[vc_row][vc_column][vc_tta_accordion active_section=”1″ collapsible_all=”true”][vc_tta_section title=”Learn more about SIP” tab_id=”1501506375992-76d74835-9e1a”][vc_column_text]1.What is “SIP” in Mutual Fund?
Systematic Investment Plan (SIP) is an investment vehicle offered by Indian wealth management to investors, allowing them to invest using small periodically amounts instead of lump sums. The frequency of investment is usually monthly, quarterly, Semi-annually and annually
2.Who can participate in Mutual Funds- SIP using Indian wealth management Platform?
All investors registered with Indian wealth management are KYC complaint and having the Mutual Fund permission enabled in his/her account can start SIP through us.
3.When customer can start the SIP?
Customers can start SIP today itself by selecting “I would like to pay my first installment now”, however SIP can be registered for future date as well. Once the NACH/ECS/Auto Debit mandate status is approved by customer’s designated bank, customer can start registering SIP for future date under that mandate. The Number & Value of SIP Registration at client level will be restricted to the upper limit of the selected Mandate.
4.Can I cancel my ongoing SIP?
Yes, you can cancel your ongoing SIP during Mutual Fund Trading hours. There is an option to “Delete” a SIP on SIP registration report.
5.Why should I invest through Mutual Fund SIP?
The Mutual Fund SIP offers the following advantages
Disciplined investment approach:
Instead of investing large amounts sporadically, you achieve better results by investing smaller sums regularly. The Mutual Fund SIP ensures that you save some amount at least for the next 12-month period
Rupee cost averaging:
With Mutual Fund SIP you buy more units when the prices are low and fewer units when the prices are high. This results in averaging of cost per unit
Avoids sentiment-driven investments:
By making you invest the same amount every month (or every quarter), the Mutual Fund SIP helps you avoid the common error of investing larger sums in bull markets (when the markets are at a high) and smaller sums in bear markets (when the markets are at a low)
Allows investments in small amounts:
With a monthly investment of as little as ₹1,000*, you can easily include the Mutual Fund SIP within your monthly budget, without altering your financial plans significantly
Convenience:
You have the option of directly debiting your bank account for payments made towards the Mutual Fund SIP. All you need to do is give standing instructions once towards the same, and leave the rest to us.
6.What is the difference between Mutual Fund SIP request and Mutual Fund SIP order?
Mutual Fund SIP request is an authorization given by you to Indian Wealth Management for placing buy orders as per your instructions mentioned in the request. The orders placed by Indian Wealth Management as per your authorization vide the SIP request are called Mutual Fund SIP orders.
7.Do I need to allocate funds for placing a Mutual Fund SIP Request?
No. Mutual Fund SIP Request is merely an authorization given to Indian Wealth Management to place order in your account as per your instructions vide the SIP Request. Hence, funds are not required or used when you place Mutual Fund SIP Requests. Your funds would however be required and used at the time of placing the SIP orders.
8.What is meant by Minimum and Maximum Period?
Minimum Period’ is the period below which a Mutual Fund SIP request cannot be placed ie. You need to place a Mutual Fund SIP request for a period equal to or greater than the minimum period.
The Order placement page displays the Minimum period and the Maximum period at the time of placing the SIP request.
Indian Wealth Management may change the Minimum period or the Maximum period from time to time without giving any prior notice.
9.What is “Amount” based Mutual Fund SIP?
Amount based Mutual Fund SIP is a SIP type wherein a fixed amount (or approximately the same) is invested in your desired Mutual Fund Scheme at each frequency. In case of Amount based SIP, you need to specify the amount to be invested in the Mutual Fund Scheme at your desired frequency. The amount specified by you should be equal to or above the minimum amount defined by Indian Wealth Management.
10.Can I place Mutual Fund SIP request in any Mutual Fund Scheme?
Mutual Fund SIP requests can be placed only in select Mutual Fund which are available on BSE Star MF/ MFSS scheme master.
Indian Wealth management may include or exclude any Mutual Fund Schemes from the list at any time without any prior intimation.
11.At what price will my Mutual Fund SIP orders be placed and where can I see details of the same?
You can view the details of all successfully placed SIP orders in your account in the normal Mutual Fund SIP order book.
12.How do I differentiate between SIP orders and lump sum orders in the order book?
Mutual Fund SIP orders and lump sum order books details are visible from 2 different reports.
13.Where can I view the SIP order placement date for my SIP requests?
You can view your order placement date in the Mutual Fund SIP Registration book under the column ‘Holding’.
14.Is the any brokerage/ advisory fees on Mutual Fund SIP transactions?
No, there is no brokerage/advisory fees for Mutual Fund SIP transactions. But ₹10 per installment will be charged over and above normal brokerage for executing the SIP Transaction.
15.Can I sell units which I have bought through Mutual Fund SIP?
Yes. Units bought in your Demat account through Mutual Fund SIP are at par. You can therefore sell/ otherwise deal in such units at any time as per your requirement.[/vc_column_text][/vc_tta_section][vc_tta_section title=”Learn more about Mutual Funds” tab_id=”1501506376034-48002c91-46ed”][vc_column_text]1.What is a Mutual Fund?
An investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets. Mutual funds are operated by investment managers, who invest the fund’s capital and attempt to produce capital gains and income for the fund’s investors. A mutual fund’s portfolio is structured and maintained to match the investment objectives stated in the scheme information document
2.What does a Mutual Fund do with investor`s money?
Anybody with an investible surplus of as little as a few hundred rupees can invest in mutual funds. The investors buy units of a fund that best suits their investment objectives and future needs. A Mutual Fund invests the pool of money collected from the investors in a range of securities comprising equities, debt, money market instruments etc. after charging for the AMC fees. The income earned and the capital appreciation realized by the scheme, are shared by the investors in same proportion as the number of units owned by them
3.What is the Regulatory Body for Mutual Funds?
