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In 1952 Harry Markowitz came up with a mathematical framework called Modern Portfolio Theory, for which he later won the Nobel Prize. The TLDR: It tells you what percentage of your portfolio to allocate to each asset class to maximize your return for each given level of risk. We have used this theory as the foundation for our portfolio construction.
There are thousands of mutual funds yet 90% of managers don’t beat the market on a consistent basis. Our managers take away the headache of choosing for you by curating diversified portfolios tailored to your needs that provide superior risk-adjusted returns.
At Mintd, we rebalance your portfolio periodically to make sure it is suited market conditions at the time. ‘Rebalancing’ means selling some securities to buy others. We need the mandate to use the cash from the ‘sells’ to make the ‘buys’. We only rebalance your portfolio after your explicit approval.
As part of the onboarding process, we take a 1L mandate authorization from you. This is only so that we can rebalance your portfolio at a later stage. We don’t have any authority to debit you without your explicit approval for either an SIP or rebalance. The mandate is just a catch all that smoothens the rebalance process and makes it possible later
First, we use institutional grade security to ensure your data is always protected. Second, we never hold your money. It goes directly from your account to the mutual funds account. And third, our advisors have decades of experience managing billions of dollars.
When you invest in a mutual fund, the Asset Management Company (AMC) charges you an annual fee called a Total Expense Ratio (TER). The AMC then pays Mintd a part of that fee annually, for providing mutual fund distribution services. The TER on most of our portfolios is around 0.7% a year. So you pay Rs. 700 a year for a Rs. 1L portfolio, Mintd makes about 0,45% of that. So just Rs. 450 on a Rs. 1L portfolio.
Comparatively, most wealth managers charge up to 2.25% a year.
First, Mintd is a wealth manager not a transaction platform (like Zerodha or Groww). We provide services, which include - risk assessment, asset allocation (using Markowitz' theory), fund selection, monitoring and monthly reports, and periodic rebalancing of portfolios. We also provide one-on-one help on demand, and access to the investment team via WhatsApp.
For those services, we charge a fee. There are two ways one can charge a fee in a mutual fund wealth business:
1. Offer direct funds and charge the user a monthly subscription fee
2. Offer regular funds and the fee is paid to us via the AMC (asset management co), directly through the mutual fund returns
Either way our fee structure is ~0.5% p.a., which we could charge either as a subscription in option 1 or using regular funds in option 2. We have chosen the latter because it's administratively easier for the user.
So you pay a minimal fee of Rs. 500 on a Rs. 1L investment for the whole year via the regular funds.
1) I know that if profit is more than 1 lakh than 10% LTCG will applied. Is there similar thing for STCG or Debt Funds? - No. For debt funds if you sell within 3 years of holding you will be taxed at your income slab rate.
2) Are planning to introduce Index funds or Gold as well in portfolios? - All our equity funds are index funds. They are already in our portfolio. Index funds in the debt realm are rare, but the spread of returns in debt funds is also lower so most funds perform alike. At the moment we aren't planning on adding gold to our portfolios. We believe Indian portfolios are over-indexed to gold already and that it has been an unpredictable asset. So we avoid gold. Would you prefer if it were in your portfolio?
According to you what is the ideal SIP or lumpsum one should invest via Mintd wrt to expenses as well as profitability? Should it be only SIP or lumpsum Or combination of both? -SIP - this is done monthly. A good amount to target is 20% of your income every month into an SIP. Lumpsum - this is done on an ad hoc basis if you have funds lying around. Anything that you are 'saving' that isn't set aside for an emergency fund or a short term (<2yr) major non-discretionary spending need should be invested. This post does a good job of deciding how much to invest in lumpsum: https://www.mintd.in/post/how-much-should-i-invest-and-when
Our advisors took three steps. First, they picked which asset classes to invest in. Next, they determined which funds best represent those asset classes. And last, they used Nobel Prize-winning research called Modern Portfolio Theory to help determine how much to allocate to each fund.
It’s your money. You can withdraw it any time. We make it easy.
We never hold your money or investments. The funds are always in your name with each asset manager, we merely facilitate the transaction. So IF anything were to happen to us you could always:
a. Go to CAMS portal online and withdraw the amount
b. Go to the AMC website and login using your PAN and withdraw the amount
c. Call your AMC customer care who will send you a link to withdraw the amount
Either ways we will facilitate this process for each of our customers.
We’ve partnered with Razorpay so you can easily investing using UPI or net banking.
No. We invest in liquid securities so you can withdraw your funds with no penalty ay any time. The cash usually takes about three days to settle in your account once you redeem your mutual funds.
As of now, you need an Indian number and KYC details - including a PAN, and an Indian address - to register.
As of now, you cannot import your existing portfolios on our platform.
If you have ever invested in any funds or securities before and have done your KYC, all you need is your PAN number, your bank account number, and your bank IFSC code to get going. If you’re a first time investors, you will also need your Aadhaar card and a pen and blank paper for your KYC verification.
The entire process from onboarding through investment takes less than 5 minutes. Just keep your documents handy.