FundsIndia is an online value-added investment platform for Indian and NRI investors. It was designed and built by Wealth India Financial Services Private Limited, a Chennai based company started in the year 2008. Please refer to this page for more details
Using FundsIndia, an investor can invest in a variety of products for the medium to long-term financial needs and goals. We offer mutual funds, equities, and fixed deposits on our platform. FundsIndia is not just an informational service, it is a transactional platform where you can link with your bank and actually make investments online.
In the near future, we are planning to launch a prudent insurance platform that will offer investor-friendly, economical insurance options to our customers. Please keep an eye out for it!
FundsIndia is a purely online investment platform at this time.
FundsIndia places utmost importance in the protection of investor data. Our services are hosted in a top-security, tier-4 data center outside India. The data is stored in a continuously replicated model and is also backed up daily. Network communication with the browsers are protected with 128-bit encryption using a Thawte issued security certificate.
You can contact us through email or phone. You can write to us anytime at Contact Us with your queries/complaints. Please refer to this page for more contact details and timings.
At the outset, we are a well-founded company with a sound business model and excellent financial backing. We will be here to serve our customers for a long time to come. However, we can also re-iterate that all the investments - mutual funds, equities, NPS, deposits - made via FundsIndia are made entirely in the name of the investor. These investments will be fully and freely available for direct access by the investor at any time should something happen to us. As an investor, you do not need to worry on this count.
The mutual fund industry body AMFI has made it mandatory for all online investors to be KYC registered regardless of the size of their investment. Hence, at FundsIndia, we necessarily require our customers to be KYC registered before we can activate their account with us.
We do not send passwords by email for security reasons. The password for your account is the same as the one that you created when you registered for a new account. If you have forgotten it, we request you to go to our login page, type in your registered email id, and click on 'Forgot password'. You will receive an email with a link that you can use to reset your password.
One of the important regulatory roles that we perform as an online service is to make sure that the bank account of a customer is in their name. A cheque with pre-printed name, or a cheque without name plus an account statement are what we use to do so. Given the importance of this detail, we feel it would be unwise of us to compromise on this request and accept alternatives.
In future, if you want to add or change a bank account, we will ask for similar information. We feel that doing this would be important to protect the sanctity of online transactions done through us.
Right now there are three ways of making sure that documents reach us.
The simplest way to ensure documents reach us is to print them and mail them to us at the following address:
Wealth India Financial Services Pvt. Ltd.,
No.17, RMG Complex, First Floor,
Thiru. Vi. Ka. Industrial Estate,
Guindy, Chennai - 600 032
If you have chosen to receive the documents from us then you would also receive a pre-paid return envelope which has been paid for by us. Just enclose the required documents and post it to us.
Please note that this applies only for mutual fund account opening documents and ECS mandates only.
Convenient drop-off centers. Please note that this applies only for mutual fund account opening documents and ECS mandates only. You can drop-off your application form along with the supporting documents at any one of our convenient drop-off centers. These centers will also accept documents for your KYC registration and get you KYC compliant. Click here to locate the drop-off center closest to you
Investors can now scan their documents (in either TIFF or PDF format) and upload it to us using our 'Document Upload' section. Once we receive the scanned documents we will verify them and activate your account. Please note that you will be required to send us the physical documents within the next 15 days to keep your account active. You can access our 'Document Upload' section by > logging into your account > clicking on 'My Info'> Documents Upload.
As part of the online channel partner agreements that FundsIndia has signed with mutual fund companies, We (FundsIndia) are required to manage the debit/investment process for SIP investments. This has both advantages and disadvantages. Advantages are that we can offer SIP on any day of the month to our investors regardless of constraints in this regard set by the mutual fund companies. Also, we can stop, re-start and change the scheme of the SIP investments more dynamically than a regular mutual fund SIP.
Disadvantage is that when we make a debit for the investment, we get information about the debit (whether it was made successfully or not) only a day or two after the debit. We can make the investment on behalf of the investor only at that point. Please note that we do not have your money in the interim and we do not accrue any interest for these one or two days.