Securities Exchange Board of India (SEBI) is the regulatory body for all the mutual funds mentioned above. All the mutual funds must get registered with SEBI.
4.Why should I choose to invest in a mutual fund?
For a retail investor who does not have the time and expertise to analyze and invest in stocks and bonds, mutual funds offer a viable investment alternative.
This is because:
- Mutual Funds provide the benefit of cheap access to expensive stocks
- Mutual funds diversify the risk of the investor by investing in a basket of assets
- A team of professional fund managers manages them with in-depth research inputs from investment analysts.
- Being institutions with good bargaining power in markets, mutual funds have access to crucial corporate information which individual investors cannot access.
5.What are the advantages of investing in a Mutual Fund?
There are several benefits from investing in a Mutual Fund.
Small investments: Mutual funds help you to reap the benefit of returns by a portfolio spread across a wide spectrum of companies with small investments. Such a spread would not have been possible without their assistance. Professional Fund Management: Professionals having considerable expertise, experience and resources manage the pool of money collected by a mutual fund. They analyze markets and the economy to select good investment opportunities.
Spreading Risk: An investor with a limited amount of fund might be able to invest in only one or two stocks / bonds, thus increasing his or her risk. However, a mutual fund will spread its risk by investing in a number of sound stocks or bonds, across sectors, so the risk is diversified, along with taking advantage of the position it holds. Also in cases of liquidity crisis where stocks are sold at a distress, mutual funds have the advantage of the redemption option at the NAVs (Net Asset Values).
Transparency and easy access to information: Mutual Funds regularly provide investors with information on the value of their investments. Mutual Funds also provide complete portfolio disclosure of the investments made by various schemes and also the proportion invested in each asset type and clearly layout their investment strategy to the investor.
Liquidity: Closed ended funds have their units listed at the stock exchange, thus they can be bought and sold at their market value. Over and above this the units can be directly redeemed to the Mutual Fund as and when they announce the repurchase.Open ended funds, the units are available for subscriptions redemption on all business days on an ongoing basis.
Choice: The large amount of Mutual Funds offer the investor a wide variety to choose from. An investor can pick up a MF scheme depending upon his risk / return profile.
Regulations: All the mutual funds are registered with SEBI and they function within the provisions of strict regulation designed to protect the interests of the investor
6.How do mutual funds diversify their risks?
An investor can reduce his total risk by holding a portfolio of assets instead of only one asset. This is because by holding all your money in just one asset, the entire fortunes of your portfolio depend on this one asset. By creating a portfolio of a variety of assets, this risk is substantially reduced.
7.Can mutual funds be viewed as risk-free investments?
No. Mutual fund investments are not totally risk free. In fact, investing in mutual funds contains the same risk as investing in the markets, the only difference being that due to professional management of funds the controllable risks are substantially reduced.
8.What are the risks involved in investing in mutual funds?
A very important risk involved in mutual fund investments is the market risk. When the market is in doldrums, most of the equity funds will also experience a downturn. However, the company specific risks are largely eliminated due to professional fund management.
9.What are the different types of Mutual funds?
On the basis of Objective:
- Equity Funds/ Growth Funds:
Funds that invest in equity shares are called equity funds. They carry the principal objective of capital appreciation of the investment over the medium to long-term. The returns in such funds are volatile since they are directly linked to the stock markets. They are best suited for investors who are seeking capital appreciation. There are different types of equity funds such as Diversified funds, Sector specific funds and Index based funds.
- Diversified funds
These funds invest in companies spread across sectors. These funds are generally meant for risk-taking investors who are not bullish about any particular sector.
- Sector funds
These funds invest primarily in equity shares of companies in a particular business sector or industry. These funds are targeted at investors who are extremely bullish about a particular sector.
- Index funds
These funds-invest in the same pattern as popular market indices like CNX Nifty Index and BSE Index. The value of the index fund varies in proportion to the benchmark index.
- Tax Saving Funds
These funds offer tax benefits to investors under the Income Tax Act. Opportunities provided under this scheme are in the form of tax rebates u/s 88, saving in Capital Gains u/s 54EA and 54EB and deductions u/s 80C. They are best suited for investors seeking tax concessions.
- Debt / Income Funds
These Funds invest predominantly in high-rated fixed-income-bearing instruments like bonds, debentures, government securities, commercial paper and other money market instruments. They are best suited for the medium to long term investors who are averse to risk and seek capital preservation. They provide regular income and safety to the investor.
- Liquid Funds / Money Market Funds
These funds invest in highly liquid money market instruments. The period of investment could be as short as a day. They provide easy liquidity. They have emerged as an alternative for savings and short-term fixed deposit accounts with comparatively higher returns. These funds are ideal for Corporates, institutional investors and business houses who invest their funds for very short periods.
- Gilt Funds
These funds invest in Central and State Government securities. Since they are Government backed bonds they give a secured return and also ensure safety of the principal amount. They are best suited for the medium to long-term investors who are averse to risk.
- Balanced Funds
These funds invest both in equity shares and fixed-income-bearing instruments (debt) in prescribed proportion. They provide a steady return and reduce the volatility of the fund while providing some upside for capital appreciation. They are ideal for medium- to long-term investors willing to take moderate risks.
10.What are open-ended and closed-ended mutual funds?
In an open-ended mutual fund there are no limits on the total size of the corpus. Investors are permitted to enter and exit the open-ended mutual fund at any point of time at a price that is linked to the net asset value (NAV). In case of closed-ended funds, the total size of the corpus is limited by the size of the initial offer.
11.What is NAV?
NAV is the net asset value of the fund. In simpler words it reflects whatthe unit held by an investor is worth at current market prices.
12.How much return can I expect by investing in mutual funds?
