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Passive Investment Solutions

This Strategy is aimed for individuals who track a certain index like Nifty, Sensex, Gold, Call money rate, 10 year bond yield, Junior Nifty index, etc. and want to generate returns linked to movement in the index. Our passive Investment solutions aim at suggesting specific investment strategies in index based instruments which track returns of a specific index. As the expense ratio of these instruments is very small compared to active managed mutual funds, an investor can save money using these strategies.

We have models which provide monthly allocation to the indices based on their relative attractiveness. An investor can invest based on our allocation proportions or can follow his own investment methodology.

We use the following parameters to identify monthly allocation to equities.

parameters

Minimum Starting Amount (for this strategy)

Investment Amount
Lumpsum Investment 25,000
Monthly Systematic Investment Plan (SIP) 5,000

Tax Treatment

Instrument Short Term (Upto one year holdings) Long Term (More than one year old investments)
Money Market funds Taxed as per individual tax slab In case od dividend distribution, 28.33% on the returns generated 10% without indexation OR 20% with indexation, plus applicable cess
Equity Index Funds 15% Zero
Gold Funds As per individual tax slab 10% without indexation OR 20% with indexation, plus applicable cess