Introduction
- Invest in Nifty50 Index
- Low-cost Leverage through Futures
- Hedging with Options
- Wealth grows with market growth
- Secured against market falls.
INDEX LONG TERM STRATEGY
Why Index?
- Average of top 50 companies.
- Never become zero
- Growth in a long term
Equity + Safety = Prosperity
- Hedging through Options.
- Options provide protection
- Calculated risk downside
- Unlimited profit upside
Investment Plans
- Three Investment plans
- Payment options
- Current portfolio can be used
Systematic Withdrawal
- People can opt systematic withdrawal plan.
- Regular income option available
- Good for retirement plannig
- Growth in a long run
Minimum Investment & Cash Flow
- Minimum Exposure is Rs.9 Lakhs
- Minimum Investment is about Rs.1 Lakh/ 3 Lakhs / 9 lakhs in different plans.
- SIP options available
For whom & selection of Plan
- For Investors who…
- Can invest for the long term
- Have faith in India’s growth
- Not for people who want to earn from intraday / short term trading.
Fees & Commercials
- Investment in your own account
- Competitive advisory charges
- Pay on a Semi-Annual basis
Comparison with Direct Equity
- The portfolio is protected downside
- Similar returns upside
Why to Buy Protection?
3 Advantages of Protection
- Protection of portfolio
- Averaging of cost
- Growth with the market rise
Benefits of the Cost incurred
- Cost creates benefits.
- Easy Survival in difficult times.
Frequently Asked Questions
- Is it the right time to invest money?
- Yes
- Can we switch the plan in between?
- Yes
- Can NRI also invest?
- Yes
Conclusion
- Investment with low-cost leverage & hedging
- Complete your KYC for free
- Only 10 minutes to complete KYC
- Get your financial planning portal
- One to One meeting after KYC
FREQUENTLY ASKED QUESTIONS
You can start investing with the following two options :
A. Rs. 5.5 Lakhs = Lot Size * Nifty Price
B. Rs.1.7 Lakhs, If you invest in Debt somewhere else.
Equity Investment portion will have Long Term Capital Gain and Derivatives income will be taxed as Business Income.
Yes, You can use your current holding of Equities and Mutual Funds in this strategy using power booster plan
Fee structure for six months are as follows:
Portfolio Size AMC %
Below Rs.1 Crore 0.75%
1 Crore to 5 Crores 0.625%
5 Crores and above 0.50%
*GST Extra
Yes, the customer can design his strategy with SWP Option.
Cash flow in Relax Plan
- Invest 100% now
- Pay AMC every six month
Cash flow in Basic Plan
- Invest 30% now
- Invest Hedging & Financing cost every year
- Pay AMC every six month
Cash flow in Power Booster Plan
- Invest 10% now
- Pledge 30% Stock / MF portfolio as collateral
- Invest Hedging & Financing cost every year
- Pay AMC every six month
Cash flow in Comfort Plan
- Invest 50% now
- Invest Hedging & Financing cost after 3 years
- Pay AMC every six month
Comfort plan requires a 50% fund investment in your trading account to avoid the need for SIP for three years.
You can either trade by yourself or let us handle the execution for you at no extra cost.
Hedging is done annually, while futures timing varies based on opportunities and financing costs.
Yes, you have to invest money in fixed lots. Current lot size of Nifty Index is 25. So the value of one lot comes near Rs.5 to 6 Lakhs.
No, Looking at the volatility of market, cost of Put Options are very reasonable.
No, If cost of financing is lower compare to returns on Investment, then it is good to have financing in Investment as it will increase your return on Equity.
This strategy is having 4 simple steps.
- Trades in Index Equity and Futures
- Use of Put Options to protect downside unlimited Risk
- Use of Futures to take advantage of the low cost of Financing
- Put the rest of the money in debt.
So Equity + Futures + Puts +Debt = Index Long Term Strategy
Futures & Opions are the only instruments that can provide limited / calculated risk
No, Finideas is a SEBI approved Investment advisor. We provide Advisory after having your risk profiling and KYC. We will recommend you what to trade from time to time as per your Investment profile.
We have a list of few members of exchange having an algorithmic platforms or another trading platform to execute this strategy but there is no compulsion to trade through any specific member.
Your stocks and positions will be kept in your trading account and DP account.
In Index Long Term Strategy
- Under the perview of SEBI
- Trades will be done in your account
- No Lock in Period
- You will get all the detail of your transactions
- No Entry / Exit Load
- Benefit of Leverage
Add one more question and put it after Power Booster question and also keep the flow like Relax then Basic then PB and Comfort
Individual,
HUF,
Partnership Firm,
Corporates,
Trust,
NRI – NRO etc.
Yes, NRI can invest in Index Long Term Strategy using NRO Account.
SIP covers annual protection costs and adjusts hedging based on index fluctuations. Monthly SIP is recommended, lump sum SIP is also allowed but not advised.
Yes, You can use your current holding of Nifty50 ETFs. We invest 30% in an ETF, so we can use the ones you hold. Notify us in advance about the quantity.
Yes, you can sell it. Proceeds become the margin in your trading account. Notify us before selling, no sale restrictions.