Investors need to be clear that mutual funds are essentially medium to long term investments. Hence, short-term abnormal profits will not be sustainable in the long run. But in the medium to long run the mutual funds tend to outperform most other avenues of investments at the same time avoiding the risk of direct investment accompanied with professional fund management.
13.What are the types of returns one can expect from a Mutual Fund?
Mutual Funds give returns in two ways – Capital Appreciation or Dividend Distribution.
Capital Appreciation: An increase in the value of the units of the fund is known as capital appreciation. As the value of individual securities in the fund increases, the fund`s unit price increases. An investor can book a profit by selling the units at prices higher than the price at which he bought the units.
Dividend Distribution: The profit earned by the fund is distributed among unit holders in the form of dividends. Dividend distribution again is of two types. It can either be re-invested in the fund or can be on paid to the investor.
14.What are the differences between close-ended mutual funds and ETFs?
Though Close-Ended Mutual Funds are listed on the exchange they have a limited number of shares and trade at substantial premiums or more often at discounts to the actual NAV of the scheme. Also, they lack the transparency, as one does not know the constitution and value of the underlying portfolio on a daily basis. In ETFs, the numbers of units issued are not limited and can be created/ redeemed throughout the day. ETFs rely on market makers and arbitrageurs to maintain liquidity so as to keep the price in line with the actual NAV.
15.Can an investor redeem part of the units?
Yes. One can redeem part units also.[/vc_column_text][/vc_tta_section][vc_tta_section title=”Learn more about Bonds & Corporate FD’S ” tab_id=”1501506450078-2b04f462-08d5″][vc_column_text]
1.What are securities?
Securities are financial instruments that represent a creditor relationship with a corporation or government. Generally, they represent agreement to receive a certain amount depending on the terms contained within the agreement. It represents a promise to pay bondholders a fixed sum of money (called the bond’s principal, or par or face value) at a future maturity date, along with periodic payments of interest (called coupons).
2.What are fixed income securities?
Fixed income securities are investment where the cash flows are according to a predetermined amount of interest, paid on a fixed schedule. Popularly known as Debt instrument.
3.What are the different types of fixed income securities?
The different types of fixed income securities include government securities, corporate bonds, Treasury Bills, Commercial Paper, Strips etc.
4.What are Corporate Bonds?
In broader terms Corporate bonds are fixed income securities issued by corporates i.e. entities other than Government.
5.What are the key components of corporate bonds?
There are many components of corporate bonds. Major components are given below Issue Price is the price at which the Corporate Bonds are issued to the investors. Issue price is mostly same as Face Value in case of coupon bearing bond. In case of non-coupon bearing bond (zero coupon bond), security is generally issued at discount. Face Value (FV) is also known as the par value or principal value. Coupon (interest) is calculated on the face value of bond. FV is the price of the bond, which is agreed by the issuer to pay to the investor, excluding the interest amount, on the maturity date. Sometime issuer can pay premium above the face value at the time of maturity. Coupon / Interest is the cash flow that are offered by a particular security at fixed intervals / predefined dates. The coupon expressed as a percentage of the face value of the security gives the coupon rate. Coupon Frequency means how regularly an issuer pays the coupon to holder. Bonds pay interest monthly, quarterly, semi-annually or annually. Maturity date is a date in the future on which the investor’s principal will be repaid. From that date, the security ceases to exist. Call / Put option date is the Date on which issuer or investor can exercise their rights to redeem the security. Maturity / Redemption Value is the amount paid by issuer other than coupon payment is called redemption value. If the redemption proceeds are more than the face value of the bond/debentures, the debentures are redeemed at a premium. If one gets less than the face value, then they are redeemed at a discount and if one gets the same as their face value, then they are redeemed at par. Example:- E.g.:- Security with FV of Rs.1000/- issued on April 01, 2011, for a period of 10 year at Rs. 1000/- , Coupon of 12% p.a. is paid every 6 month on April & October 01, 2011. Issue price = Rs.1000/- Face value = Rs.1000/- Coupon = 12% Coupon Frequency = Half yearly Maturity Date = April 01, 2021 Put Option =Not applicable Call option =Not applicable Redemption Value = Rs.1000/-
6.Why should one invest in corporate bonds?
1) High return – Compare to Government securities and Bank Deposits
2) Low risk – Compare to Equity
3) Fixed and Regular Income
4) Flexibility as various types of bonds available
5) Tradability
6) Capital appreciation
7.How the corporate bonds are issued in India?
Corporate bonds can be issued in two ways: Public issue in public issue, corporations issue bonds to the market as a whole. Institutions as well as retail investors can participate in this issue. The cost of borrowing is little high in case of public issue. Private placement in private placement corporate, generally park the bond issuance with few institutions. In India, more than 90% of the corporate bonds are issued through private placement. It is an easiest and cheapest way of borrowing corporate bonds.
8.Who are the major issuers of corporate bonds in India?
Public sector units, Banks, corporates, Financial Institutions are major issuer of corporate bonds
9.Where are the corporate bonds listed?
In NSE, the private placement securities are listed and traded in WDM segment of the Exchange. Public issues are listed and traded in CM segment of the Exchange
10.What are the factors investors should keep in mind while trading / investing in Corporate Bonds?
Record date and Ex-date for interest payment: – Record date is the date on which all the bond holders registered in the security till end of the date will be eligible for the interest payment for that period. The issuer sets record date for interest payment. Based on the record date, exchange sets Ex-date for interest payment. The trade take place from ex-date is not eligible for interest payment for that period. Trades take place after Ex-date till IP date, is at Ex-interest price i.e. price excluding interest. In such case, accrued interest will be zero. Credit rating: – plays an important role in the trading of the bonds as the highly rated bonds are more liquid in comparison to the bonds with the low rating. Interest rate condition: – If interest rates rise the price of the bonds will fall. Reinvestment of coupon: – In case of corporate bond investor often receives cash flow at a regular interval. To get the desired yield it is required to get opportunity for investing such inflows. Taxation: – Tax applicable on interest received. No STT is applicable on corporate bond trading. Capital gain tax, short term as well as long term, is applicable. Liquidity: – Currently corporate bond market is not liquid.
