At CAGRfunds, we help you to invest in “Regular Plans” of Mutual Funds. As such, we earn commissions from the AMCs (Asset Management Companies) based on the value of investments that we facilitate. The commissions that we get are just one of the many components of the “Expense Ratios” of the funds. Since we get our revenues through commissions, we do not charge our clients anything.
Why we deserve what we earn?
First things first. There are no free lunches. So next time someone gives you free advice (for no consideration whatsoever) be extremely careful about betting your money on advice that has no ownership.
Expense ratios are essentially a part of earnings that are deployed towards fund expenses. Since our commissions are a part of it, we feel extremely responsible to add enough value to justify our revenues. Following is how we consistently add value to our clients:
Behavioural education – We believe that investing is more about your inherent behaviour and less about identifying the “best funds”. As normal people who are not rational at all points in time, we tend to take misguided decisions when it comes to money. Most investors often wonder when is the right time to sell as soon as markets start getting volatile. Therefore, we spend a huge amount of time educating our clients about various aspects of investing, inherent biases that they should be avoiding, the correct approach and the ideal way to plan. Throughout your investment journey, there will be times when you will need expert guidance about what action or decision they should take (A lot of our existing clients call us to ask if they should purchase XYZ policy that their bank RM has been pushing them for). And that is where we step in. So while, our very simple platform takes care of executing your transactions, we proactively take care of every small action that remains to be a humanised and personalized service. We strive to be the financial partners of our clients throughout their investment journey. We believe in being approachable and responsive to their requirements. Indeed, a human voice and a face to talk to always helps.
Customized fund recommendation – We understand that each person has different needs, objectives and preferences. Since we do not offer any standardized algorithms, our fund recommendation is purely customized to your suitability. With us, you, therefore, do not run the risk of being misguided by fund rankings and recent returns. This is extremely crucial as your objective is to meet your financial goals by investing in the most suitable funds.
Asset Allocation and rebalancing: At the start of any investment, we put down the target asset allocation of the investor. This target allocation depends on the age, investment objectives and risk profile of the investor. At the end of every year, we compare the target allocation with the current asset allocation and recommend a suitable action. The investor can either choose to follow the recommendation or set a new asset allocation target. In addition, we also proactively suggest any changes that may be required in your portfolio due to fundamental changes in fund attributes (For example, a change in fund manager may have a considerable impact on the future performance of the fund). We, therefore, spend a lot of time reviewing each portfolio in the utmost details. We, therefore, ensure that your money is optimally invested at all times.
Tax Planning: We help our investors with tax planning in multiple ways
- Recommend the most suitable tax saving mutual funds under section 80C
- Comprehensive Tax Reports which inform the investor what proportion of his corpus has become tax-free and what proportion is liable to taxation. This comes extremely handy at the time of filing returns as investors prefer a ready reckoner of what is their tax liability
- Notification of tax liability on redemption (Coming Soon): Often times, investors tend to redeem funds oblivious to the tax liability it creates. We have therefore started intimating our investors on whether their redemption amount is subject to taxation or not. This is extremely helpful when there are tax-free avenues for redemption which can be utilized first
- NPS Account opening and investment