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FAQ

GENERAL

  • What are mutual funds?
    A mutual fund is 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 money managers, who invest the fund's capital and attempt to produce capital gains and income for the fund's investors. Investing in a Mutual Fund can be a lot easier than buying and selling individual stocks and bonds on your own. Investors can sell their holdings when they want.
  • Why are mutual funds popular among investors?
    It is important for investors to find the right vehicle for deployment of their savings as this money comes in handy in time of need or during retirement. Hence mutual funds are popular as the dividend earned on them is tax free in the hands of investor and they are a relatively safe option for investment. One of the main advantages of mutual funds is that they give small investors access to professionally managed, diversified portfolios of equities, bonds and other securities, which would be quite difficult (if not impossible) to create with a small amount of capital. Each shareholder participates proportionally in the gain or loss of the fund.
    Adequate amount of liquidity is there as you can sell mutual funds at any given point of time.
  • Why should I invest in a mutual fund ?
    Diversification in mutual funds reduces the risk of investment and gives better results in the longer run. You can also diversify across three major asset classes as you can invest in debt, equity and also in gold through mutual fund schemes. Mutual funds generally buy and sell securities in large volumes which allow investors to benefit from lower trading costs. The smallest investor can get started on mutual funds because of the minimal investment requirements. You can invest with a minimum of Rs.500 in a Systematic Investment Plan on a regular basis.
    The convenience of mutual funds is undeniable and is surely one of the main reasons investors choose them to provide the equity portion of their portfolio, rather than buying individual shares themselves. Determining a portfolio's asset allocation, researching individual stocks to find companies well positioned for growth as well as keeping an eye on the markets is all very time consuming. People devote entire careers to the stock market, and many still end up losing on their investments. Though investing in a mutual fund is certainly no guarantee that your investments will increase in value over time, it's a way to avoid some of the complicated decision-making involved in investing in stocks.
  • Which are the best mutual funds to invest in?
    There is nothing like a "best" mutual fund. It totally depends on the investor's financial goals and risk appetite Someone maybe looking for a high return over short term and somebody else might be looking for safety of the capital investment. Once individual preferences are scientifically mapped, one has to look for consistency of returns, portfolio construct, risk-reward ratios, liquidity and various other parameters to decide on the "winner" amongst the numerous schemes available.
    At MoneyFront, we keep client’s interest at the forefront of everything we do. Our proprietary algorithm will select the right schemes for your profile and endeavor to deliver superior recommendation at all times.
  • How do I pick out the best mutual funds?
    You need to first identify your goals and risk tolerance. Also the issue of time horizon must be addressed. As with all investments, investors should research a fund's past results. Moneyfront is at the forefront of providing unbiased advisory services based on scientific models which ensures that there is no human bias involved in scheme selection. Since we do not earn any in-built commission from Fund houses, we only recommend you the “best” schemes available in Indian Mutual Fund Industry.
  • What are the various platforms available to invest in mutual fund?
    Direct funds can be bought directly from respective AMC websites. However, you will have to place transactions on each AMC website individually. At Moneyfront, you need to register once and we will take care of all your investment needs and also provide you with advisory services, portfolio management , daily tracking, family view, variety of reports, news, regular updates and much more. You can enjoy the convenience of transacting on-the-move with our mobile application.
  • How do online platforms ensure that I invest in top mutual fund?
    Moneyfront online platform arrives at your model or “ideal” portfolio risk tolerance and acceptability along with your knowledge & experience in Investments.However, platform gives you the flexibility to choose any scheme as per your choice or research. Schemes which are recommended basis your risk profile are statistically judged on various parameters (basis an in-house algorithm) such as Past returns, liquidity, risk-reward ratios, company concentration, industry concentration etc. This ensures that your investments are made in the best schemes available in Indian Mutual Fund Industry.
  • What are Direct Plans?
    A relatively less known fact is that every Mutual Fund scheme has two codes REGULAR & DIRECT. The two are identical in every sense - they are the same fund, they follow the same philosophy, are managed by the same fund manager & invest in the same stocks. The difference is only of commissions. An investor who invests in a particular fund via an intermediary (technically a Distributor): a banking or trading platform or an Independent financial advisor (IFA): is automatically assigned the Regular Code. On the other hand, an investor who invests directly with the fund house and consciously chooses the option of `direct plan` is eligible for "Direct code". While the two investors invest in the exact same fund, their returns are significantly different.
    The difference is because of expenses. Every fund pays a commission (0. 8% - 1.5% in the case of Equity Funds) to an intermediary (your advisor) for getting them business, and this gets factored into the price of a fund purchased through the regular route.
    The fund house doesn’t have to pay a commission to anyone for an investor who invests direct, and hence it doesn’t need to factor in those costs. If one were to look at this difference over long periods – the difference becomes too large to ignore. The only thing regular about the “Regular Plan” is that you keep paying this commission regularly, year after year. This commission goes to your distributor (advisor) every year and gets deducted from your returns every year irrespective whether you are transacting in that scheme or not. To understand the difference in returns this can create over a long period of time go to our Savings Calculator.
  • What are the differences between Direct Plan and Regular Plan?
    Direct Plan and Regular Plan are two plans offered under the same Mutual Fund Scheme. There is only 1 difference between the two plans: Expense Ratio. Expense ratios are significantly lesser in Direct plans as compared to Regular plans.
    Every other scheme characteristic such as Underlying Portfolio, Investment Objective, Asset Allocation Pattern, Investment Strategy, Risk Factors, Fund Manager, Facilities Offered, Terms and Conditions including Exit Load Structure will be the same for both the plans.
  • Why shouldn't I just go to the websites of various Mutual Fund companies and buy Direct Plans myself?
    There are many benefits of transacting through MoneyFront. Few big ones are detailed below:
    a) Direct Code: As explained above, at MoneyFront we respect the value of your money and hence offer only Direct plan of schemes. This saves you expenses /commissions & makes significantly higher returns for your investments.
    b) One stop Shop: MoneyFront is one-stop shop to transact across majority of fund houses. You don`t have to log on to each fund house individually and transact. This platform will save you the hassle of collating information across fund houses and it will also consolidate your investments at one place.
    c) Convert from Regular to Direct Plans: MoneyFront gives you the option to upload your existing portfolio and convert your Regular holdings into Direct Plans in a simplified and paperless manner.
    d) Scientific recommendations: Our algorithm will give you the best-fit model portfolios for your risk tolerance and recommend schemes which will suit your requirements. These schemes are scientifically picked after checking various parameters like: past returns, industry concentration, company concentration, liquidity and risk-to-reward ratios.
    e) Other complimentary features: MoneyFront platform will offer you host of other features like automated triggers, portfolio rebalancing, SIP expiry triggers, FMP maturity triggers, Income estimator for liquidity management, family view of portfolios, MoneyFront blogs & research etc.
  • What makes Moneyfront different from other online platforms?
    Moneyfront is the amongst the first ones to offer online access to Direct Mutual Funds as compared to other online platforms which offer only Regular Plans. Every mutual fund has two plans: direct and regular. Direct plans have higher returns because of lower expense ratios. Expense ratio is lower as distributor commissions are eliminated. So unlike other platforms, Moneyfront does not earn any commissions from your investments.
  • Who can invest with Moneyfront?
    Any individual (Resident Indian or NRI) can transact with Moneyfront. Residents of USA & Canada are however, restricted from transacting currently.
    We will be enabling non-individual access soon. Please write to us on info@moneyfront.in if you are a non-individual and would like access to our non-individual section as well.
  • Are you registered with SEBI?
    Yes, we are registered with SEBI. MoneyFront is a brand owned by MoneyMap Investment Advisors Pvt. Ltd.
    Moneymap Investment Advisors Private Limited is registered with the Securities and Exchange Board of India ("SEBI") as an Investment Advisor under SEBI (Investment Advisers) Regulations, 2013 ("IA regulations") vide registration no. INA000004500 dated April 05, 2016, pursuant to which it provides investment advisory services to its clients.