11.What are the various kinds of debt instruments available in the Corporate Debt Market?
The following are some of the different types of corporate debt securities issued:
- Non-Convertible Debentures
- Partly-Convertible Debentures/Fully-Convertible Debentures (convertible in to Equity Shares)
- Secured Premium Notes
- Debentures with Warrants
- Deep Discount Bond
- PSU Bonds/Tax-Free Bonds
[/vc_column_text][/vc_tta_section][vc_tta_section title=”Learn more about Portfolio Management Services ( PMS)” tab_id=”1501506523326-866fd39e-8735″][vc_column_text]1.What is Portfolio Management Services (PMS)?
Portfolio Management Service is a tailor made professional service offered to cater the investments objective of different investor classes. The Investment solutions provided by PMS cater to a niche segment of clients. The clients can be Individuals or Institutions entities with high net worth. In simple words, a portfolio management service provides professional management of your investments to create wealth.
2.Why Portfolio Management Services (PMS)?
Advantage of equities as an asset class:
- Solutions customised to needs of HNIs
- Personalised attention
- Portfolio Managers take buy / sell decisions on behalf of, but in consultation with a client
- Portfolio Managers regularly interact with clients to update them on portfolio strategy, performance and market outlook
3.Who can sign up for PMS?
The following investors are eligible to invest through PMS:
- Resident Individuals
- Hindu Undivided Families (HUF)
- Body Corporates (Private / Public)
- Registered Trusts
- Non-Resident Indians (NRI)*
- Partnership Firms or any other eligible investor
4.Who is an ideal PMS investor?
The investment solutions provided by PMS cater to a niche segment of clients. The clients can be individuals or institutions with a high net worth.The offerings are usually ideal for investors who are:
- Looking to invest in asset classes like equity, fixed income, structured products etc.
- Desire personalised investment solutions
- Desire long-term wealth creation
- Appreciate a high level of service
5.Does one necessarily have to invest in cash to open a PMS account?
Apart from cash, the client can also handover existing portfolios of stocks, bonds or mutual funds to a Portfolio Manager that could be revamped to suit his profile. However, the Portfolio Manager may at his own sole discretion sell the said existing securities in favour of fresh investments.
6.What is the tax treatment in PMS investment?
The tax liability of a PMS investor would remain the same as if the investor is accessing the capital market directly. However, the investor should consult his / her tax advisor for the same. The Portfolio Manager ideally provides audited statement of accounts at the end of the financial year to aid the investor in assessing his / her tax liabilities.
7.What can you expect from PMS?
When one has entrusted his money to a PMS, one can expect:
Better hand holding from his portfolio manager than he has been accustomed to from his mutual fund. One can also expect to interact with the portfolio manager to discuss any concerns that he might have. To be updated on any major changes in asset allocation or in the Investment Philosophy relating to his portfolio. All administrative matters, including operating a bank account and dealing with settlement and depository transactions, will be handled by the Portfolio Manager.
On handing over one’s money, he will receive a user ID and password from the Portfolio Manager, which will grant him online access to his portfolio details. He can use these to check back on his portfolio as often as he likes. Keeping track of capital gains (and losses) for the taxman can be a depressing chore, when one has furiously churned his investments throughout the year. Opting for PMS will free him of this chore, as a detailed statement of the transactions on his portfolio for tax purposes comes as a part of the package.
8.What one pays for PMS?
Most Portfolio Managers allow one to choose between a fixed and a performance-linked management fee or a combination.
Fixed Fee: If one opts for the fixed fee, he may pay between 2.50% to 3.50% p.a. of portfolio value; this is usually calculated on a weighted average basis. This fee is apart from the actual expenses like custodian expenses, audit fee, brokerage on transactions etc., which may be charged on actuals.
Performance linked Fee Option: In the performance linked fee option, there is a fixed fee of around 1.5% to 2% along with a percentage of your profit – usually 15% to 20% – earned over and above a threshold level, which may range between 8% and 10%. Apart from management fees, separate charges will be levied towards brokerage, custodial services and towards meeting tax payments. When one opts for a performance-based fee, the profits are reckoned usually on the basis of ‘high watermarking’.
9.Are there risks associated with PMS investments?
Yes. All investments involve a certain amount of risk, including the possible erosion of the principal amount invested, which varies depending on the security selected. For example, investments in small and mid-sized companies tend to involve more risk than investments in larger companies.
10.Do I have to keep a track on investments and take part in investment decision making process?
Indian Wealth Management Company Ltd provides discretionary Portfolio Management Services wherein the portfolio manager manages your portfolio without having to bother you with the day to day decisions. The portfolio manager takes all the investment decisions on your behalf.However, we do a comprehensive reporting to maintain complete transparency in managing your portfolio. You will receive regular updates and a detailed report on your portfolio, allowing you to track its activity and performance.
11.Can a NRI avail of the Portfolio Management Service?
The Portfolio Management Services is open for all Indian nationals, resident or otherwise. NRIs will have to open a PIS Account as required under RBI guideline sin order to invest in the PMS scheme.
12.Are there risks associated with PMS investments?
Yes. All investments involve a certain amount of risk, including the possible erosion of the principal amount invested, which varies depending on the security selected. For example, investments in small and mid-sized companies tend to involve more risk than investments in larger companies[/vc_column_text][/vc_tta_section][vc_tta_section title=”Learn more Corporate & Retail Loans” tab_id=”1502432339897-75b0c7eb-9a9b”][vc_column_text]1.How will my Home Loan Eligibility be decided?
