Personalised investment advisory ensures accountability: Harsh Roongta

Harsh Roongta says investors should seek personalised advice from advisers with a long-term stake in their well-being, repay loans, secure insurance and build savings habits

Retail investors with adequate resources should always prefer financial advice that is personalised in nature, said Harsh Roongta, founder, Fee Only Investment Advisers LLP during a fireside chat with Vedant Vichare at the Business Standard BFSI Insight Summit 2026 Smart Investor Arena in Mumbai on Monday.

 

When selecting an advisor, investors should ensure that the individual has a long-term stake in the relationship, Roongta added, while sharing insights on what young investors should focus on before starting their investment journey. Roongta, a Sebi-registered investment advisor laid emphasis on ensuring that one is adequately insured and in the habit of saving a portion of their salary before embarking on investments in equity.

 

Talking about investment advisory, Roongta said the biggest value addition that an advisor provides is behavioural in nature, offering the analogy of a personal fitness trainer. When a trainer rings the doorbell at 7 am, he nudges the client to get up and exercise. He also encourages the client to put in extra effort, shares new developments, and removes flaws that may creep into the exercise routine. “An advisor provides similar encouragement, discipline and emotional support in financial matters,” Roongta said.

 

An ideal advisor will aim for optimisation instead of maximisation of returns. “He should push

 

you towards a plan that offers a higher probability of achieving a moderate return over the long term, rather than towards one that tries to maximise return but increases the risks,” he said.

 

Since customised advice takes considerable time it comes at a higher cost, Roongta said. “Its high cost has made personalised investment advice an elitist profession, despite advisors looking to help more people,” he conceded.

 

He asked investors to have a transparent conversation about the advisor’s compensation structure. “Knowing the remuneration model helps assess the quality of the advice you are likely to get,” he said.

 

Driving home the point of personal investment in a relationship, Roongta vehemently opposed taking investment advice from bank relationship managers (RMs) since they may no longer be there when you visit the branch the next time.

 

He was also skeptical about receiving advice from unregistered online advisers. “They are likely to provide generic, rather than customised advice. Who will determine whether the generic advice they are offering is suited to your circumstances?” Roongta said.

 

Investors must also set the right expectations for their advisors. “Do not expect an advisor to deliver higher returns while preventing losses when markets fall,” Roongta said. When investors have unrealistic expectations, they attract people who promise outcomes they cannot deliver, he added.

 

Before starting their investment journey, investors should derisk by repaying their loans and buying requisite protection plans.

 

“Repaying any outstanding loan should be the priority. Also obtain all the right types of insurance — term, health, critical illness and disability insurance,” he said.

 

“While equities can offer higher returns, the returns are not consistent. They could even be negative in some years. Just as you would not borrow to invest in equities, similarly, you should not invest in equities before you have repaid your loans,” he added.

 

Developing the habit of saving at least 20-30 per cent of income should come next. Young investors should focus on saving instead of worrying about investment returns. “Returns on a small initial investment are unlikely to change your life, but the saving habit will,” Roongta said.