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
This is the difference between Transaction and Client Experience.
17 April, 2020 | 1 Minute Read
Nano Learning
Yet Another One
What do you think of an empty calendar? While many might not (I didn’t too) like an empty calendar, Author Shane Parrish wrote “An empty calendar is a competitive advantage. Th ....Read More
29 December, 2023 | 2 Minute Read
Nano Learning
Money and Value
Mr. Gokhale, a wise MFD from Mumbai, said, “If you understand ‘value’ and value ‘value’, money will come.” But do people really understand value? Do you? I see a lo ....Read More
15 March, 2024 | 3 Minute Read
Nano Learning
The Billionaires’ Blueprint: Acting Now to Shape the Next Decade
The reason you are seeing success today is because of something you did 10 or 15 years ago. You planted a seed then...It’s now grown into a tree. Isn’t it right?
2 February, 2024 | 2 Minute Read
- 0
- 0
0 Comments