However, from the investor's perspective, this should not matter as the debit is made on their account on the appointed date, and the investment is made very shortly thereafter. The difference of one or two days should not matter over the long term.
The online payment gateway works without issues most of the times, but such issues happen from time to time.
In such situations, typically, we have not yet received the amount in our account to process your transaction. The money will be put back in your bank account within two business days. If it does not, please let us know and we'll follow up on your behalf.
To pay using net-banking you need to have your bank account registered with us. This is to adhere to the latest guidelines given to us by SEBI. Only bank accounts that have been verified / registered with us can be used for net-banking.
When we process a fund transfer from an externally held account to your FundsIndia account, the transfer takes place in two steps. The first step is to change the broker code from the current code to FundsIndia's code (ARN 69583). After that, we change the fund from an offline mode to an online mode.
When a fund shows up as offline holding, it means that the first step has completed and the second step is ongoing. During this time, we'll be able to show you the holding and the transactions on it, but any activity on it needs to happen with a paper-based request (letters) and not online. Once the fund moves to "online" mode, all transactions can happen as if it is fully a FundsIndia folio.
When your holding is offline, we need to follow an offline process (based on paper letter request) to redeem your funds.
Please login to your account, and go to 'Mutual Funds' and click on Redemptions. Your offline folios will be listed separately. If you select an offline folio for redemption (by filling in the redemption amount or units), a redemption letter will be generated for you. This letter will be available in your account's Downloads section under the title "Offline redemption PDF downloads".
Please print and sign the letter. You can either hand it over locally at an AMC office, or you can mail it to us, and we will do the needful (submit on your behalf to the AMC). The redemption request will be processed by them thereafter.
To transfer a mutual fund holding that is currently being held through another online channel, you would first need to make it a 'Direct' holding. Only your current online channel can help make this happen. So, please contact representatives of your current online broker, and request them to make your mutual fund holdings 'Direct'. After that is done, you can login to your FundsIndia account, and follow the 'Easy Transfer' process.
When a folio with an active SIP gets transferred to FundsIndia, in MOST cases, the SIP would get stopped by the AMC. The investor would need to restart the SIP via FundsIndia. We recommend that investors pro-actively stop the SIP, transfer to FundsIndia and then restart it.
For all KYC compliant investors, we need to do the needful for the KYC records as well. For that, we need a few things from you. http://www.cvlindia.com
Please produce a proof of address for the new address, and get it notarized.
Please send both these documents to our address :
FundsIndia, Wealth India Financial Services Pvt Ltd 17, Garments Complex, First Floor, TVK Industrial Estate, Guindy, Chennai 600032.
Once we have these documents, we will
To change your registered bank account, please login to your account, and click on 'My Info'. Then from the left menu, select 'Change bank details'. You can follow instructions from there.
Essentially, we will need a request letter from you to make the change, and a cancelled cheque (with your name) for the new bank account.
To register a second bank account in your account just click on 'My Info' from the main menu and choose 'Add Second Bank details' from the sub menu on the left. Once you fill out the details a 'Second bank letter' is generated and will be available in the 'Downloads' section. All you need to do is sign the second bank letter and mail it to us along with a cancelled cheque from that bank account to get your second account registered / verified.
It is ok that the AMC records are showing that you are non-KYC compliant at this time.
The way this works is that Karvy or CAMS receive all application from online platforms like us, and process the investment without issue. They store all the applications as KYC non- compliant initially. After that, periodically, Karvy and Cams check with the IT department (to match name and PAN) as well as CVL India to check on KYC status, and update their database in mass. They do not do it every day or at the time of the investment. They do it in bulk every month or so.
The key thing to note is that this is not an official indication that you are not KYC compliant. CVL India's record is the official record. So, you need not worry that the KYC information here is not right.
IDFC Mutual fund company has closed the Premier equity fund for bulk investments. They allow only SIP transactions on it. Hence the restriction. You can still setup a SIP on this scheme using your FundsIndia account.
To set up a Joint Account you need to have more than one investor added in your FundsIndia account.
Now that you have more than one investor registered you can set up a Joint Account
Please note that once all the investors are activated you do NOT have any forms to sign and send to us to create a joint account. Joint account will be shown under 'Holding Profile' only after all investors in the joint account are activated.
