Frequently Asked Questions (FAQs) | Craving Alpha
Why should I invest with you?
How can I invest with you?
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?
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.