ACCOUNT RELATED

  • Is it compulsory to be KYC compliant for registering on Moneyfront ?
    No, it is not compulsory to be KYC compliant for registering on MoneyFront. However, to successfully transact, one needs to be KYC verified. We will check your KYC status basis your PAN details and if verified, you can freely transact on our platform.
    For clients, where KYC is not verified, we will help you with a pre-filled KYC form which you can courier to our correspondence address and we shall help you get KYC verified. Please note that as per norms on KYC, we might have to do IPV (In-Person verification) once to establish the credentials mentioned on KYC form.
    Alternatively, you can submit this form to your nearest RTA (CAMS or KARVY) or any other PoS for KYC. For more info on this please reach out to us on info@moneymap.in
  • Can I open multiple accounts?
    No, you can have only one account which will be linked to your unique PAN number. However, you can open multiple accounts in the name of your family members and invest in their respective names. All these accounts can be linked together for consolidated family viewing. Also, you can open multiple accounts with different holding patterns (joint names)
  • How safe is my account with Moneyfront?
    At Moneyfront we have set our system and platform at the highest standard of encryption and data security. SSL4 encryption and Bank grade security will ensure that all your transactions are routed seamlessly, safely and in the most secure manner. Your trust is our reward!
    Also, your funds are directly held with the fund houses. If ever, you wish to transact through them directly you can do so. You can even redeem directly by approaching any of the fund houses and the proceeds will be credited to your registered bank account. MoneyFront is just a platform to enable you to transact smoothly. We have no lien or right over your funds/amount whatsoever.
  • Can I add joint holders to my investment account with Moneyfront?
    Yes, joint holders can be added to the investment account with Moneyfront. As per norms, maximum three holders are permitted per folio.
    Moneyfront also enables consolidated family viewing in case of multiple accounts with different holding patterns.
  • Can a minor open an account ?
    Yes, a minor account can be opened on Moneyfront provided the guardian is an adult with valid PAN and is KYC compliant.
  • Can I nominate a minor as my nominee?
    Yes, a minor can be nominated provided the guardian details are also provided in the nomination form.
  • Is KYC of a nominee mandatory?
    No, the KYC of the nominee is not mandatory. However, details such as address etc will be required to be filled in the nomination form.
  • I just moved residences. How do I update it in your records?
    Please download, fill, and sign the KYC Modification Form which is available in the KYC forms section under "Document vault "on your personal dashboard.
    Then, you need send this form along with proof of address at the following address:
    505, Crystal Plaza, Satam Wadi, Andheri - Ghatkopar Link Road, Opposite Solitaire Park, Andheri East, Mumbai - 400099, Maharashtra.
    We will send the KYC form for updation and will inform you once the change is maintained. Address once updated, is automatically picked up by all AMCs and updated in their records for further correspondence.
  • Can I add Second / Third Holder in Mutual Fund Folio?
    Once a particular folio has been created, you cannot add or delete holders in it. To have a separate holding pattern, you will have to open a different account with new holder and invest through a new folio.
  • If a Non Resident Indian (NRI) invests in mutual funds and he becomes resident later, what will happen to his mutual fund investments made prior to his return to India? Will it attract Income Tax?
    On becoming a resident Indian, you must inform your banks and mutual funds about your change of status within a reasonable time. You may be able to continue holding your mutual funds after informing the fund house about your change of status. Your bank mandates will have to be changed from NRO/NRE accounts to domestic savings account.
    Change of Status from NR to domestic or vice versa, does not entail any tax liability on your existing holdings, if they are held as is.
  • What about minor becoming major?
    Upon a Minor attaining the age of majority (i.e. on completing 18 years of age), he/she must be KYC Compliant and have KYC Acknowledgement of their own. The same should be informed to the Mutual Fund where he/she holds an investment, along with other details such as the Bank Details, Signature, etc as per the present requirements of such Mutual Fund.
  • Are there any special requirements for an NRI?
    Yes. In addition to the certified true copy of the passport, certified true copy of the overseas address and permanent address will also be required. If any of the documents (including attestations/ certifications) towards proof of identity or address is in a foreign language, they have to be translated to English for submission. The documents can be attested, by the Consulate office or overseas branches of scheduled commercial banks registered in India.

INVESTING RELATED

  • How can I invest in mutual funds?
    You can invest in any mutual fund scheme either online (through online investment facility provided by AMCs or online portals like MoneyFront) or offline (through any financial intermediary or directly walking in any branch of the Mutual Fund Company). Financial intermediaries can be a bank, brokerage house or third party distributor or IFAs. Whether you decide to invest online or offline, you will require the following documents: Photograph, PAN card, Name and Address proof, Bank Account Details and KYC Compliance.
  • What are index funds?
    An index fund is a type of mutual fund with a portfolio constructed to match or track the components of a market index, such as the BSE Index. An index mutual fund is said to provide broad market exposure, low operating expenses and low portfolio turnover.
  • How do index funds perform in India?
    Index funds mirror the stock indices they track. For instance, a scheme that tracks the Sensex will invest in the 30 stocks that comprise the benchmark index of the Bombay Stock Exchange. The proportion of investment in each stock will be exactly in accordance with the weight of the stock in the index.
    The management of such schemes is easier. No decision is needed on what stocks must be held, for how long, and how much must be invested in each. The fund manager just needs to keep the trading to the tiny level needed to accurately track the index. The logical fallout is on cost. Since no research is needed, there is no need for costly analysts. This translates into low management fees and hence low transaction costs. After all, the fund manager will not be actively churning his portfolio. So, it`s obvious that an index fund can never beat the index. Neither should it do worse. This is contrary to active management, where the fund manager will employ a variety of techniques based on research, sector picking and market timing to try and beat the market. However, there are some problems with the way some index funds are actually being run. Some Indian index funds` performance in the past deviates from the very index they are supposed to be based on. While a small mismatch, called tracking error, is normal, there are funds that have underperformed or outperformed their indices by several percentage points.
  • What is the difference between index funds and mutual funds?
    Index funds are a type of mutual fund. Mutual funds may be actively or passively managed. An actively managed mutual fund attempts to apply discretion to choose a basket of stocks that collectively outperform the market or their relevant benchmark whereas a passively managed fund simply matches the market index like the NIFTY or Sensex.
  • What are the mutual fund options available in India?
    Let us have a look at some important mutual fund schemes under the following three categories based on maturity period of investment:

    I. Open-Ended - This scheme allows investors to buy or sell units at any point in time. This does not have a fixed maturity date.

    1. Debt/ Income - In a debt/income scheme, a major part of the investable fund are channelized towards debentures, government securities, and other debt instruments. Although capital appreciation is low (compared to the equity mutual funds), this is a relatively low risk-low return investment avenue which is ideal for investors seeking a steady income.

    2. Money Market/ Liquid - This is ideal for investors looking to utilize their surplus funds in short term instruments while awaiting better options. These schemes invest in short-term debt instruments and seek to provide reasonable returns for the investors.

    3. Equity/ Growth - Equities are a popular mutual fund category amongst retail investors. Although it could be a high-risk investment in the short term, investors can expect capital appreciation in the long run. If you are at your prime earning stage and looking for long-term benefits, equity schemes could be an ideal investment.

    3. i. Index Scheme - Index schemes is a widely popular concept. These follow a passive investment strategy where your investments replicate the movements of benchmark indices like Nifty, Sensex, etc.

    3. ii. Sectoral Scheme - Sectoral funds are invested in a specific sector like infrastructure, IT, pharmaceuticals, etc. or segments of the capital market like large caps, mid caps, etc. This scheme provides a relatively high risk-high return opportunity within the equity space.