The primary investor's bank account will be used as the default bank account for the Joint investor account.
A maximum of three investors can be combined to form a joint account.
Yes, all investors need to submit their application form along with the supporting documents to get themselves activated. Before activation the investors also need to be KYC compliant (see account queries).
FundsIndia is not merely a platform for buying and selling financial products such as mutual funds. Apart from offering the articles, commentary, news, and market data on the products, we also offer value-added services to the investors.
For example, in mutual funds, an investor can use a trigger-option to specify when they want to enter or exit a fund. To illustrate, an investor could specify a trigger to say that they want to buy a fund when the Sensex hits 12000, and sell it when it hits 18000. Or they could say that they want to book profits when their scheme gains by 20%.
Another example of value added service is the ability to do portfolio-level SIP which means you can now have an SIP on an entire risk-balanced portfolio as opposed to a single scheme.
Also, we have a state-of-the-art planning engine that you can use to plan your financial goals. Once you create a plan, you can link it to the actual investments you make towards the goals. This will enable you to track to see how your investments are performing towards realizing your goal.
FundsIndia does not charge any fees to the investors. There are no registration charges, no account-opening fees, no transaction charges, no SIP charges, no charges for any value added services. Also, SEBI has announced that mutual fund investments will not be subject to entry-load starting August 1, 2009. So, now all mutual fund investments made through FundsIndia will incur zero entry loads.
In the case of mutual funds, our source of revenue would be the so-called 'trail fees'. This is not something that we charge our investors explicitly. These are paid out of the annual fund management fees that every mutual fund already charges.
Yes, SEBI has scrapped entry loads recently. We are very happy with the move. We were asking SEBI for this for the past nine months, and were communicating regarding this with them all through.
SEBI has now also announced that this goes into effect on August 1, 2009. So, investments made through FundsIndia will incur zero entry load charges.
Briefly, an investor would have to provide details about their name, address, bank account etc., to open an investment account. When you fill out your investor details (such as PAN number, address, bank details etc.), your pre-filled application form will be generated. Once we receive the application form with the supporting documents from you we will verify the documents, get you KYC compliant and activate your account.
Once an investor opens an account with us, they can login and start investing in a variety of ways - investing in a new scheme, establishing a SIP, establishing a trigger point to buy etc. An investor can select the scheme, select the amount to invest, login to their bank account, transfer the money, and that's it. No more forms to fill out or cheques to write. We at FundsIndia will take care of your investment.
Also, please note that the investment account opening process has to be completed only once. After that, you can invest in any fund of your choice as often as you choose.
At this time, FundsIndia is a self-service model which means the investor is free to decide what scheme to invest in. Pretty soon, we will be launching two services - a pre-packaged portfolio service which will offer a set of designed portfolios that we have put together, and an advisory service.
We are ""empanelled"" (partnered) with almost all the mutual fund houses in India. And, we are in discussions with all of them to enable us to sell their products online. At this time, we have ""online channel partner"" agreements that enable us to sell schemes online with the following mutual fund houses:
An investor can transfer money to fulfill their investments by using the net-banking facility of their respective bank. Please note that net banking facility is available only for registered bank accounts with FundsIndia.
The banks that we have partnered with are banks an investor can connect to directly from FundsIndia.com to fulfill their investments. This list of banks include:
If you have an account with one of our banking partners, the investment process would be seamless for you. On the other hand, if you don't, it would still be possible to invest with FundsIndia. In this case, once you finalize an investment through our website, you can do an electronic fund transfer (NEFT/RTGS) specifying your user id and transaction to our ICICI bank account to enable us to fulfill your transaction.
To view your existing holdings (investments in mutual funds) in a consolidated fashion in FundsIndia.com, you would need to transfer them to your FundsIndia account. To make it easier for the investors, we are devising a system (called Easy Transfer) to enable investors to quickly transfer their investments to FundsIndia to benefit from a consolidated view. FundsIndia will pre-fill all the required documents and send them for you to sign and send over.
