Frequently Asked Questions (FAQs) | Craving Alpha

Why should I invest with you?

The Investing Foundations have always been the same. We add experience, perception and conviction to build-up on the same foundations to consistently generate alpha in a volatile ever-changing environment. But, never before have so many people lost so much owing to the few entrusted.

An attempt to getting professional wealth management accessible by retail clients who often find themselves paying more fees than generating returns.

How can I invest with you?

You can invest in our strategies via our model portfolios published on the smallcase platform as long as your broker is registered with the smallcase app.

What is the minimum investment required?

Minimum investment is a function of the portfolio allocation and stock constituents.

  • Let's assume a stock in the portfolio is required to constitute 10% of your portfolio and is currently trading at 1,000. So in this case you will need to invest at-least 10k, similarly the highest amount required would be the minimum investment needed for the respective portfolio. Since market prices are ever-changing the minimum investment will also change.

  • Minimum investment is different for each of our fixed fees portfolios- roughly ranging from 50k to 1.75lk

How do you charge your fees?

Depending on which product you choose to invest in, you would be charged fixed fees or variable fees:

  • Fixed Fees- Charged monthly from the beginning of subscription, you may choose between a "one-time" or an "auto- renew" option. Investment in "fixed-fees" portfolio is capped to a maximum investment limit.
    Portfolios with Fixed Fees -
    Sector Advantage, Index Advantage -v2 and Core

  • Variable Fees- Charged at 1/12th of the fees displayed at the end of every month on the average value of the portfolio for the respective month.
    Portfolios with Variable Fees -
    Chandrahas and Indravajrah.

Mandate required for "Variable Fees" and "Auto- Renew"

Do you have a lock-in?

NO !

There is no lock-in period or an exit load etc while investing via us. Incase of a fixed fee you only pay for the respective month and renew it the next month only if you choose to.

Incase of a variable fee- you only pay for the number of days you have invested.

What is the treatment of TAX?

All stock markets gains are taxed as Capital Gains at 15% as STCG if held for less than 12 months and at 10% as LTCG (above One Lakh), if held for more than 12 months.

For better understanding let's take an example where you invest in a portfolio with 10 stocks. During the year assume we sell all shares of 1 of the companies in the portfolio at a 10% profit. So you would be required to pay STCG on that 10% at the rate of 15% (or 0.15% of your total investment). While, for all other stocks that you have held for over a year you would be liable to 10% of the profit on them- whenever you sell them in the future.

Which of your portfolio is apt for me?

Does the portfolio have more legs ?

We strongly believe past performance is not an indicator of future performance. The future may be better or worse than the past.

However, we strongly believe a portfolio should be judged on the value proposition it offers at the time of investing.

The best indicator of "Value" is the PE, PB and Dividend Yield the portfolio offers. Each of these stats is available on the webpage of the respective portfolios.

When should I invest ?

We strongly believe in Time in the market > Timing the market; Hence each of our portfolios are designed for you to be able to invest money any time you wish for.

Rebalancing over a Predefined Duration ensures that poor-performing companies are weeded out while stronger companies are kept on.

Stock Allocation within the portfolios are also churned to make sure optimal diversification and reduced concentration risks.

For how long should I stay invested ?

"Our Favorite Holding Period is forever" -Warren E Buffett.

We believe wealth generation through compounding is only plausible through longer holding periods and hence we feel you should only investing as much into our portfolios as you would not need for at-least a year.

Do we need to put a stop loss, what happens in the event of a major market correction ?

We do not have any recommendation on such stop loss or GTT, since there's none available for the portfolio in entirety.

While, for selective stocks we aim to achieve optimal risk/return allocation via the weekly rebalance (as in the case of your respective portfolio).

In any case should you choose to place such stop loss or GTT etc, that's a call you have to take on your own.

We recommend a longer term holding period and strongly believe that our diversification and portfolio allocation is doing its best to hedge you in an event, nevertheless one can never be too certain in a trade as volatile as ours- hence we send each onboarding subscriber a range of capital allocation to the respective portfolios- which we feel is what they would be comfortable with.

to explain: Let's assume you've invested in the Chandrahas portfolio, are invested in a portfolio with 20 stocks- which aim to diversify your risk. Assuming your investment is 30% of your NW

Scenario 1 : An adverse event takes place in a stock, causing us to not be able to exit- your loss would be limited to the %allocation to that stock x 30% (viz- assuming you have 15% of the portfolio in that stock, your max loss is limited to 4.5% of your Net Worth)

Scenario 2 : An adverse event impacts a sector/ group, should you notice we have a cap on sector/ group with high volatility of around 30%, in that scenario your max loss would be limited to 09% of your Net Worth- in case we are unable to exit from it.

Scenario 3 : An adverse event that impacts the entire market- though would limit your max loss to your entire exposure of 30%. Though as seen in the past, to not exit in such scenarios has proven to be wiser.

Having said that should you wish to place any stop loss or GTT orders in stocks of companies held by you, please feel free to do so.