    3. iii. Tax Saving - As the name suggests, this scheme offers tax benefits to its investors. The funds are invested in equities thereby offering long-term growth opportunities. Tax saving mutual funds (called Equity Linked Savings Schemes) has a 3-year lock-in period.

    4. Balanced - This scheme allows investors to enjoy growth and income at regular intervals. Funds are invested in both equities and fixed income securities; the proportion is pre-determined and disclosed in the scheme related offer document. These are ideal for the cautiously aggressive investors.

    II. Closed-Ended - In India, this type of scheme has a stipulated maturity period and investors can invest only during the initial launch period known as the NFO (New Fund Offer) period.Please refer to the "NFO corner" under Mutual Fund section on our website to view the current offerings now.

    1. Capital Protection Oriented schemes - The primary objective of this scheme is to safeguard the principal amount while trying to deliver reasonable returns. These invest in high-quality fixed income securities with marginal exposure to equities. Debt instruments mature along with the maturity period of the scheme to avoid interest-rate risk.

    2. Fixed Maturity Plans (FMPs) - FMPs, as the name suggests, are mutual fund schemes with a defined maturity period. These schemes normally comprise of debt instruments which mature in line with the maturity of the scheme, thereby earning through the interest component (also called coupons) of the securities in the portfolio. FMPs are normally passively managed, i.e. there is no active trading of debt instruments in the portfolio. The expenses which are charged to the scheme are hence, generally lower than actively managed schemes.

    III. Interval Plans - Operating as a combination of open and closed ended schemes, it allows investors to trade units at pre-defined intervals.

  • What are money market funds?
    A money market fund`s portfolio is comprised of short-term (less than one year) securities representing high-quality, liquid debt and monetary instruments.
  • How to invest in mutual fund in hassle free manner?
    You can open online investment account with MoneyFront. Its completely hassle-free and paperless. Our platform will assess your risk tolerance and offer you asset allocation plans accordingly. We are an unbiased robo-advisory platform and all scheme selection and recommendation is made purely basis statistical inputs devoid of any bias.
  • Who will facilitate me in investing online?
    Moneyfront is at the forefront of the digital revolution in assisting investors to fast track their financial journey. You can meet all your investment needs just by coming onboard with us and we will take care of the rest in true terms. Just to name a few, we offer you model portfolio, deviation depiction, advisory services, family viewing, and by default all your investments go only in "Direct" schemes which saves you enough for your next holiday! To calculate your savings now, please go to our Savings Meter. Should you face any problems in opening an account with us, do reach out at info@moneyfront.in or call us on +91.22.41202615
  • Will you advise me on the top mutual funds in the industry?
    MoneyFront is a complete guide to mutual funds which provides detailed information on performance of various schemes including latest NAVs and fund comparisons. You will find updates on Fund comparisons, Portfolio, Dividend, Exit Load, NFO and AUM of all the Indian mutual fund schemes on a regular basis. We ensure that all this information is processed and every detail duly captured while recommending schemes to our clients. There is no guarantee of returns in Mutual funds, but our endeavor is to offer our clients the best schemes available in industry.
  • How many top mutual funds are there in my portfolio?
    With Moneyfront you can be rest assured that all the schemes in your portfolio are amongst the best in category. We not only assess schemes basis returns, but give considerable weightage to risk ratios and other critical parameters while selecting the best for you.
  • Can I invest in index funds and other mutual funds simultaneously?
    Yes you can invest in both the funds simultaneously as index funds are a subset of mutual funds.
  • Can I start investing without submitting my account opening documents?
    We are a paperless platform and you need not send any physical documents to us for Investing. If your KYC is verified, you can start transacting by simply uploading a scanned copy of your PAN card and cancelled cheque (for bank mandate).
  • Can I transact on a holiday?
    Yes, transactions can be placed on our website even on a holiday. Though the NAV applicable will be of the next working day (market day). For eg., if the request is placed on a Sunday, the NAV applicable will be of Monday (or the next business day).
  • What will happen to mutual fund holdings on closing the Moneyfront account?
    You can choose to transfer your holdings to another advisor or transact directly with individual AMCs in case of closure of Moneyfront account.
  • How can I change my registered bank account with Moneyfront?
    Moneyfront gives you the option to register upto 5 bank accounts from which to process your transaction. One of which can be maintained as a default or your primary bank account. If you wish to change the bank account at any point of time, you can do so by making the necessary changes in the "Settings" section once you login. For any help on this do write to us at info@moneyfront.in
  • I am an NRI investor. Can I register on Moneyfront and buy MFs?
    Yes, NRIs can seamlessly transact through our platform. NR clients can use either NRE or NRO accounts for making purchases. Residents of USA & Canada are not allowed to transact.
  • As an NRI investor what all documents and details do I need to provide to open an account with Moneyfront?
    MoneyFront offers a paperless platform to NR clients as well. Only additional information required is the local as well as overseas address for NR clients. Bank Mandates to be maintained will have to necessarily be NRE or NRO accounts held in India.
  • How can I transfer my holdings from other brokers or advisors to Moneyfront?
    If you wish to switch your current holdings from other sources to Moneyfront, please upload your CAS(Consolidated Account Statement) which comes to all investors from NSDL on Moneyfront website. A link is provided in the dashboard which will facilitate and guide you to seamlessly switch to Moneyfront. We will also show you exit & tax implications of making such a switch to enable you to make an informed choice.
  • What happens to my investments in case something unfortunate happens to Moneyfront?
    We assure you that your money is 100% safe with Moneyfront. Your investment is routed directly from your bank account to the respective AMC account, even if something were to happen to Moneyfront your investments are held with respective Fund Houses . You have access to your money 24*7 and can independently transact with AMCs (fund houses). MoneyFront does not have any lien on your holdings or funds. However, we are here to stay and our investors can be rest assured on this count .
  • Is there a difference in the NAVs between the Direct and the Regular Schemes?
    Yes, there is a difference in the NAVs because of difference in the expense ratios of regular vs. direct schemes. NAV of direct plans is higher than the regular plans because of the higher appreciation that these schemes have been giving. Direct plans have less expense raito as compared to regular plans and hence, the returns are higher. This is why our investors save money, as we route investments ONLY in Direct Code of schemes.
    This might sound confusing, as higher NAV will lead to lower units on purchase. However, it is not whether you are buying a particular asset at Rs. 100 or Rs. 102 - it is the appreciation on this capital invested, which will make an impact on your portfolio. To understand, take an example: Client A invests 10000 Rs. in HDFC Equity Fund - Regular Plan at an NAV of 473 Rs and Client B invest similar amount in same scheme but in the Direct Plan at an NAV of 486 Rs.
    Client A will have 21.41 units and client B will have 20.57 Units of the same scheme. Over a one year period, assuming core portfolio of the scheme delivers 15% return and the expense ratio for regular plan is 2.25% and direct plan is 1.4%. Approximate calculations show that:
    Client A will make = 1275 Rs as return and Client B will make 1360 Rs. By virtue of investing in Direct plans. Because of higher returns, NAV of direct plan will appreciate faster than regular plan and hence, will always be higher than the regular plan of same scheme.
  • How do I know if the Scheme / Plan I have invested in is Direct Plan or Regular Plan?
    This is very simple. You need to look for the word "direct" in the name of the scheme itself. Investors also need to understand that all online investment platforms may not be offering direct schemes. Most of the distributors, banks, independent advisors, private bankers and even online platforms offer only regular code and hence, you will not find the word "Direct" in your holdings.
    MoneyFront is at the forefront of this financial revolution, wherein, we want investors to maximize their returns. And hence, we offer only "Direct Plans" of all schemes.
  • How can I remove my distributor`s code from my investments in the existing plan?
    Moneyfront has simplified the process for converting existing portfolio. A link is provided in your personal dashboard once you login which guides you on the entire flow. You just need to upload CAS (Consolidated account statement) which is sent by NSDL on your Moneyfront account and we will happily guide you with the process of transferring regular plans to direct code.
  • Are there any alternate ways to buy direct funds?
    Direct funds can be bought directly from respective AMC websites. However, you will have to place transactions on each AMC website individually, to achieve this. At Moneyfront, all you need to do is register once and we will take care of all your investment needs and also provide you with advisory services, portfolio management , daily tracking, family view, variety of reports, news, regular updates and much more. You can enjoy the convenience of transacting on-the-move with our app.
  • Is it a hassle to shift from Regular to Direct plan?
    No, Moneyfront makes the switch hassle free as it just takes a few minutes of your time to open an account with us. Once you have the account you can execute all your investments online even on the move. All investments routed through our platform are by default made only in direct schemes.
  • Is it worth the time and effort to switch to Direct Plans from Regular Plans?
    Yes, the difference in the expense ratio and hence the NAV of direct vs regular schemes can save you a lot of money over a period of time, thus, making it completely worthwhile to make the switch. To demonstrate how much you can save through us please refer to our savings meter.
  • What is the NAV I receive when I transact with Moneyfront?
    You get the same business day`s NAV for all transactions executed before the cut off time (as prescribed on our website) for that particular scheme. Next business day`s NAV is applicable for all transactions done after cut off time.
  • What is "Cut-Off Time"?
    The cutoff prescribed by Fund Houses for same day NAV for equity and debt schemes is 3:00 pm. For liquid schemes the cutoff time is 2:00 pm (day to be read and understood as business day). However, for seamless facilitation of transactions, cut-off time on MoneyFront website is 1:00 pm for Equity & Debt funds and 12:00 noon for Liquid funds.
  • Will the NAV of my portfolios get updated on daily basis?
    Yes, it is updated on a daily basis.
  • What is FATCA declaration?
    The provisions commonly known as the Foreign Account Tax Compliance Act (FATCA) became law in March 2010.