For more details and an explanation of the process involved, please click here
With FundsIndia, you can use a single login id to access your family's investments in one place. If you would like to add another person from your family as an investor (either jointly or separately), you would need to click on the 'Add Investor' link and fill out their information. We will send a pre-filled application form for the new investor that needs to be sent back to us with the relevant documentation. Investments can be made in the name of the new investor after we receive and activate the account.
Yes, investments made under different investors (that were created using a single login id), can be seen in one consolidated portfolio view as separate investments. For example, a husband might have invested in a few schemes, a wife in a different set of schemes, and both of them jointly in a third set of schemes. All these investments can be viewed in a consolidated fashion in the portfolio screen when all these three accounts have been created under a single login id.
Yes, NRIs can open account and invest in mutual funds through FundsIndia. Please refer to this page for more details and requirements.
For redemption on the same day with that days NAV the cut-off time is 2 PM for business days. The money will be credited in your account as per the following schedule.
Equity funds - 3 business days
Debt funds - 2 business days
Liquid Funds - 1 business day
There are well-defined ways of doing that. We will provide you with the folio number of your investment that is on the records of the mutual fund houses and their back-offices. You can use this number to contact either the fund house or their back office to verify your investment. If your investment is with a CAMS (one of the back office services) supported mutual fund house, you can use their mail-back service (available on their website) to verify your investment.
Question from an actual investor:
Hello, I just have a query on the FundsIndia offer. Is it a promotional offer i.e. free/no charge of any kind for MF investment via FundsIndia? Why would you do it ? The so-called "trial-fees" - is it equivalent of 1-2% ? Is there a chance that due to recession :-) or any other reason that the existing account holders will be charged ? Generally to run a website of this nature, there are some IT costs involved - If you don't get maintenance charge how can that be managed? I believe the above are genuine questions and would request your reply for clarification.
Thanks for your interest in FundsIndia for your investment needs.
The no-transaction-fee offer is not a promotion. It’s our business plan. That is the fundamental proposition that we started our company with. The servicing fees (trail fees is another term) that we obtain from the Mutual fund houses is not more than 0.5% annually. However, we have worked out the numbers to know that it’s a scalable business that can be easily sustained with this revenue.
The key is our lack of physical presence and our online only access. Our online presence means two things – we can reach customers without any geographical limitations, and we can scale easily – both of which will enable us to get many customers for a low-operational cost.
That is the secret – well, not a big secret, actually. We are following the Amazon model for financial services, one might say.
Thanks for giving us an opportunity to address your questions.
When one invests through FundsIndia, Funds will be transferred via our payment gateway (TPSL, an ICICI-ventures entity) to our bank account, which is with ICICI Bank. There are three records for every transaction – one with your bank account, one with TPSL and the third with our bank account. Any missing funds can be traced without error. This happened once to one of our investors – he paid through the payment gateway at the stroke of midnight on a Thursday night. Probably due to the date change in the middle of transaction, his account got debited, but the money did not reach our accounts. He informed us about the incident, we worked with our payment gateway and money got back into his account in two days.
Yes, we support online SIP at FundsIndia. However, SIP with FundsIndia works a little differently. Please go to the page below for more details: SIP in FundsIndia
Please follow these steps to obtain AMC statements for your mutual funds using Cams Online:
You will receive your statement via email within an hour. Please use the password you provided to open the statement.
You can also request a single folio statement by choosing 'Single Folio Account statement' instead of Consolidated Account statement in the list above.
NRIs can invest in the majority of funds. However few AMCs do not accept investments from certain countries. The following lists the AMCs and the countries from which you will not be able to invest in them from.
AIG - USA / Canada
FT - USA
ICICI - USA
FIDELITY - USA / Canada
ING - USA / Canada
QUANTUM - USA / Canada
SBI - USA
TATA - USA / Canada
You can open an equity trading account with FundsIndia in 3 simple steps.
We charge Rs.500 as the equity account opening fee. However your brokerage charges for the first three months upto the limit of Rs.500 will be free (whichever comes first - 3 months or transactions worth Rs. 1.5 lakhs) The demat account charges will be waived for the first year. A demat account fee of Rs. 200 per year will be charged starting the second year.
