FAQ

Insights about Moneyfrog.in Mobile App and App users

Mobile-app-insights

We were recently contacted for answering fin-tech questions related to Mobile apps. Below are questions answered by our  Founder & CEO- Manoj Chahar.

1) How many of your users (percentage terms) use the app?

Moneyfrog Mobile-App is used by all our customers (100% usage), averaging once a week, with count going higher per week, whenever the market is volatile.

2) Do you see the app usage increasing in coming times?

YES. With changing lifestyle and increased smartphone penetration, the Mobile-App’s will take precedence over web& human-touch. And with smart functionalities like alerts, reviews, notifications, advisory chat & many more new-age features, usage will only multiply. For instance, chat-bots will supplement human-touch for mundane tasks.

3) What are the benefits of investing through the app as against on the web?

None. Investing (execution – buy/sell) thru Mobile-App is a fad or just a marketing gimmick. One needs to understand, investing is unlike buying a smartphone thru e-commerce sites, or even need based financial products, like insurance (term/car) or loans.

Mobile-App complements (or adds value) to the investment account, thru the value-adds like funds tracking, alerts, notifications, advisory chat, reviews etc. Also investing in Mutual funds (buy or even sell) is a one-off process, which is like once (or few times) in a year. Therefore, execution services thru Mobile-App is just not an attraction, it’s one of the features. (more…)

Frequently Asked Questions (FAQs) – Taxation of Long Term Capital Gains (LTCG)

FAQ
  1. What is the meaning of long term capital gains?
    Long term capital gains mean, gains arising from the transfer of long-term capital asset. The Finance Bill 2018 proposes to provide for a new long-term capital gains tax regime for the following assets:

    • Equity Shares in a company listed on a recognised stock exchange;
    • Unit of an equity-oriented mutual fund; and
    • Unit of a business trust.

    The proposed regime applies to the above assets, if the assets are held for a minimum period of twelve months from the date of acquisition.

  2. When will the tax be levied?
    The tax will be levied only upon transfer of the long-term capital asset on or after 1st April 2018.
  3. What is the method for calculation of long-term capital gains?
    The long-term capital gains will be computed by deducting the cost of acquisition from the full value of consideration on transfer of the long-term capital asset. (more…)

Can I trust Robo-Advisors?

Can-I-trust-Robo-Advisors

My clear answer is a big NO, i.e. one cannot trust a Robo-advisor.

Robo-advisors are nothing but computer programmes or algorithms, which will first take inputs from you in the form of “sets of questions & filters”, and accordingly will populate various scenarios or “desired results”, as defined by the platform provider.

Now the question is, who are these platform providers, their credibility, what logic have they applied towards the programs? etc. No company will share their logic or how they have populated the results, but will have only “tall claims”, that they are the “best & trust-worthy”. One platform provider went to an extent to claim that, they have a “Nobel awarded algorithm”.

I went to some of the know platform providers, comprising of fresh players & traditional players (banks & brokers), all offering or using the term “Robo” & “the best advice”.

(more…)

NRI Investments – frequently asked questions

NRI investments

Can NRI invest in Mutual Funds? & how?
How can NRI shortlist Mutual Funds?
Can NRI repatriate redemption?
What are the tax applicability for NRI?

Can NRI invest in Mutual Funds? & how?

Yes, NRI can invest in Mutual funds, except for NRI from USA/Canada (with conditions).Due to different regulatory requirements in USA/Canada, NRI can only invest in Mutual Funds which comply to USA/Canada regulations.

Account opening/ Documentation for an NRI: To invest in Mutual Funds, investor must first complete the KYC (know your client) documentation, as per SEBI guideline, which involves copy & details of; (more…)

DIVIDEND PLANS – frequently asked questions

Dividen-Plan-FAQ

What are Dividend Plans in Mutual Funds?
Are Dividend Plans active due to rising market?
Who should opt for these plans? Does it help in Tax saving?

What are Dividend Plans in Mutual Funds?
The returns that an investor gets in a dividend plan, are of two types;

  • Value appreciation
  • Dividend

(more…)

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