    FATCA targets tax non-compliance by U.S. taxpayers with foreign accounts .

    FATCA focuses on reporting:

    By U.S. taxpayers about certain foreign financial accounts and offshore assets.

    By foreign financial institutions about financial accounts held by U.S. taxpayers or foreign entities in which U.S. taxpayers hold a substantial ownership interest.

    The objective of FATCA is the reporting of foreign financial assets; withholding is the cost of not reporting.

    It is a regulatory requirement wherein every mutual funds investor now mandatorily needs to provide the information and documentation towards compliance with tax information sharing laws, such as FATCA/CRS. For your convenience, you can submit the same through online mode for updates across participating funds. FATCA declaration is a mandatory one-time requirement for investments in Mutual Fund schemes.

PAYMENT RELATED

  • Why do I need to provide Bank mandate while registering?
    Bank mandate along with a cancelled cheque is required to register your ECS request with your bank. It validates the authenticity of the request. This will also ensure that all redemption/maturity proceeds are credited in your bank account in a timely and hassle free manner.
  • What is the minimum amount required to invest on Moneyfront ?
    There is no minimum investment amount prescribed by MoneyFront. However, most of the schemes have a minimum amount (as prescribed by the respective Fund House) and investors will have to abide by these minimum stipulations.
  • How much does Moneyfront charge for its service?
    MoneyFront does not earn any in-built commission from Fund Houses. All our services are also free currently. For more information on this please refer to our pricing policy in No Distributor fees
  • Can I do purchases via credit/debit cards?
    No, RBI regulations don’t permit investments from credit/debit cards or through e-wallets. Investments in Mutual Funds through MoneyFront will be done via direct debit on your mandated bank account.
  • What banks are you partnered with?
    Our payment gateway is Tech Process through which all transactions are routed online. Tech Process is partnered with almost all the major banks in the country. The list of banks affiliated with Tech Process will be displayed while registering your Bank Mandate for the first time.

SIP RELATED

  • What is a Systematic Investment Plan?
    Systematic Investment Plan (SIP) is a popular investment strategy suitable for all investors. Instead of making one lump sum investment, you put in a fixed sum of money each month or quarter (frequency will vary for different schemes), over a period of time. You decide the periodic investment amount and the time span of this investment. This system does away with the need to time the market, making it attractive for investors. With Moneyfront, you can start your SIP with as little as Rs 500 a month.
    It is necessary to remember that a SIP is not a type of Mutual Fund. It is a method of investing in a Mutual Fund-an incremental and on-going investment strategy you can adopt to minimize risk while participating in the financial markets.
  • Where is the money invested?
    In SIP the money is invested in a Mutual Fund which invests your money in the underlying financial instruments such as Stocks, Bonds, Gold etc.
  • What are the benefits of SIP?
    By opting to invest every month, you invest in a disciplined manner. This results in a disciplined approach to savings. As this is a monthly exercise, you tend to plan your expenditure accordingly.
    The SIP reduces the average purchase cost even in volatile stock markets with relative ease. When you invest a fixed amount every month, the number of Mutual Fund units you actually buy depends on their market price. Therefore, with the money you invest each month, you can buy fewer units when the market moves up and more units when the market moves down. This brings down and averages the price of purchase. Over time, your chances of making a profit are much higher when compared to a one-time investment. 1) Tackle Volatility Volatility indicates sharp movement in market indices and is characterized by periods when prices move quickly and/or by large amount between gains or losses. It can be often viewed as negative i.e. it represents risk. Averaging is one of the ways to shield your money from volatility."Averaging" means investing a fixed amount of money at regular intervals, irrespective of market conditions. It enables you to buy less when prices are high and buy more when prices are low. It is therefore suggested to invest as regularly as possible, without being unduly influenced by news, popular opinions or events. 2)  The Power of Compounding Power of compounding works on the principle of building wealth through reinvesting rather than spending the profits. By doing that, you can capture the future returns on your reinvested profits as well as on your original investments. 3) The Power of Rupee Cost AveragingIn a volatile market, regular investment helps get you better cost per unit than lump-sum buys. By investing fixed sums at regular intervals, you pick up more units when the prices are low and less units when the prices are high. This brings down the average cost of your units. Therefore there is no need to time the markets as you invest at predetermined intervals. Once you have chosen the fund, aim for a better average cost. That`s easier than trying to buy at the lowest price.
  • Is there a load?
    An entry or exit load is a fee you pay the fund when you buy or sell the units. Mostly the entry/exit load conditions don’t vary between SIP or Lump-sum investments. Though, different Fund Houses can have different conditions pertaining to entry/exit.
  • Can I discontinue my SIP?
    Yes, you can discontinue SIP by informing Moneyfront 15 days prior to the payout. The SIP will be discontinued. You can continue to keep your money with the fund and withdraw it when you want.
  • What are the tax implications?
    Let`s say you have invested in the SIP option of a diversified Equity Fund.
    If you sell the units after a year of buying, you pay no capital gains tax. If you sell it before a year, you pay capital gains tax of 15%. (plus surcharge & cess, as applicable)
    Let`s say you invest through a SIP for 12 months: January to December 2015. Now, in February 2016, you want to sell some units.
    The system of first-in, first-out (FIFO) applies here. So, the amount you invest in January 2015 and the units you bought with that money will be regarded as the units you sell in February 2016. For tax purposes, the units that you sell first will be deemed as the units bought first.
  • How do I enroll in the Systematic Investment Plan?
    First, you need to open a Moneyfront account. Post account opening, and your mandatory KYC details verification, you can login to your account and start an SIP online!! We will set up SIP and your Account will automatically get debited each month (if frequency is monthly) for the amount specified by you for investment into funds you have chosen. You would receive an SMS and e-mail alert for each such transaction.
  • What is the price at which the units are bought?
    The price of purchase of the units is the NAV on the day of execution. (Based on cut-off times for different fund types).
  • What will happen if there is insufficient balance in the account on the first day to execute the SIP?
    In case of insufficient balance in the Account, the SIP for that month will not get executed. You will receive an SMS and e mail alert for this. However, it will continue in the subsequent months subject to sufficient balance in the Account. Hence, to obtain the maximum benefit of SIP, please ensure sufficient balance is maintained in your account closer to the date of debit.
  • Are there any charges for SIP?
    Moneyfront does not charge you for registering your SIP. Setting up of SIPs is absolutely free and we help you do that in Direct Plans of Mutual Funds, hence, making more returns for y ou in the process. All information pertaining to exit load (if any) will vary from scheme to scheme.
  • How will I know that my SIP instructions have been carried out?
    On execution of your instruction, you will receive a confirmation on the investment made, through an SMS and e-mail from Moneyfront, with details of amount invested, price of purchase, fund details and number of units purchased.
  • Where can I get my SIP details?
    The entire transaction history and portfolio can be viewed at your Moneyfront "MyPortfolio" section once you login.
  • How do I enroll in the Systematic Withdrawal Plan (SWP)?
    Moneyfront offers you a facility to plan for your retirement and other regular monthly income needs through the Systematic Withdrawal Plan (SWP). Depending on your needs for monthly or quarterly income, you can then choose to withdraw a fixed sum per month or quarter.
  • In which funds can I invest through an SIP?
    Most Open ended funds allow investments through SIP. However, some debt funds may not allow investments through SIP. The scheme offer document provides this information.
  • Is it necessary to have a mandate to set up a SIP?
    You can set up an SIP, even if you do not have a mandate, in the following ways:
    a)You have to first select an scheme from the Moneyfront site and post your preferences in terms of frequency, date, amount etc.
    b)Once you place an order you will receive an URN no. (Unique Registration Number) for the SIP.
    c)You have to login to the net banking portal of your current bank and add the fund house as biller. For e.g.: Say you wish to set an SIP in Birla Frontline Equity fund for Rs.10K every month on the 1st of each month. And your registered bank is HDFC Bank. You will have to login to HDFC`s net banking portal once and register "Birla Sun Life AMC" as the biller and paste the "URN No." there to set the debit instruction.