Brokerage and Taxes
FundsIndia's brokerage for equity and ETF transactions is very attractive when compared to the industry average of 50 basis points (i.e. 50 paise brokerage on every Rs 100 invested)
At FundsIndia the brokerage is Rs. 15 or 30 basis points (i.e. 30 paisa on every Rs 100 charged), whichever is higher.
Please note that there are additional charges that all brokers are legally required to charge on equity transactions as per SEBI. The charges are as follows:
These additional charges are mandated by the regulatory authority and are common across all brokers.
|Illustration 1||transaction < 5000|
|Stamped duty/charges on delivery: 0.01%||0.45|
|Securities transaction Tax on delivery: 0.125% on turnover||5.625|
|Turn over tax/transaction charges: 0.0035% on turnover||0.1575|
|Service Tax: 10.36% on brokerage||1.554|
|Total Charges (Including Brokerage)||22.7865|
|Total Payable (incase of Purchases)||4522.7865|
|Total Receivable (incase of Sale )||4477.2135|
|Illustration 2||transaction < 5000|
|Brokerage 30 bpts ( 30 paise for every Rs 100 )||150|
|Stamped duty/charges on delivery: 0.01%||5|
|Securities transaction Tax on delivery: 0.125% on turnover||62.5|
|Turn over tax/transaction charges: 0.0035% on turnover||1.75|
|Service Tax: 10.36% on brokerage||15.54|
|Total Charges ( Including Brokerage)||234.79|
|Total Payable ( incase of Purchases)||50234.79|
|Total Receivable ( incase of Sale )||49765.21|
We require more information for equity trading account opening as per SEBI norms. We will ask you to give us only the details which do not already have
We need an address proof, ID proof, a cancelled cheque, and your PAN card copy.
No. We require you to open a demat account and brokerage account through us to trade in our platform
You have to open a brokerage account and demat account on our platform first and then transfer all your shares in your other demat accounts to the new demat account. Once done, you will be able to see a consolidated view of your holdings in the FundsIndia platform.
You can transfer the existing equity holdings in other Demat accounts into your FundsIndia demat account by using an Inter-settlement challan which will be available with your existing service provider. You can also make partial transfer of your stock holdings.
Yes, you can open multiple brokerage accounts with multiple brokers
We are a registered inter-mediatory with the National Stock Exchange registered through Emkay Shares Ltd as our main Broker.
The Investor will have to enter his Funds Transfer details into FundsIndia's "Payment Confirmation" page. The investor will follow the method as mentioned below.
With FundsIndia you can place request in "Withdrawal Request" page. A request made during a business day before 2pm, the money would get transferred on the next working day. A request made after a cut-off time of 2pm the money would get transferred on the second next business day.
The stock prices you see on our site are 5-minute delayed prices. Order execution will, however, be made accurately on real-time prices based on the order limits
We have designed this platform for medium and long term investments. In our view, options, and futures constitute a high-risk product category that we do not advise for our regular investors
We have designed this as a relatively safe, low-risk equity platform for our investors. For this reason, we will not be offering margin-trading facility to our investors on this platform. What that means is that this will be a cash-and-carry system - an investor can purchase stocks only to the extent of money you have in your trading account
There are approximately 4000 company stocks listed in NSE, at FundsIndia we offer 2600 company shares for investments which are highly liquid and stocks that are traded daily on the stock exchange. These companies are widely categorized into large cap, mid cap and small cap from 21 sectors..
Yes, you can. You have to first sell the mutual funds and you will get the money in your bank account in T+3 days (if it is an equity fund). Then you have to transfer the money from your bank to the broker's bank account. Once the money reaches the broker's bank account, you can start buying equities on our platform
Yes, NRI can invest in equities through FundsIndia.
With FundsIndia you can place 3 types of orders.
An order placed with a brokerage to buy or sell a set number of shares at a specified price or better. Limit orders also allow an investor to limit the length of time an order can be outstanding before being canceled.
A market order is an order to buy or sell a stock at the current market price. A broker enters an order as a market order when requested to do so by his or her client. When a market order is placed, it is almost guaranteed that the order will be executed.
