Incidental Advice and Responsible Distribution


Amar Pandit
A respected entrepreneur with 25+ years of Experience, Amar Pandit is the Founder of several companies that are making a Happy difference in the lives of people. He is currently the Founder of Happyness Factory, a world-class online investment & goal-based financial planning platform through which he aims to help every Indian family save and invest wisely. He is very passionate about spreading financial literacy and is the author of 4 bestselling books (+ 2 more to release in 2020), 8 Sketch Books, Board Game and 700 + columns.

March 13, 2025 | 2 Minute Read
Incidental advice is at the core of responsible distribution.
The SEBI Chief has made it clear—mutual fund distributors are allowed to give incidental advice. But what does this really mean?
Incidental advice is neither portfolio management, nor discretionary decision-making.
It is a guide. It is a context. It is helping investors make informed choices.
Mutual fund distributors are not just product sellers. They are enablers of good financial decisions. They help clients understand risk. They help clients choose suitable products. They help clients stay invested when their emotions take over.
Without incidental advice, distribution is incomplete.
Imagine a doctor who prescribes you medicines without diagnosing you. Does not explain how / when / why to take it. That is what pure distribution looks like.
Now imagine a doctor who diagnoses thoroughly and then prescribes medicine and explains its purpose, side effects, and the dosage . This is what responsible distribution looks like.
The investor’s journey is full of uncertainty. Market ups and downs. Changing goals. Unexpected expenses. Behavioral mistakes.
A good mutual fund distributor provides more than products. They provide perspective. They provide reassurance. They provide discipline.
This is why incidental advice matters. It bridges the gap between investment products and investor outcomes. It ensures that clients don’t just invest—they invest wisely.
It also builds trust. Investors don’t want transactions. They want guidance. They want to know that someone is looking out for them.
The best distributors understand this. They educate their clients. They simplify complex ideas. They stop clients from making costly mistakes.
Selling funds is easy. Helping clients stay the course and buy & build is hard.
That is where the real value lies.
Incidental advice is not a restriction. It is an opportunity.
An opportunity to build deeper relationships. An opportunity to create long-term impact. An opportunity to stand out in an industry that often prioritizes sales over service.
Being a distributor is not just about execution. It is about enabling financial well-being.
And that is what makes all the difference.
Similar Post
Nano Learning
Are you Limitless or Limited?
Jim Kwik in his book “Limitless” writes “one of the only infinite resources in this world is Human Potential. Almost everything else is finite, but the human mind is the ulti ....
Read More
11 December, 2020 | Minute Read
Nano Learning
The Greatest Alpha
Here is a question for you...
What is the greatest alpha that you bring to your customers/clients?
The common answers...
Beating the Benchmark (this technical one comes first on ....
Read More
3 November, 2023 | 2 Minute Read
Nano Learning
Build the Business Your Clients Deserve
Your clients have trusted you for years.
They’ve followed your advice.
They’ve grown their wealth.
And they believe in you.
But here’s a question most advisors never ask:
Am ....
Read More
20 June, 2025 | 1 Minute Read
Nano Learning
Are you Limitless or Limited?
Jim Kwik in his book “Limitless” writes “one of the only infinite resources in this world is Human Potential. Almost everything else is finite, but the human mind is the ulti ....
Read More
11 December, 2020 | Minute Read
Nano Learning
The Real Value
We have always looked at technology from a productivity or efficiency perspective.
“I can do this cheaper.
I can save more time.
I can do this faster.”
But no matter h ....
Read More
9 June, 2023 | 2 Minute Read
Nano Learning
The Gift With The Highest Return
I read something Shane Parrish wrote the other day that has stayed with me. He said, “The gift with the highest return is believing in someone before they believe in themselves. ....
Read More
11 July, 2025 | 3 Minute Read
- 0
- 0
0 Comments