We have a physical presence in Chennai.We have the expertise and competence to service clients in India and abroad. Our clients are based out of the USA, Canada, Netherlands, Germany, UAE, Qatar, Oman,Hong Kong, China, Singapore, Malaysia, Japan, Mauritius, and Australia. We use technology to enable seamless client service.
When is a good time to invest?
It’s always a good time to invest. Market cycles offer investment opportunities in different assets at different times. Ideally, the best time to invest in equity is when the markets are at their low points. But it is next to impossible to perfectly time the market and to capture the exact bottom. Instead it is always better to make smart investment in promising securities at attractive valuations.
How do you pick funds?
We pick funds to invest into based on the prevailing market situation, your risk profile, financial goals and the time horizon for those goals. Our main objective as your wealth creation partners is to manage risk through mutual fund investments.
How do I track my investments?
We have tied up with different software providers which give our clients access to their portfolio and online transaction. Our current online investment platform provider is Investwell.
What are your charges? How do I begin my journey with you?
We do not charge investors any fee. We are remunerated by the asset management companies through trail commissions. Click here to view the commissions we receive. To avail our services, you would need to share your KYC details (PAN Card and Address Proof), supporting documents (Passport photo, cheque leaf), and complete a risk profiling test.
What is the minimum investment?
The minimum investment to start off investing with ithoughtwealth is Rs. 10,000 through Systematic Investment Plans or Rs. 25,000 as a one-time investment. There is no upper limit to investments in this model. Incremental additions can be madein multiples of Rs. 1,000.
Will you inform me if there is an attractive opportunity?
We have a robust communication channel with clients. Our client service team will be available to respond to any queries and feedback and will alert you to investment opportunities. Over and above this, we have a WhatsApp channel that our clients can subscribe to. This channel is used to share insights, communication, and alerts with clients.
What is a Mutual Fund?
A mutual fund pools investors’ money and invests it in different types of securities as per the fund’s mandate and investment objective. A mutual fund can invest in different assets such as shares, bonds, NCDs, cash equivalents, gold, and real estate. Mutual funds are professionally managed.
Why should I invest in a Mutual Fund?
Mutual Funds are diversified portfolios of different securities. Equity Mutual Funds contain equity and equity related instruments. They are relatively safer compared to direct equities as mutual funds are inherently diversified. Equity exposure in any portfolio is needed to beat inflation in the long term. Mutual funds are also more liquid than their underlying stocks/bonds.
Would you suggest SIP or Lump sum? What difference does a step-up SIP make? How does it impact returns?
A SIP (Systematic Investment Plan) is an evergreen investment option. A SIP is a regular contribution made into a particular scheme. Typically, SIPs run on a monthly basis. A SIP helps average out cost and capture all market movements and can smoothen the investment journey during turbulent times. SIPs are a disciplined tool for long-term investments.
A lumpsum investment is a one-time investment into a particular scheme at a specific time. Lumpsum investments can be used when attractive market opportunities arise or in various tranches to further enhance the return generation potential of the investment. You could also make a lump sum investment whenever you have surplus liquidity. A lump sum investment can even be staggered (like a SIP) over a few weeks or months to take advantage of market opportunities.
Stepping up SIPs at intervals (every six months or every year) will make a huge difference in your long-term corpus as your investment compounds.
Can I pause a SIP?
SIPs can be stopped and then restarted whenever required. There is process time of 40 days to stop the SIP and 30 days to start SIP. There is no specific option to pause a SIP.
How do I transfer lumpsum?
Through Cheque or Online Transfer.
How do I increase/decrease SIP?
Changing a SIP can take 30-40 days. To decrease a SIP, we need provide Stop SIP form. A SIP increase can be done online and offline.
While investing in ELSS, is it better to do a lumpsum or a SIP?
ELSS has a 3-year lock in period. Doing a Lumpsum gives you the flexibility to redeem all your investments exactly after 3 years. With respect to the investor’s income flow a SIP may be the better option. SIPs also have the added benefit of rupee cost averaging.
How do I know if the portfolio is going in the right direction when the returns are low? Are we making good returns?
Short-term under performance is part of the investment journey. Returns usually follow with a lag and are not linear. This means performance on a month-to-month basis could vary but will move upwards in a 3 to 5 year horizon. Our intention is not to deliver the highest returns but to create a smooth investment experience with minimal risks.
We will always be available to discuss investment performance and the way forward. If you make 10% CAGR (after taxes) on 3 to 5 year horizon you’re on the right track.
When can I withdraw my investments?
Our investment strategies are constructed for the long-term. Ideally, investors should be willing to follow a strategy for at least 3 to 5 years to reap the benefits. To ensure that the investment process stays smooth – we encourage investors to start with an emergency fund and then move on to long-term investments. [Know More About the Marathon SIP]
Withdrawing investments is warranted when:
- A financial goal needs to be fulfilled.
- An investment strategy is near its full potential and profits can be booked.
- A particular strategy becomes risky or may not deliver the expected performance
How do exit loads work?
An exit load refers to the fee that the Asset Management Company charges investors at the time of exiting or redeeming their fund units. Usually these charges are for redemption that take place within a year from the date of investment. For example, investments were made on 1st Jan’19, any redemption that take place between 1st Jan’19 – 1st Jan’20 will be charged the specified exit load. Some funds do not have an exit load.
If I need to withdraw after one year, what are the implications?
The benefits of compounding accumulate over time. One year is too short a period to get your money to work for you. If the investment horizon is one year, it makes sense to pick a high-quality short-term debt fund without an exit load. If an emergency arises and you need to withdraw money within or just after one year, you may be subject to an exit load and short-term/long-term capital gains.
How long before money reaches me after redemption?
Liquid and debt funds are settled after 1 business day (T+1 Settlement). For equity, hybrid, and gold funds the settlement happens after 3 business days (T+3 Settlement).
How do STCG and LTCG work?
Short term capital gain tax (STCG) is charged on gains arising from sale of assets within 12 months (for equity) from date of investment and 36 months (for debt and gold). The STCG tax rate for equity is 15%, whereas for the other assets it is the slab rate of the individual.
LTCG is charged for investments if they are held for more than 12 months (equity) or 36 months (debt and gold). For equity the LTCG rate is 10% for gains above Rs. 1 Lakh. For debt and gold, it is 20% with indexation.
How do debt funds generate returns?
Debt funds invest in debt securities of corporates and the government. These bonds pay coupons (interest) and there is also scope for a Mark to Market gain. Mark to Market Gains can be made when the demand for these bonds increases or their credit ratings are upgraded.
How are debt funds different from FDs?
From taxation point of view FD interest if taxed at the marginal tax rate and a 10% TDS is deducted every year.Due to this you lose the compounding benefit on part of your interest income. Whereas for debt funds tax is paid only when profits are realized and not on accrued gains. Short Term gains are taxed at Marginal tax rate of the investor. Long-term Capital Gains are taxed at 20% with an indexation benefit. Indexation allows the investor to inflate his cost with the corresponding CII rate, thus reducing the taxable profit.