A market order is that the price is paid when the order is executed. The price may not always be the same as that presented by a real-time quote service. This often happens when the market is changing very quickly. Placing an order "at the market," especially when it involves a large number of shares, offers a greater chance of getting different prices for different parts of the whole order.
A stop loss is an order to buy (or sell) a security once the price of the security climbed above (or dropped below) a specified stop price. When the specified stop price is reached, the stop order is a limit order (fixed or pre-determined price).
Stop Loss Limit Order
A stop loss limit order is an order to buy a security at no more (or sell at no less) than a specified limit price. This gives the trader some control over the price at which the trade is executed, but may prevent the order from being executed.
A stop loss buy limit order can only be executed by the exchange at the limit price or lower. For example, if an investor who is interested in investing in a particular share when the share technically break-outs, at Rs 120 when the market price is at 100 he can place a stop-loss order with the price range of 115 to 120. When the share reaches a price between 115 to 120the stop loss order gets automatically executed within the specified range. Similarly in a stop loss sell order an investor can protect his loss by placing a stop-loss order. For example, if an investor who has invested in a share at Rs 100 can protect his loss by placing the stop loss order. He can place a stop loss order with range of Rs.95-90. When the price reaches 95 and below the order gets executed within the specified range
With FundsIndia you can place real time market orders and GTC (good till cancelled).
A real time market order can be placed between 9.am of the trading day and till 3.30pm of the same trading day. The orders placed during the day will be automatically cancelled after the market timing.
A GTC order can be placed anytime during the day. A GTC order will not be executed until the limit price has been reached within the next 7 calendar days. If the GTC order is not executed with 7 calendar days the GTC order will automatically cancelled at the end of the 7th calendar day.
Opening an equities account involves opening a Demat account specifically. A Demat account requires proof of PAN card, address and bank account. Mutual fund and deposit operations do not need a Demat account, and hence we keep Demat account opening only for investors who are looking for equities. Because of this - to facilitate maintenance of MF and equity operations separately - we require you to submit the set of documents again for equity (Demat) account opening
To transfer your shares from another Demat account to your FundsIndia Demat account, you would need to follow the following steps:
FundsIndia is a platform specifically crafted for investors who seek the cost and convenience of an online platform. There are plenty of other platforms that provide trading services. We think that day-trading is not a beneficial activity for regular, medium-long-term investors. Hence, to ensure that we can provide low-cost services for our investors, we have decided to offer only delivery-based trading
A Good-Till-Cancelled (GTC) order is an order to buy or sell a security at a specific or limit price that lasts until the order is completed or cancelled. A GTC order will not be executed until the limit price has been reached. Investors often use GTC orders to set a limit price that is far away from the current market price. At FundsIndia an investor can place a GTC order for an active period of 7 calendar days. The order will automatically get cancelled on the 8th calendar day
A GTC Buy order can be placed by Selecting Buy/Sell from the Equity Menu. Select Buy and then select GTC under Validity. The GTC order will be good for 7 calendar days.
The cash equivalent to the value of the GTC buy order will be kept on hold till the GTC order is executed or cancelled.
A GTC Sell order can be placed by Selecting Buy/Sell from the Equity Menu. Select Sell and then select GTC under Validity. The GTC order will be good for 7 calendar days.
The shares equivalent to the quantity of the GTC Sell order will be kept on hold till the GTC order is executed or cancelled.
Please contact FundsIndia. firstname.lastname@example.org. 044-4344-3100
Company Fixed Deposit is the deposit placed by investors with companies for a fixed term carrying a prescribed rate of interest.
Company Fixed Deposits have always offered interest which is 2-3% higher than Bank Deposit rate, because they have to pay higher interest to banks for borrowing money.
Interest is paid on monthly/quarterly/half yearly/yearly basis or on maturity, and is sent either through cheque or through Electronic Clearing System basis.
TDS is deducted if the interest on fixed deposit exceeds Rs.5000/- in a financial year.
No, at the end of deposit period, the principal is returned to the deposit holder.