It will be assessed based on your age, qualification, income, number of dependents, spouse income, stability and continuity of your occupation, assets, liability base and your savings history and based on the value of the property proposed to be purchased.
2.What is the maximum Home Loan Amount I can get?
Home Loans are available from Rs5 Lakh to Rs10 cr.
3.What is the maximum Loan tenure that I can have under Home Loan?
Home Loans have maximum repayment tenure of up to 25 years. Actual tenure of loan is subjected to bank’s discretion.
4.Can I get the Home Loan eligibility without selecting the property?
Yes. It can be extended in-principle sanction based on your repayment capacity. Accordingly based on the loan amount sanctioned, you may search the property. For final sanction, property identified for the purpose should meet our criteria.
5.Can I get a tax benefit on the Home Loan?
Yes. As per Income tax rule Resident Indians are eligible for certain tax benefits on principal and interest components of a loan. Interest repayment of Rs.1,50,000/- p.a. and Principle repayment up to Rs100000 p.a. (u/s 80 C) are deductible under income tax.
6.What security will I have to provide?
The security for the loan is a first mortgage of the property proposed to be financed with the proceeds of home loans by way of equitable mortgage by deposit of title deeds with memorandum of entry. The Bank will also decide the requirement of additional security if required for the process of loan application.
7.What is the EMI and how is the EMI calculated on my Home Loan?
EMI is equated into monthly installment. This comprises of Principal as well interest component. Interest charged under Home Loan is on reducing Balance.
8.For what purpose can you avail of Loan against Property?
You can avail of Loan against Property against Residential & Commercial Property for either your personal or business activities other than speculative or non-prohibitive activities.
9.Who can be co-applicant to the loan?
You can include your spouse as a co-applicant for the Loan. His / her income can be added to enhance the loan amount. However all co-owners of the property should necessarily be the co-applicant.
10.What qualifies as a commercial real estate loan?
A commercial real estate loan is a loan that is secured by commercial real estate (office, retail, apartments, etc.)
11.How much money can I borrow?
This depends on many variables. Owner occupied properties borrowing ability will be heavily depend on the business’ cash-flow and ability to repay debt.
12.How long does it take to get a commercial mortgage?
It depends on the product type.
13.What are the general requirements?
The optimum requirements for commercial real estate are as follows; Borrower’s Net Worth (personal and business) aka Global Net Worth should be equal or higher than the loan amount requested, Borrower should have post-closing liquidity equal or superior to 6 months to service debt or 10% of the loan amount. Prior ownership experience is highly desirable. It is important to note that these should be taken only as general guidelines as these can vary from lender to lender
14.What information is needed to begin the loan process?
The easiest way to begin the process is to fill out our online application or call us. Generally speaking for investment properties we will need the property’s (2-3 yrs) operating statements and year to date, rent roll, current pictures and a personal financial statement (PFS) for all Principals. For owner occupied properties you should have personal financial statements (PFS), your last 3 years corporate and personal tax returns and current pictures.[/vc_column_text][/vc_tta_section][vc_tta_section title=”Learn more about Real Estate Services” tab_id=”1502432884528-c7d631b8-4048″][vc_column_text]1.What are the documents you need to check before buying?
- Check for proper conveyance of Title in favour of the builder.
- Check the license/development right/approvals of the builder.
- Check clear and marketable title of the project.
- Ensure execution of proper Allotment Letter/Sale Agreements on your payments.
- Ensure whether reputed financial companies approve the project. This will help you in getting financial loans.
- Check the tentative layout/building plan and verify the plinth area of the apartment. It is advisable to check the carpet area of the apartment and find out if the difference between plinth area and carpet area is reasonable.
- Ask for Occupation/Completion Certificate.
- Ensure the Conveyance Deed is registered after the entire payment has been made.
- For buying a property you need to check Deed of Conveyance, Mutation Certificate (for complete property), Land Registration Status, Sanction Plan, Search Report and Payment Schedule (for under construction). It is a must that you go through all the documents relating to the origin of the property, chain of Title, Occupancy Certificate, sanctions from various authorities dealing with building plans, fire safety and Completion Certificate.
- For re-sale property, check demand notice relating to renovation, tax dues and latest receipts of payments made towards various out-goings such as water, electricity and ground rent
2.What is meant by Carpet Area, Built-Up Area & Super Built-Up Area?
Carpet area is defined as the precise area within the walls of your home. If you had to lay out a wall-to-wall carpet in your entire home, the area covered would be the carpet area. Built-up area is inclusive of not just the carpet area but also the area being occupied by the walls of your home. Super built-up area takes into account all the area under the common spaces which is the apartment’s proportionate share of the lobby, staircase, elevator and the corridor outside the apartment
3.What constitutes conclusion of sale of a property?
The housing society share certificate and the sale/purchase deed of the property are the main documents required to sell a residential property. If the property has been sold and bought multiple times, a copy of the previous deeds may be required to prove the authenticity of the deal. Other than these, copies of Stamp Duty and registered house documents will also be needed. In case of property being mortgaged, these papers will be held by the bank and you can use a photocopy of the required documents to initiate a deal. Depending on the kind of property and ownership, some more documents, such as a No-Objection Certificate from the housing society and a documented consent in case of jointly owned property, may be required.
4.What is a Sale Deed?
A Sale Deed is a document prepared on the basis of previous ownership document for the transfer of property from seller to buyer, providing the buyer the absolute and undisputed ownership of property.
5.What are the things to actually look for when zeroing in on a house?
Budget, location, type of property, objective of buying and choice of property are the determining factors for purchase of property from an end user’s perspective. Real estate values are governed by demand and supply. This may vary on a project to project basis. The projects which see good demand normally do not see a price correction.
6.What is Stamp Duty and who is liable to pay the Stamp Duty, the purchaser or the Developer?
