Long Term Investment
Investment in Nifty50
Combination of Equity & Futures
Hedging against market fall
Low risk profile
No Lock-in Period
Corporate Treasury Investment Strategy
Strategy for corporates having investible funds
Objective
Safety
Investment in Index with leverage and hedging to minimise the risk on fund.
Liquidity
A comfort to add or withdraw funds at any time with easy process.
Control
Total investment in your account. No NBFC involvement. Control in your hand.
Growth
Get advantage of India's growth by investing in the most promising Index.
Characteristics of the Strategy
Investment Flow (Indicative Example)
Two Parts of Investment
- 1st Part
- Invest in Nifty Futures
- Hedge with Put Options
- 2nd Part
- Park Money in Debt
- Get Interest equivalent to Cost
Cost Calculation
*As per above example
Past Performance
Overall Impact:
- When the market rises: Profit
- When the market falls: Low Risk
Past Performance:
- XIRR on Investment: 15.28%
- Drawdown on Exposure: 0.00%
Benefits of Strategy
- Low risk if market falls
- Equity Returns
- Full Liquidity
- No NBFC involvement
- All money in your account
For Whom?
Corporates having investible funds for more than a year & having faith in Indian market growth
Our Charges
| Exposure Value | AMC* |
|---|---|
| Below 1 Crore | 0.75% |
| 1 Crore to 5 Crores | 0.625% |
| 5 Crores & above | 0.50% |
* AMC on exposure value for 6 months
* GST Extra
Frequently Asked Questions
The minimum investment requirement is Rs. 7.5 Lakhs
The equity Investment portion will have Long Term Capital Gain and Derivatives income will be taxed as Business Income.
You can use only cash investment or debt funds in this strategy.
Yes. You can withdraw funds wherever you want.
No. Looking at the volatility of market, cost of Put Options are very reasonable.
Individual,
HUF,
Partnership Firm,
Corporates,
Trust,
NRI – NRO etc.
Yes, NRI can invest in Index Long Term Strategy using NRO Account.
No. If the cost of financing is lower compare to returns on investment, then it is good to have financing in Investment as it will increase your returns on Equity.
No, this strategy is having 3 simple steps.
- Invest funds in debt
- Take Exposure in Index Futures
- Use of Put Options to protect downside unlimited Risk
So Equity + Futures + Puts = Corporate Treasury Investment Strategy.
It is depending upon what kind of trade an Investor does. This strategy does not believe in Speculation as it takes full hedges.
No. Finideas is a SEBI approved Investment advisor. We provide Advisory after having your risk profiling and KYC. We will recommend to 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 platform 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 Demat account.
- Trades will be done in your account
- No Lock-in Period
- You will get all the detail of your transactions
- You can set your maximum loss criteria
- No Entry / Exit Load
- Benefits of Leverage.
Corporates having investible funds for more than a year & having faith in Indian market growth