    While you add the AMC as a biller through internet banking, please note that each SIP has to be registered separately.

    You will be informed about upcoming installments every month. And you can track live performance of your SIPs in "My Portfolio" section of your Moneyfront account.
  • Is there any upper limit in SIP investments?
    No, this is a misconception that SIP investments are only done in the case of small amounts. You can invest as much amount as you want; there is no upper limit to the SIP amount. Due to its compounding ability big investments can lead you to large wealth, so investing big amounts is rather a good option.
  • Can I switch to another scheme?
    Yes, you can switch from one scheme to another by executing a switch request online through Moneyfront account.
  • Can I appoint a nominee for my SIP investment?
    Yes, Just like in the case of other investments nominee can be appointed for SIP also.
  • Can NRIs start SIP?
    Yes, NRI can make investments in SIP except the residents of USA and Canada.
  • Where should one invest, SIP in equities on self research or SIP in mutual funds?
    In case you are thinking of investing in equities by self, there are various aspects that should be kept in mind
    1. Ability to do research or select stocks: You need to be able to understand and analyze company financials as well as economic variables affecting those financials.
    2. Ability to create a diversified portfolio of stocks - say 8-10 stocks.
    3. Ability to do a SIP: you need to have adequate funds to be able to invest as SIP in your diversified portfolio. For example: If you portfolio contains Stocks A, B, C in ratio 3,1,2 then you need to be able to buy minimum 3 shares of stock A, 1 of stock B and 2 of stock C. Your minimum SIP investment could run into 10-12 thousand rupees with just 3 stocks.
    With mutual funds, you don`t need to understand stocks, or portfolio creation and can start investing with as little as Rs. 1000. You know that these mutual funds are professionally managed and based on a lot of research and analysis. Mutual fund investments are managed by qualified, professional and experienced managers who do this as a whole-time activity and are backed by research teams, hence, making it a viable choice as compared to stocks.
  • Which dates can I choose for my SIP?
    You can choose any date upto the 28th of the month for starting the SIP. However in case of some schemes only specific dates may be available for investments for e.g. The 1st, 5th, 10th and 15th. Please read the scheme offer document carefully before you start investing.
  • What should I choose between lump-sum and SIP investments?
    Most of the time, under most circumstances, over a sufficiently long period of time, SIPs will do better. However, at time Lump-sum investments can fetch better returns (if the markets have been moving unilaterally one-way up) The choice is mostly driven by investor`s liquidity and psychology.
    To understand this, one just has to review what a SIP is and what it does. SIP is a regular investment in a fund of a fixed amount at a fixed frequency, generally monthly. SIPs neatly solve the two main problems that prevent investors from getting the best possible returns from mutual funds.
    Firstly, since SIPs mean investing with a fixed sum regularly regardless of the NAV or market level, investors automatically buy more units when the markets are low. This results in a lower average price, which translates to higher returns. If you invest a large sum at one go, you could end up catching a high point of the equity markets. This would mean that you have invested at a high NAV and that would reduce your gains if the market falls. An SIP is a good way to invest at an average price over a period.
    Secondly, SIPs are also a great psychological help while investing. Investors inevitably try to time the market. When the market falls, they sell and stop investing. When it rises, they invest more. This is the opposite of what should be done. An SIP puts an end to all this by automating the process of investing regularly. It eliminates the mental load of deciding when to invest and leads to better returns.
    It`s clear from the first point above that while a lump sum investment could catch a high point in the market, it could also coincidentally catch a low point. If one catches a low point in the market, then this would make it superior to SIPs.
    In nutshell, an investor should deploy both strategies of investing Lump-sum (depending on liquidity) and practicing a disciplined approach of SIP for a long tenor.
  • What are the best schemes to invest for SIPs?
    There is no one scheme which can be called the "best scheme" in this industry. It totally depends on each investor`s personal needs and risk appetite. Moneyfront provides you with detailed and logical recommendation about which schemes you should invest in, depending on your risk profile. Once you open an account with us you can choose to invest in the schemes as per the model portfolio that is derived as per your risk tolerance. MoneyFront will also recommend you schemes basis various risk/return parameters for all your specific requirements like: SIPs, Lump-sum investments, Tax saving plans etc.
    You will always have an option to pick schemes on your own but we would recommend you to benefit from our scientific advisory services.
  • Will I get expiry notifications for my SIPs?
    Yes, Moneyfront will send you an alert mail and message well in advance to remind you of SIP expiry and renewal thereof.
  • How easy or difficult is it to renew a SIP?
    With Moneyfront, you will receive SIP triggers before expiry of your current SIP. All you need to do is set up a new SIP by selecting the amount, frequency, scheme, and bank mandate (if different from the current one).Thus, the process of renewing SIPs is much easier online than offline.
  • Can I do SIPs in Direct Plans?
    That`s what we are here for! Moneyfront platform offers only Direct Plans of mutual fund schemes. Not only can you invest in SIPs of Direct Plans but by doing so, you are also saving a substantial sum of money which is not the case if you invest in the Regular Plans of same schemes.
  • What are the benefits of doing SIP in Direct Plans?
    Under the direct plans, you approach the mutual fund house directly to invest. Since there is no distributor involved, no commission is paid. Thus, the expense ratio is lower for direct plans as compared to regular plans.
    In simple terms, expense ratio is a measure of cost that you pay to the fund house for managing your money. Expense ratio covers everything from fund management fees, operational and marketing expenses to distribution expenses. Keeping everything else same, a lower expense ratio means lower costs and hence better returns. Since everything else (portfolio, stock holdings etc) is exactly same in direct plans and regular plans, direct plans offer better returns than regular plans. This is the reason NAV for direct plan for the scheme is higher than the NAV for a regular plan.
    Moneyfront is among the first few online platforms to offer SIPs in Direct Plans of mutual fund schemes.
  • How do I cancel or stop my SIP?
    To cancel or stop your ongoing SIP, kindly write to us, 15 days prior to your SIP due date, at info@moneyfront.com and we shall help you do the needful.