Stamp Duty is supposed to be paid every time there is a transfer of ownership. It is calculated on the basis of the total value of your property. The amount to be paid varies from city to city.
7.What is the difference between a builder floor apartment and a multi-storey apartment?
A single floor apartment is one where the builder buys a piece of land, often old plots which are up for redevelopment, constructs flats on each floor according to the permissible Floor Area Ratio (FAR) and building byelaws and sells them as independent units within the same building. The land belongs proportionately to all the buyers of single floors. Since there are smaller numbers of units than in a multi-story apartment, these lack economies of scale and so have fewer common facilities such as maintenance and back-ups compared to larger multi-storey apartments. But these are newer apartment units in downtown or preferred areas and come at a price lower than multi-storey units.
A multi-storey remains the most preferred housing units in metros and large cities today. It is a cluster of apartments in a high-rise building developed in a plot with all amenities available within a gated community. These units can be aggregated and constructed by developers or in the cooperative mode as Cooperative Group Housing Societies (CGHS).These need good common facilities management to take care of aggregating services and providing them to individual units for a fee. This fee is levied as monthly maintenance charges. They cover water and power supply, including back-ups, lift and common area maintenance and landscaping. Many developments also provide plumbing and electrical services for a fee.
[/vc_column_text][/vc_tta_section][vc_tta_section title=”Learn more about Fund Raising for Start Ups ” tab_id=”1502432906931-2bd493ef-3124″][vc_column_text]1.How can we get funding?
Bootstrapping- Self-funding, also known as bootstrapping, is an effective way of start-up financing, especially when you are just starting your business. First-time entrepreneurs often have trouble getting funding without first showing some traction and a plan for potential success. You can invest from your own savings or can get your family and friends to contribute. This will be easy to raise due to less formalities/compliances, plus less costs of raising. In most situations, family and friends are flexible with the interest rate.Self-funding or bootstrapping should be considered as a first funding option because of its advantages. When you have your own money, you are tied to business. On a later stage, investors consider this as a good point. But this is suitable only if the initial requirement is small. Some businesses need money right from the day-1 and for such businesses, bootstrapping may not be a good option.
Crowdfunding- Crowdfunding is one of the newer ways of funding a startup that has been gaining lot of popularity lately. It’s like taking a loan, pre-order, contribution or investments from more than one person at the same time.
This is how crowdfunding works: An entrepreneur will put up a detailed description of his business on a crowdfunding platform. He will mention the goals of his business, plans for making a profit, how much funding he needs and for what reasons, etc. and then consumers can read about the business and give money if they like the idea. Those giving money will make online pledges with the promise of pre-buying the product or giving a donation. Anyone can contribute money toward helping a business that they really believe in.
Angel Investment- Get Angel Investment In Your Start-up:Angel investors are individuals with surplus cash and a keen interest to invest in upcoming startups. They also work in groups of networks to collectively screen the proposals before investing. They can also offer mentoring or advice alongside capital.Angel investors have helped to start up many prominent companies, including Google, Yahoo and Alibaba. This alternative form of investing generally occurs in a company’s early stages of growth, with investors expecting a upto 30% equity. They prefer to take more risks in investment for higher returns.
Venture Capital-This is where you make the big bets. Venture capitals are professionally managed funds who invest in companies that have huge potential. They usually invest in a business against equity and exit when there is an IPO or an acquisition. VCs provide expertise, mentorship and acts as a litmus test of where the organisation is going, evaluating the business from the sustainability and scalability point of view. A venture capital investment may be appropriate for small businesses that are beyond the start-up phase and already generating revenues. Fast-growth companies like Flipkart, Uber, etc with an exit strategy already in place can gain up to tens of millions of dollars that can be used to invest, network and grow their company quickly. However, there are a few downsides to Venture Capitalists as a funding option. VCs have a short leash when it comes to company loyalty and often look to recover their investment within a three- to five-year time window. If you have a product that is taking longer than that to get to market, then venture-capital investors may not be very interested in you. They typically look for larger opportunities that are a little bit more stable, companies having a strong team of people and a good traction. You also have to be flexible with your business and sometimes give up a little bit more control, so if you’re not interested in too much mentorship or compromise, this might not be your best option.
Business Incubators and Accelerators- Early stage businesses can consider Incubator and Accelerator programs as a funding option. Found in almost every major city, these programs assist hundreds of start-up businesses every year. Though used interchangeably, there are few fundamental differences between the two terms. Incubators are like a parent to a child, who nurture the business providing shelter tools and training and network to a business. Accelerators so more or less the same thing, but an incubator helps/assists/nurtures a business to walk, while accelerator helps to run/take a giant leap. These programs normally run for 4-8 months and require time commitment from the business owners. You will also be able to make good connections with mentors, investors and other fellow start-ups using this platform.
Bank Loans- Normally, banks is the first place that entrepreneurs go when thinking about funding. The bank provides two kinds of financing for businesses. One is working capital loan, and other is funding. Working Capital loan is the loan required to run one complete cycle of revenue generating operations, and the limit is usually decided by hypothecating stocks and debtors. Funding from bank would involve the usual process of sharing the business plan and the valuation details, along with the project report, based on which the loan is sanctioned.Almost every bank in India offers SME finance through various programs. For instance, leading Indian banks – Bank Of Baroda, HDFC, ICICI and Axis banks have more than 7-8 different options to offer collateral free business loans. Check out the respective bank sites for more details. Learn how to get working capital loans in India.
Microfinance Providers or NBFCs- What do you do when you can’t qualify for a bank loan? There is still an option. Microfinance is basically access of financial services to those who would not have access to conventional banking services. It is increasingly becoming popular for those whose requirements are limited and credit ratings not favoured by bank.