Companies registered under the Companies Act 1956, such as:
A Non-Banking Non-Finance Company (Manufacturing Company) can accept deposits subject to following limits.
Upto 10% of the aggregate of paid-up share capital and free reserves if the deposits are from shareholders or guaranteed by the directors, Otherwise upto 25% of the aggregate of paid-up share capital and free reserves.
A Non-Banking Finance Company can accept deposits up to following limits:
An Equipment Leasing Company can accept four times of its net owned fund. A Loan or Investment Company can accept deposit up to one and half time of its net owned funds.
Company Fixed Deposits can be accepted by a Manufacturing Company having duration from 6 months to 3 years. Non-Banking Finance Companies can accept deposit from 1 year to 5 years period. A Housing Finance Company can accept deposit from 1 year to 7 years.
Companies where you should not invest
In Fixed deposit scheme, interest is payable at specified frequencies. The scheme will be convenient for persons like pensioners, who require periodical interest payment. In Cumulative deposit scheme, interest is payable at the time of maturity along with the principal. This scheme is suitable for persons who do not require periodical interest payment and this can be thought of as a money multiplier scheme.
Yes, NRIs can place funds in fixed deposits with public limited companies in India in certain situations. If the permission to accept deposits from non-residents was already taken by the Indian company, it is not necessary for the investor to take a separate permission. However, due to operational constraints, at this moment, FundsIndia has decided not to accept corporate fixed deposits from NRIs. It is very likely that we will revisit this decision in future. We'll keep you posted.
Form 15G is meant for Resident Individuals who are below 65 years of age. 15H is meant for Senior Citizens who are of 65 years of age or more during the financial year.
Form 15G/15H is a self declaration by the depositor which can be obtained from the company. It is a self declaration which needs no attestation by anybody except in the case of Left Hand Thumb impression which needs to be attested by a Gazetted Officer/Bank Official. Since a copy has to be retained in our files and one copy has to be sent to the IT dept. it is required to be furnished in duplicate. We will send a Form 15G/15H declaration in the month of March and the depositor is required to return the same in duplicate duly completed and signed by the first Depositor. Form 15G/15H is sent to the depositor on the basis of the estimated interest payable for the full financial year and such estimation is calculated as on 31st March. In Cumulative deposit the estimation will be on the assumption that the deposit will be renewed for the entire maturity value on the due date in the following year.
Since one copy of the Form 15G/15H is required to be sent to I.T.O. it is possible that the I.T.O. may raise some query, when they deem it necessary.
|Shriram Transport Finance Limited||N/A||N/A||TAA||N/A|
|Mahindra and Mahindra Financial Services Ltd||N/A||FAAA||N/A||N/A|
|LIC Housing Finance LTD||N/A||FAAA||N/A||N/A|
|ICICI Home Finance Company Limited||MAAA||N/A||N/A||N/A|
Any Indian citizen between 18 and 55 years. At present, only tier-I of the scheme, involving a contribution to a non-withdrawable account, is open. Subsequently tier-II accounts, which permit voluntary savings that can be withdrawn at any point of time, can be opened. But to be eligible to open a tier-II account, you need a tier-I account.
You will need to visit a point of presence (PoP), fill up the prescribed form with the required documents. Once you are registered, the Central Recordkeeping Agency (CRA) will send you a Permanent Retirement Account Number (PRAN), along with telephone and internet passwords.
Fund Regulatory & Development Authority
A trust, set up under the Indian Trusts Act, that is responsible for taking care of the funds under the New Pension Scheme (NPS) and protect subscriber interests
POINTS OF PRESENCE(PoPs):
It is the first point of interaction. The 22 registered PoPs have authorised branches to act as collection points and extend services to customers
CENTRAL RECORDKEEPING AGENCY (CRA):
The back office for maintaining records, administration and customer service functions. National Securities Depository Ltd has been designated the CRA
PENSION FUND MANAGERS:
At present, there are six fund managers
Bank of India is the designated agency to facilitate fund transfers across various entities such as subscribers, the fund managers and the annuity service providers
There is no investment ceiling. But the minimum investment limit has been fixed at Rs.500 a month or Rs.6,000 annually. Subscribers are required to contribute at least once a quarter but there is no ceiling on how many times you invest during the year.