NRI

  • Who is a non-resident Indian (NRI)?
    A person who has been outside India for 182 days or more during a financial year is a non resident Indian.
    NRIs can continue to enjoy non-resident status in India if their presence in the country is more than 60 days but less than 182 days in a financial year, even if their stay in India during the past four financial years is 365 days or more.
    A person, who has been deputed overseas for more than 6 months, also qualifies for non-resident status.
  • Can NRIs invest in domestic mutual funds?
    Yes, NRIs can invest in units of domestic mutual funds.
  • How can NRIs invest in mutual funds in India?
    All investments made by NRIs have to be in local currency. Mutual funds in India are not allowed to accept investments in foreign currency. For investing in Indian mutual funds, therefore, an NRI needs to open one of the three bank accounts- Non-resident external rupee (NRE) account, non-resident ordinary rupee (NRO) account or foreign currency non-resident account (FCNR)-with an Indian bank. The amount that is to be invested can be directly debited from an NRE/NRO account or received by inward remittances through normal banking channels. With Moneyfront, NRIs can start investing online once the account is open and the bank mandate is set up.
  • What is the KYC requirement for NRIs?
    Submission of passport copy is mandatory. Relevant pages of passport having name, photo, date of birth and address should be submitted. Overseas address is mandatory. Either the permanent or correspondence address must be an overseas address. If the details are in a foreign language, translation is to be done in English and to be self attested.
    To open a Moneyfront online investment account, please upload a scan image of ID proof, overseas address proof, cancelled cheque etc. to us and the account can be opened online in a paperless format.
  • What is a Portfolio Investment Scheme (PIS)?
    Portfolio Investment Scheme (PIS) is a scheme of RBI under which NRIs can purchase/sell shares/convertible debentures of Indian companies on Stock Exchanges under Portfolio Investment Scheme. For this purpose, the NRI/PIO has to apply to a designated branch of a bank, which deals in Portfolio Investment. All sale/purchase transactions are to be routed through the designated branch.
  • Who is a person of Indian Origin?
    For the purposes of investments in shares/securities in India, person of Indian origin means a citizen of any country other than Pakistan or Bangladesh, if
    a) He at any time, held an Indian passport; or
    b) He or either of his parents for any of his grandparents was a citizen of India by virtue of the constitution of India or Citizenship Act, 1955; or
    c) The person is a spouse of an Indian citizen or a person referred to in clause (a) or (b).
  • Who is an overseas citizen of India (OCI)?
    Under OCI Scheme, government of India decided to grant overseas citizenship of India (OCI) commonly known as "dual citizenship". A foreign national, who was eligible to become a citizen of India on 26.01.1950 or was a citizen of India on or at any time after 26.01.1950 or belonged to a territory that became part of India after 15.08.1947 and his/her children and grand children, provided his/her country of citizenship allows dual citizenship in some form or other under the local laws, is eligible for registration as an Overseas Citizen of India (OCI). Minor children of such person are also eligible for OCI. However, if the applicant had ever been a citizen of Pakistan or Bangladesh, he/she will not be eligible for OCI.
  • Is it mandatory for a client to provide local (Indian) address?
    At the time of client registration, client needs to provide his/her foreign address along with documentary proof of the same. If a client so desires, local address can be maintained as correspondence address. In such scenario they are required to provide documentary evidence in support of local address also.
  • What are NRE and NRO accounts and what is the difference between them?
    A Non-Resident Indian is often faced with the situation of maintaining a Rupee account in India. Primarily there are two reasons for opening such account: NRI wants to repatriate overseas earned money back to India and/or NRI wants to keep India based earnings in India. NRI has the option of opening a Non Resident Rupee (NRE) account and/or a Non Resident Ordinary Rupee (NRO) account. An NRO account can also be opened by a Person of Indian Origin (PIO) and an Overseas citizen of India (OCI). Similarities between NRE and NRO accounts: Both accounts can be opened as Savings as well as current accounts and are Indian Rupee accounts. The Differences between NRE and NRO accounts:
    Repatriation: NRE account is freely repatriable (Principal and interest earned) while the NRO account has restricted repatriability i.e. permitted remittance allowed from NRO is up to USD 1 million net of applicable taxes in a financial year after giving undertaking along with a certificate from a chartered accountant.
    Tax Treatment: NRE account is Tax free (no Income tax, wealth tax and gift tax) in India. On the other hand the interest earned in NRO account and credit balances are subject to respective income tax bracket and are also subject to applicable wealth and gift tax.
    Deposit of Rupee funds generated in India: If an NRI/PIO/OCI is earning income originating in India (such as salary, rent, dividends etc.) he/she is only allowed to deposit it in NRO account. Deposit of such earnings is not permitted in NRE account.
    Joint Holding: NRE account can be jointly held with another NRI but not with resident Indian. On the other hand NRO account can be held with NRI as well as resident Indian (close relative) as defined under Section 6 of the Companies Act 1956.
    Choose NRE accounts if you: (Primary reason) want to park your overseas earnings remitted to India converted to Indian Rupees; want to maintain savings in Rupee but keep them liquid; want to make a joint account with another NRI; want Rupee savings to be freely repatriable.
    Choose NRO account if you: (Primary reason) want to park India based earnings in Rupees in India; want account to deposit income earned in India such as rent, dividends etc; want to open account with resident Indian (close relative).
  • What is FCNR account?
    An FCNR (Foreign Currency Non Resident) account is a term deposit account that can be maintained by NRIs and PIOs in foreign currency. Thus, FCNRs are not savings accounts but fixed deposit accounts.
  • Can two separate accounts (NRE and NRO) be opened by NRI simultaneously?
    Yes, clients can have both NRE & NRO accounts simultaneously.
  • Can an NRI maintain multiple accounts with different banks in India, simultaneously?
    Yes, there is no prohibition to open and maintain multiple accounts.
  • Can an NRI open joint accounts with one or more NRIs?
    Yes, NRE accounts can be jointly held with other NRIs.
  • Can an NRI open joint accounts with residents?
    Yes, NRIs can open Joint NRO Account with Resident Close Relative as defined in Companies Act 1956.
  • Should all the NRI desirous of opening joint accounts be residing in the same country?
    No, they can be residing in different countries, also.
  • Can NRI accounts be opened from abroad also?
    Yes. An NRI can also open accounts from abroad by sending duly filled and signed AOF(account opening form) duly attested by Indian Consulate along with attested copies of passport and Visa, and other mandatory documents.
  • Can an NRI open an account with Zero balance?
    Yes, an individual taking up an employment, business, vocation etc. can complete the account opening formalities prior to going abroad with zero balance. Subsequently, he must remit funds to make the account operative within a reasonable time, where after only cheque book will be issued.
  • Can an NRI give Power of Attorney to a resident to operate his accounts and for making investments on his behalf?
    Yes, an NRI can appoint a Power of Attorney holder to make local payment from his NRE / NRO accounts and also investments on his / her behalf.
  • What are the restrictions imposed on the Power of Attorney?
    A Power of Attorney holder cannot do the following acts.
    Open and close NRI accounts in the name of NRI.
    Repatriate funds from a/c in the form of DD/TT etc. unless specified in P.A.
    Give gifts.
    Transfer funds to NRE accounts other than that of Principal.
    Cannot raise loans/execute documents on behalf of NRI.
    Cannot tender Foreign Currency (FC)/Foreign Currency Traveller Cheques (FCTC).
  • How much foreign currency (FC) can an NRI bring along with him on his/ her visit to India, without custom declaration form (CDF)?
    An individual NRI can bring USD 10,000/- or equivalent (in the form of FCTC /FC) of which maximum USD 5000/-can be in the form of currency notes without declaring the same in CDF. Any amount in excess of the above limits needs to be declared in CDF to the customs. The balance amount or even the entire amount can be in the form of TCs.
  • Can an NRI deposit local funds into NRE account?
    No, only credits coming from abroad in the form of DDs/TTs/MTs/FCs/TCs etc. can be deposited in NRE a/c. Local money has to be credited to NRO account of an NRI.
  • Is interest earned on NRE/NRNR/FCNR/NRO a/cs. taxable?
    No tax is applicable to interest earned on NRE/FCNR & NRNR a/cs. However, interest earned on NRO a/cs is subject to TDS as per extant guidelines.
  • What is the rate of TDS on NRO accounts?
    Banks have obligation under Income Tax Act to deduct tax at source in respect of interest income of Non Resident Indians. The rate of TDS is specified in the Finance Act, every year. Accordingly as on date TDS applicability is as under-
    Interest earned upto Rs. 10 lacs TDS@ 30.90%
    Interest earned beyond Rs. 10 lacs TDS @ 33.99%
    Before you make your investment in Indian mutual funds, being an NRI, you need to know that the gains that you make on your mutual fund investments are subject to tax. You need to be aware of what tax rate will be applicable on short term as well as long term capitals gains on your investment in equity and non-equity mutual funds.
  • Is interest on NRO account repatriable?
    Yes, interest earned on NRO a/cs. can be repatriated or credited to NRE/FCNR accounts subject to payment of tax.
  • Is nomination permitted in NRI a/cs?
    Yes, NRIs can nominate either a resident or a non-resident as Nominee. However, only one nominee is permitted per account. Nominee can also be a minor in which case, guardian has to be appointed to receive payment on minor`s behalf.
  • What are the formalities in death claim settlement?
    If the nominee, either resident or non-resident, plans to utilize the funds locally, payment will be made in Indian Rupees. If, however the nominee is an NRI and desires to repatriate the amount, the nominee will have to comply with certain formalities as prescribed by respective banks.
  • Can NRI invest in immovable properties on repatriation basis?
    Yes, Repatriation benefit is available for 2 residential houses. The purchase should be out of funds remitted from aboard or out of NRE/FCNR a/cs, in accordance with the provisions of FERA/FEMA.
  • What happens to accounts of the NRI on his/her return to India?
    A returning Indian`s NRE/FCNR accounts will be designated as Resident account. However, they will continue to run till maturity at the contracted rate of interest.
  • Is a NRI subject to tax after returning to India?
    Yes, NRIs earnings are subject to tax laws of the country.
  • Can a returning Indian maintain Foreign Currency account?
    Yes, the returning NRI can get his NRE, FCNR a/cs converted into RFC (Resident Foreign Currency) a/cs on maturity.
  • Who can open RFC account?
    A returning NRI who was resident outside India earlier and are returning now for permanent stay are permitted to open RFC account.
