If you wish to start investing in mutual funds, then this is the perfect pack for you. SEBI-registered RA and RIA will identify suitable funds to invest in based on your risk profile and life stage. Financial planning will be included in this package automatically, so you need not pay extra for it.
The mutual funds will be purchased via a demat account in the direct format. The investor is supposed to select a demat provider based on their preference. There are 14+ demat providers that meet our reporting standards and compliance requirements; the list shall be provided to investors upon request. Kindly note that we do not receive commissions, brokerages, or points for the demat account opening or transactions.
Since the holdings are in demat form, the investor will have a fully functional desktop/mobile website/app, and we will guide them on how to operate it and generate reports. At no time should the investor provide the user ID or password to the investment adviser or their staff.
The products offered would be mostly ETFs that have up upto 90% lower costs than a regular mutual fund, source. The selected products will also be pledgeable across major brokerages. This ensures that the investor could either opt for a loan against mutual funds or utilize the funds for F&O trading, if the requirements so demand. If there are no efficient ETFs, the next-best active direct mutual funds will be provided. The SEBI RIA will never recommend regular mutual funds that have a trail commission.
The costs are very low, and it starts at just ₹4999 for a portfolio size upto 10 lakhs, i.e. 0.5% of AUM. For example, if your holdings are 25 lakhs, then the annual costs would be ₹12,500. This fee will drop to 0.35% when the AUM exceeds 1 crore and to 0.3% when the AUM exceeds 10 crore. This fee is an annual payment and will be charged in advance. Investors opting for this package can generate an additional 0.5% to 1% in returns compared to a regular mutual fund purchased via an AMFI MFD.
The portfolios will be assessed monthly, and investors are required to send their holding statements periodically or as required by SEBI RIA. The rebalancing/restructuring would be done on a quarterly or half-yearly basis.
Note: Investments in the securities market are subject to market risks, including the potential loss of principal. Past performance does not guarantee future results. Information provided is for educational purposes only and should not be considered financial advice. Investors should read all related documents carefully and consult a certified advisor before investing. Registration granted by SEBI and Enlistment with RAASB/BSE and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. The investor is requested to take into consideration all the risk factors before actually trading in stocks or derivatives.