Similarly, NBFCs are Non-Banking Financial Corporations are corporations that provide Banking services without meeting legal requirement/definition of a bank.
Govt. Programs that offer start-up capital- The Government of India has launched 10,000 Crore Start-up Fund in Union budget 2014-15 to improve start-up ecosystem in India. In order to boost innovative product companies, Government has launched ‘Bank of Ideas and Innovations’ program. Government backed ‘Pradhan Mantri Micro Units Development and Refinance Agency Limited (MUDRA)‘ starts with an initial corpus of Rs. 20,000 crore to extend benefits to around 10 lakhs SMEs. You are supposed to submit your business plan and once approved, the loan gets sanctioned. You get a MUDRA Card, which is like a credit card, which you can use to purchase raw materials, other expenses etc. Shishu, Kishor and Tarun are three categories of loans available under the promising scheme. Also, different states have come up different programs like Kerala State Self Entrepreneur Development Mission (KSSEDM), Maharashtra Centre for Entrepreneurship Development, Rajasthan Startup Fest, etc to encourage small businesses. SIDBI – Small Industries Development Bank Of India also offer business loans to MSME sector. In US, there is a small business lending fund and dedicated portal for Government grants available for local businesses. If you comply with the eligibility criteria, Government grants as a funding option could be one of the best. You just need to make yourself aware of the various Government initiatives.
2.Other than money, what else is included?
Alongside our capital, Founders connect with Advisors, Investors, and Indian Wealth Management Founder, through our lifelong Indian Wealth Management Platform, providing them with access to our Network, Learning and Capital. This includes taking part in Indian Wealth Management Operator and Investor Days, and Office Hours.
3.Do we need to write a business plan?
No, but be sure to fill in the application form thoroughly and provide a demo if possible.
4.We are afraid that you won’t protect our intellectual property. How do we know you won’t steal our idea? Will you sign an NDA?
No, we won’t sign an NDA and no Investors would at this stage but rest assured as we do treat application data as confidential information. Please keep in mind that every year thousands of startups apply for Indian Wealth management investment and many of them include similar ideas. So far we have invested in 240 companies and hope our past investments and reputation will make you feel reassured.
5.We’ve already been working on our startup for a while. Is Indian Wealth management right for us?
Yes, all the more reason. We have invested in a lot of startups in a similar situation, and have terms that are very friendly to previous Investors.
6.We’ve already taken some funding. Can we still apply?
Definitely. We find that start-ups who have already raised some funding are very focused on what makes a difference and take the best advantage of the platform and benefits we offer.
7.We don’t need money. Should we still apply?
All the more reason. If you have the funding and are considering Indian Wealth management, you recognise that the Network and continuous Learning are the most important value someone can bring to your business.
8.Does Indian Wealth management invest in a single Founder start-up?
Yes, we have invested in single Founders in the past. However, the odds of being accepted are lower. A start-up is a lot of work for one person, therefore we advise you to seek Co-Founders who balance your skillset.
9.Will Indian Wealth management fund my Start-up if I have a great Idea but am not technical? Can you help me find developers?
Your chances will much higher if you have a technical partner who shares your commitment and vision. Teams thrown together for the purpose of starting a start-up usually fall apart under stress.
[/vc_column_text][/vc_tta_section][vc_tta_section title=”Learn more about Insurance Services” tab_id=”1502432908044-8c3f8881-8b97″][vc_column_text]1.What is the importance of Life Insurance?
Life Insurance is important in many ways. They are:
- It allows systematic long term savings which are low in nature but grow compoundingly
- It can be used for transferring wealth though estate planning
- It provides adequate cover to key executives of the business, for its continuity
- It provides short-term death benefit
- It substitutes loss of income source in case of death
- It offers supplement retirement income in case there is no other retirement coverage
2.How to choose a life insurance plan?
There are various types of insurance plans, which one can take depending on the life cycle at which a person is. The various forms for life insurance plans are Term Insurance, Whole life plan, Universal life plans, and Variable Life Plans.
3.What is ECS and how do you avail of this service?
ECS (Electronic Clearing Service) is an easy way to pay your premiums, electronically. It will relieve you from remembering premium payment due dates through the entire term of the policy and from periodically depositing cheques. It will also prevent a possible lapse of your policy due to non-payment of premiums.
To avail of this service you just have to send us the completed ECS mandate form along with a blank cheque duly cancelled. We will arrange to get the verification stamp and authorization from your bank on the mandate form.
4.What are the terms of reinstatement / revival of a policy?
The Policy can be revived within 36 months of its date of lapse, if:
- You give Us a written request to revive the Policy
- You have produced evidence of insurability acceptable to Us as per Our underwriting practices
- You pay Us all overdue ATPs and unpaid charges
5.Can I withdraw amounts from my policy fund?
You can withdraw amounts from your policy fund only after the completion of three policy years. If you are planning to withdraw before 5 years, please check the availability of your tax exemption under section 80C. You can withdraw up to a maximum of 50% of your fund value on your previous policy anniversary in case of Increasing Death Benefit (20% in Level Death Benefit). If the request is received before the cut-off time at the branch office, same day unit value will be applicable. Two withdrawals in the policy year are free and processing fees of Rs. 500.00 will be charged for any additional withdrawal.
6.What is OPPB and when can I exercise this option?
OPPB is the Option to Participate in Progressive Bonuses. Through OPPB, the insurance coverage can be enhanced from time to time by paying one-time premiums. This option can be added anytime in a Whole Life Par Plan, subject to underwriting guidelines. The OPPB option lapses in case the same is not exercised once in two years.
7.Is there any Tax Benefit on the premium I pay for my life insurance policy?
Deduction is available under Section 80C of Income Tax Act, 1961 for the premium paid on life insurance policies with a maximum annual ceiling of Rs. 1,50,000, irrespective of the Gross total income (subject to fulfillment of certain conditions).