  • What are the benefits of RFC accounts?
    The benefits of RFC accounts are: In case of conversion from FCNR(B) accounts there is no exchange loss.Balance in RFC account can be used for local payments and can be remitted abroad for all bonafide purposes.In case the NRI was residing abroad continuously for a period of 9 years out of previous 10 years, then there will be no tax on interest earned on RFC accounts for next 2 years. In the event of the returning Indian regaining NRI status, the balances in RFC account can be reconverted into NRE /FCNR (B) deposits.
  • Can an NRI transfer funds between NRE accounts?
    Yes, the funds can be transferred between NRE or FCNR accounts of an account holder and also between NRE or FCNR accounts of two different NRIs, ie, the funds lying in NRE or FCNR accounts of an NRI can be freely transferred to NRE or FCNR account of any other NRI.
  • Are NRE or NRO account holders eligible for loans or overdrafts against their fixed deposit/Investments?
    The NRO or NRE account holders are eligible to apply for loans or overdrafts against their fixed deposit holdings and Investments.
  • What foreign currencies can one maintain in FCNR accounts?
    Prior to 2011, FCNR deposits were allowed to be maintained in six currencies: US dollar, Pound Sterling (GBP), Euro, Japanese Yen, Australian dollar and Canadian dollar. However, in October 2011, the RBI decided that authorised dealer banks in India may be permitted to accept FCNR deposits in any permitted currency. "Permitted currency" for this purpose would mean a foreign currency which is freely convertible and popularly include Danish Krone, Swiss Frank and Swedish Krona among others.
  • How can one transfer funds to FCNR accounts?
    The funds in an FCNR account must necessarily come from your overseas funds. There are several ways in which you can open an FCNR account.
    You can transfer funds from your overseas bank account directly to open an FCNR account. You can do this either as a wire transfer or a cheque transaction.
    You can transfer funds from an existing NRE account.
    You can open an FCNR account using foreign currency notes or travelers cheques when you visit India.
  • Are balances in the FCNR accounts freely repatriable?
    Yes, balances in FCNR can be freely repatriated outside India.
  • Can funds in the FCNR account be used for local India payments?
    Yes, you can use the balance in FCNR account for making local payments in India.
    However, as FCNR can be maintained only as term deposits, it would be more convenient to make payments after transferring the balance to NRE account.
  • Can you hold FCNR accounts jointly?
    Yes, the RBI permitted NRIs to hold FCNR accounts jointly with other NRIs or with residents who are close relatives. In this case, the resident relative can operate the account as a power of attorney holder.
  • Is nomination facility available?
    Nomination facility is available in FCNR accounts and the nominee can be either an NRI or a resident Indian.
    The balance in FCNR deposit of a deceased NRI can be credited to an NRI nominee`s FCNR account and such funds can be freely repatriated.
  • Can NRIs avail loans against FCNR deposits?
    Rupee loans and foreign currency loans can be taken in India against the security of the deposit. Banks may also give loans to resident individuals, firms or companies against collateral security of FCNR deposits.
  • How can NRIs/PIO remit Sale proceeds?
    In case of NRI/PIO, if the mutual funds sold were held on repatriation basis, the sale proceeds (net of taxes) may be credited to his NRE /FCNR (B)/NRO accounts of the NRI/PIO, whereas sale proceeds of non repatriable investment can be credited only to NRO accounts.
  • In case a person who is resident in India becomes a non-resident, will he/she be required to change the status of his/her holding from Resident to Non-Resident?
    NRI can continue to hold the mutual funds which he/she had purchased as a resident Indian, even after he/she has become a non resident Indian, on a non-repatriable basis.
  • In case a non-resident Indian becomes a resident in India, will he/she be required to change the status of his/her holding from Nonresident to Resident?
    Yes. It is the responsibility of the NRI to inform the change of status to the RTA,. Subsequently, a new account in the resident status will have to be opened, and bank mandate be moved to a resident account. For any such queries, MoneyFront Team will help you with all associated formalities and ensure a seamless transition.
  • Are NRIs permitted to invest in Commercial Paper (CP) issued by Indian companies?
    Yes. General permission has been granted by Reserve Bank to Indian companies to issue CP to NRI individuals subject to the conditions that the amount invested will not be repatriated outside India and the CP will not be transferable.
  • What are the benefits for NRIs to invest in India?
    The India Shining story is something we have all heard in the past. India has managed to slowly and steadily outperform the rest of the emerging nations, proving that as an investment destination, we need to look no further than our own home country to help us plan for and achieve our life`s financial goals.
    A Mutual Fund would be a safer bet compared to direct equity for a foreign investor who has limited expertise. For an NRI, no specific approval for investing or redeeming from mutual fund is required. At Moneyfront we make investments completely hassle-free and paperless for all NRs. Plus our user-friendly and customized Portfolio section will make it comfortable to manage, report and consolidate investments across family members. However, residents of USA/Canada are not allowed to invest currently.
  • What is repatriable basis?
    To invest on a repatriable basis, NRI investor must have an NRE or FCNR Bank Account in India. The Reserve Bank of India (RBI) has granted a general permission to Mutual Funds to offer mutual fund schemes on repatriation basis, subject to the following conditions :
    The amount representing investment should be received by inward remittance through normal banking channels, or by debit to an NRE / FCNR account of the non-resident investor.
    The net amount representing the dividend / interest and maturity proceeds of units may be remitted through normal banking channels or credited to NRE / FCNR account of the investor, as desired by him subject to payment of applicable tax.
  • What is non repatriable basis?
    The Reserve Bank of India (RBI) has granted a general permission to Mutual Funds to offer mutual fund schemes on non-repatriation basis, subject to the following conditions :
    Funds for investment should be provided by debit to NRO account of the NRI/ FII investor. Alternatively, funds may be invested by inward remittance or by debit to NRE / FCNR Account.
    No permission of Reserve Bank either by the Mutual Fund or the NRI investor is necessary.
  • What is the proof of tax deduction at source?
    A TDS certificate is issued in the name of the unit holder mentioning the details of the transaction and the tax deducted. TDS certificate is commonly known as Form 16 A. This is sent by the Fund Houses directly at the correspondence address of the investor.
  • Is the indexation benefit available to NRIs?
    Yes,indexation benefit is available on long term capital gains arriving out of debt funds (Please refer to current tax guidelines on this).
  • Can a POA invest on behalf of NRI investor?
    Yes a registered POA can invest in mutual funds on behalf of investor and sign documents for initial and additional purchases as well as redemptions. His signature will be verified for any transaction request. However, at MoneyFront we currently don`t have an option to register POA and accept investments through them.
  • Why should I transact online rather than doing investments with my current bank?
    Mostly all banks offer mutual fund schemes to their customers. However, your current bank will only offer Regular Plans of Mutual Funds. Regular plans, have higher expense ratios as compared to Direct Plans because a large portion of this expense ratio is paid-out to bankers/distributors as in-built commission, popularly called as "Trail Fee". You pay this hidden commission apart from entry and exit loads on schemes. Online platform Moneyfront offers you investment ONLY in Direct Plans of all mutual funds which saves you this in-built commission. Also, since we are not earning out of fund houses, the recommendations we provide are free of bias. Banks will require a lot of paperwork to be done before you can actually start transacting and also for every transaction that you make. However with Moneyfront you can start investing in a paperless manner as soon as you open an account.
  • Do I need to be physically present in India while investing with Moneyfront?
    No, investors need not be physically present in India if they want to make an investment. With our website and mobile app you can transact from anywhere across the globe.
  • Will I have someone to meet or talk to discuss my portfolio at Moneyfront ?
    Moneyfront is an online platform and everything from our recommendations to detailed scheme details are available online. However, if you every wish to speak with someone, our online relationship managers will be happy to assist you. You can mail us at info@moneyfront.in or call us on +91.22.41202615 and we shall gladly assist you.
  • Does RBI permit NRIs to invest in mutual funds?
    Yes, RBI allows NRIs to invest in mutual funds in India. However the investments can only be made in INR (Indian Rupees). Hence NRIs need to ensure that they have either NRE or NRO accounts through which payments can be made for buying and selling mutual funds. Your bank mandate with Moneyfront needs to be a rupee account held in an Indian bank.
  • Will Moneyfront help me with taxation on my mutual fund portfolio?
    No, Moneyfront does not offer any help with tax filing or computation as, clearly, we are not tax experts. We are an online investment platform and offer investment advisory services.
    However, to make your tax-filling and computation simple and hassle-free we have a Gain/Loss report section which will clearly give details on all your short-term and long-term gains/losses across asset classes. You just need to download these reports which will give you all details. It will always be prudent to get these verified by your accountants/tax advisors once.
  • Can I invest in foreign currency on your platform?
    An NRI cannot make investment in foreign currency as per central bank guidelines. He needs to give a Rupee cheque or debit instruction from his NRE, NRO bank account in India. For an NRI to invest, it is mandatory that he maintains a bank account in India.
    For making investments through Moneyfront, please set up a bank mandate which is either an NRE or NRO account in India.
  • Do I run a currency risk on my portfolio when investing in India?
    If your end-goal is to repatriate back your investments & returns then currency risk is applicable to you. However, if your end-goal is to create a corpus in India by income earned in India or from funds lying in INR, then currency risk might not be applicable to you.
    Assuming, it`s the former case where you are investing via NRE account and intend to repatriate back the proceeds, then by choosing to invest in Indian rupee instruments such as mutual funds, you are taking currency risk. Rupee depreciation against your local currency will have a negative impact on your returns. If you are a long term investor, then simply pick good schemes and stay invested for a few years. The rupee may fluctuate in the short to medium term, but over a period of time, if the Indian economy continues to grow at a pace relatively higher than the global average, currency will also adjust itself. If on the other hand you tend to book profits every few months, then you should take into account currency risk.

