens to be the right one. Yes, Fee – only financial planners!