8.If I stop paying premiums on my life insurance or pension policies, can I claim Tax Benefits?
If you stop premium payments of your policy, it amounts to discontinuation of the policy and disqualifies for Income Tax benefits.
9.Is insurance cover a part of financial planning?
Insurance planning is an integral part of financial planning. An insurance plan takes care of the unforeseeable demands on your finances. For instance, an unfortunate illness requiring a surgery can be covered under a medical insurance plan and you need not dig into your savings and other investments to pay for it. In effect, insurance helps to keep your financial plan on track
10.What kind of risks can I cover under insurance plans?
Most risks to your life and property can be covered under insurance plans. Some of the common insurance plans are:
Unit Linked Insurance Plans
Term / Term with Return of Premium Plans
Health Insurance
Personal Accident Insurance
Insurance cover for your Home / Car
Insurance cover to protect your family from liabilities
Travel insurance
12.What are the factors that affect Health Insurance premium?
Sum Insured: This is one of the basic parameters on which your health insurance depends.
Age: The older you grow, the more you are prone to illnesses. Therefore, your health insurance premium increases with age.
Type of cover: Your health insurance premium also depends on the type of cover you choose. The premium you will be charged for an individual health insurance will be different from that for family floater health insurance.
Number of insured members: Your health insurance premium will vary depending on the number of family members you are covering.
Medical history: If you have a clean medical history and are fit, your premium will be low. However, if you have pre-existing medical condition, or any other medical history, your premium may go up.
Optional Covers: If you choose to include some add-on covers in your health insurance policy, your premium amount will increase accordingly.
Claims in your previous policy: Have you had claims in your previous year? If no, you can earn a No claim bonus discount on your health insurance premium.
13.What is covered under a health insurance policy?
Basic things a health insurance generally covers are:
- Inpatient hospitalization due to illness or accident which covers –
- Doctor’s / Surgeon’s fees
- Drugs / Medicines
- Nursing care
- Pre and post hospitalization expenses
- Day care procedures not requiring hospitalization
- Domiciliary treatment i.e. medical treatment taken at home subject to insurer’s approval
- Ambulance expenses
14.What is not covered under a health insurance policy?
Common exclusions are –
- Spectacles, Contact lenses, Hearing aid
- Pre-existing diseases for a specific time period
- Obesity related
- Cosmetic surgery
- Outpatient treatment
- Non Accident related dental treatment
- Medical conditions arising from AIDS/HIV
- Psychiatric disorders
- Medical conditions arising due to drug abuse/alcohol intoxication
- Waiting periods for specific surgeries and medical treatments
[/vc_column_text][/vc_tta_section][vc_tta_section title=”Learn more about Online Investments” tab_id=”1502432912845-ce401e35-1d0d”][vc_column_text]1.What is online trading?
Generally, online trading refers to buying and selling securities via the Internet or other electronic means such as wireless access, touch-tone telephones, and other new technologies. With online trading, in most cases customers access a brokerage firm’s Web Site through their regular Internet Service Provider. Once there, customers may consult information provided on the Web Site and log into their accounts to place orders and monitor account activity.
2.Aren’t online investing and day trading the same thing?
No. Online investing refers to the method of placing orders via the Internet to buy and sell securities as compared to the method of placing orders by speaking directly with a broker by telephone. Day trading refers to a trading strategy where an individual buys and sells the same security in a short period of time (often the same day) in an attempt to profit from small movements in the price of the security.
3.Can I actually open an account online?
Yes, you can open an account with many brokerage firms online; however, in most instances your account will not be active until the brokerage firm receives and processes a signed application from you. Note that some firms allow for the use of electronic signatures, while others will require a manually (hand written) signed document. Some firms will gather basic information for your account over their Web Sites, then mail you the pre-completed application for you to sign and return. Please make sure to check with your brokerage firm for information on specific guidelines.
4.Is there still a brokerage firm involved or do I really bypass the broker completely?
All trades involve a brokerage firm even if a stockbroker is not used to help with the trade. Although customers may enter orders for trades via the Internet, customers do not have direct access to the securities markets and therefore must use a brokerage firm in order to execute their trades. Customers should also remember to do their homework where their investments are concerned.
5.What kinds of securities can I buy online?
You can buy almost any type of stock, bond, or mutual fund online.
6.What’s the difference between a market order and limit order? Is one better than the other?
With a market order the customer instructs his or her brokerage firm to buy or sell a stock at whatever the price is when the trade is executed, presumably as soon as possible. If the price of the stock is moving quickly and there is a delay in the transmission of the order, then the price at which the customer purchases or sells the stock may be very different than what the customer expected when the order was placed. With a limit order, the customer specifies the price at which he or she is willing to buy or sell. Limit orders can help protect customers from rapid price changes when markets are moving fast. However, there is the risk that the limit order will not be executed. Also note that limit orders usually cost a bit more than market orders.
7.How do I know my brokerage firm received my order?
High Internet traffic, market volume, and other systems issues may affect your ability to access your account or transmit your orders and may delay receipt of your order by the brokerage firm. Check with your particular brokerage firm on its notification procedures. And note that notification that the order was received does not mean that the order was executed.
8.Is my order executed immediately?
Orders entered electronically are usually executed quickly; however, there is no assurance that this will always occur. Investors should be aware that high trading volumes can cause delays in executions. Market volatility and delays in executions due to trading volume can result in trade executions at prices significantly different from the quoted price of the security at the time the order was entered. Also, different firms offer different levels of access and system sophistication. The speed of the Internet Service Provider used by an investor may also have an effect on order transmittal and execution. Timing in execution of orders may also be impacted by market volume, order queues at market centres, possible delays in order transmissions by brokers, and other systems issues.[/vc_column_text][/vc_tta_section][/vc_tta_accordion][/vc_column][/vc_row]