SUPPORT

  • How can I register on Moneyfront?
    Click on Sign-up link on the website.
    Whenever you want to start investing on Moneyfront, you would need to complete your full registration which would not take more than few minutes of your time. Please make sure you have a scanned copy of your PAN Card & cancelled cheque ready with you, as you will need to update the same before transacting.
  • How can I retrieve my user id or email id used for registering on Moneyfront?
    Kindly write to us at info@moneyfront.in alongwith your details and we shall help you with same.
  • How can I retrieve my password?
    Click on Login link on the website. On the bottom of the screen you would find the FORGOT PASSWORD link. On this page you would need to enter your registered and valid email id. A link would be sent to the registered email id. You need to click on the same and provide a new password.
  • Will you tell me which mutual funds to invest in?
    Yes, Moneyfront advises you to invest as per your risk appetite. Your model portfolio is scientifically arrived at and suggests you which schemes to invest in along with % allocation across assets, categories & schemes.
  • Do you have any mobile app?
    Yes, our app is available for android platforms and can be easily downloaded from the Playstore. We are in the process of launching our iOS application shortly.
  • How frequently do you monitor my portfolio?
    Daily updation of NAV is done and your portfolios are tracked daily against the benchmark. Moneyfront also shows you the deviation of your current portfolio from the model portfolio on a daily basis. Our model portfolios & recommended schemes will be updated once every quarter for every risk profile.
  • As it is online portal, do you provide 24/7 customer support and live chat support?
    No, we are not available 24/7. However, you can leave your query with us anytime and we shall address it at the soonest possible. Our work timings are morning 9:30 am to 6:00 pm (Monday to Friday) and we shall endeavor to respond to your query within these timings as per the defined TAT.
  • I tried to pay for an investment online using net banking. The transaction did not seem to complete successfully. However, the amount has been debited from my bank account. What happens now?
    Our online payment gateway Billdesk usually works without any issues. But on rare occasions, such problems may crop up. In this case the money will be put back in your bank account within two business days. If this does not happen, please let us know, and we’ll follow up with your bank on your behalf.
  • I filled my KYC application form, sent it to you, and it was processed. However, when I download my investment statement from AMCs, it says that my KYC is not completed. Why is this happening?
    It does not necessarily indicate that you are not KYC compliant. Please note that CVL which monitors KYCs is the main checking point. The updation from AMC s may happen only from time to time and hence this issue may arise. CVL India also updates KYCs at regular intervals only hence it may take some time to show that the KYC is complete. You can directly verify your KYC status anytime by putting in your PAN details on the CVL website. Link is: https://www.cvlkra.com/kycpaninquiry.aspx