You will have to bear a penalty of Rs 100 per year of default and will need to pay it with the minimum amount to reactivate the account. Also, dormant accounts will be closed when the account value falls to zero.
No. There is no guarantee since NPS is a defined contribution scheme and the benefits depend on the amount contributed and the investment growth up to the time of exit.
You can choose the investment mix between equity or E (high risk but high returns), mainly fixed income instruments or C (that come with medium risk and returns) and pure fixed investment products or G (which offer low returns but have very low risks associated with them). Equity investment is capped at 50 per cent.
At present, the equity investment consists of index funds that replicate the Sensex or Nifty portfolio. The C segment includes liquid funds, corporate debt instruments, fixed deposits and public sector, municipal and infrastructure bonds. The pure fixed investment instruments include state and central government securities.
There is a trade-off between risk and returns, with a younger investor placed better to take risks.
If you are unable to decide the investment mix, the default option will kick in.
The default option, called auto choice lifecycle fund, will see the investment mix change according to the age of the subscriber. At the lowest entry age of 18 years, auto choice entails an investment of 50 per cent in E, 30 per cent in C and 20 per cent in G.
The ratios will remain unchanged till the subscriber turns 36, when the ratio of investment in E and C will decrease annually, while the proportion of G rises.
By the time the subscriber is 55 years, G will account for 80 per cent of the corpus, while the share of E and C will fall to 10 per cent each.
At the moment, the Pension Fund Regulatory and Development Authority (PFRDA) has selected six fund managers - State Bank of India, UTI, ICICI Prudential, Kotak Mahindra, IDFC and Reliance - on the basis of a bidding and technical evaluation process. You have to select one fund manager at the time of deciding your investment option; later, PFRDA may allow subscribers to choose more than one fund manager.
You can shift from one fund manager to another from May 2010.
The PRAN remains the same and you can access a toll-free number (1-800-222080). The details of your PRAN and the statement of transactions will be available on the CRA website (www.npscra.nsdl.co.in).
|CRA||Account opening||Rs.50||Through cancellation of Units|
|Annual maintenance charge||Rs. 350*|
|Per transaction||Rs. 10*|
|Registration||Rs. 40||To be collected Upfront|
|Trustee Bank||Per transaction emanating from a RBI location||Zero||Through Nav deduction|
|Per transaction emanating from a non-RBI location4||Rs. 15|
|Custodian5 (on asset value)||Asset Servicing||0.0075% p.a for Electronic segment & 0.05% p.a for physical segment||Through Nav deduction|
|Fund Manager||Investment Management||0.0009% p.a||Through Nav deduction|
Service tax and other levies as applicable * Once there are 1 million CRA accounts the annual maintenance charge will decrease to Rs. 280 and per transaction charge to Rs. 6. It will go down to Rs. 250 and Rs. 4 once there are 3 million accounts Source: PFRDA
The normal retirement age has been fixed at 60 years. At 60, you will be required to use at least 40 per cent of your accumulated savings to buy a life annuity from an insurance company. A phased withdrawal is also allowed but the lump sum benefit has to be availed of before you turn 70 years.
For those looking to exit before turning 60, there is an option to withdraw 20 per cent of the accumulated savings but buy an annuity with the remaining 80 per cent.
If the subscriber dies before he or she turns 60, the nominee can receive the entire pension corpus. Alternatively, a subscriber can exit if the account value falls to zero or if the citizenship status changes. The age of exit will be reviewed by PFRDA from time to time. There will also be the option to select an annuity that will pay a survivor pension to your spouse.
New Pension Scheme (NPS) has two types of accounts called Tier I and Tier II, It is mandatory to have a Tier I account to open a Tier II account.
The single major difference between Tier I and Tier II is that Tier II balance can be withdrawn by the investor at any time, the minimum balance to keep the account operative is 2000 Rs, at the end of financial year any balance a above that can be withdrawn. Both Tier I and Tier II are pension products ie they are meant to create a lumpsum at retirement