Frequently Asked Questions

About Wealthy

About Wealthy

What is Wealthy.in?

Wealthy.in is (referred to as Wealthy for brevity) an online wealth management platform that offers consumers tools and products to manage their wealth. The platform is operated and maintained by Buildwealth Technologies Private Limited. Execution services across mutual funds and other investment products are offered by WealthyIN Customer Services Private Limited, an AMFI registered mutual fund distributor with ARN 106846. Wealthy is not an investment advisor and baskets available on the platform are incidental to our distribution business and should not be construed as investment advice.

How is Wealthy better than other mutual fund services?

Wealthy is better on three fronts. First, platform os completely paper-less and the experience you will have with Wealthy will be unmatched. Second, we have built superior technology which allows you to access your money anytime anywhere. Third, you can consolidate your mutual fund holdings in a single view using the tracking and consolidation tool. Finally, we have created baskets of pre-selected funds and strategies that reduce your research time and give you more confidence in the selection made by you.

Do I have to send any scans/courier any documents?

Nope. We are truly paperless.

I am already KYC verified, do I have to do this process again?

No. Wealthy doesn’t require you to do your KYC again. You can start investing right away if you are a KYC verified investor.

I have never invested before do I have to do special paperwork? How will you do my KYC verification?

If you have never invested before, you will have to go through a process called Know Your Customer(KYC). With Wealthy, this is simply taking a picture of your PAN card, Address proof and your signature on a blank piece of paper. You simply need to sit in front of your webcam to get this process done which takes less than 3 minutes.

What if Wealthy shuts down? Do I lose my money?

Your investment accounts are held directly with Mutual Fund companies and hence there is no risk of you losing money in case Wealthy shuts down. You can continue to invest more or redeem from your existing investments with any particular mutual fund company. However, it won’t be as easy as fun and as rewarding as it is with Wealthy. Moreover, we are not going anywhere, promise.

What is a mutual fund? How does a mutual fund work?

A mutual fund pools money from several investors to invest in stock market, government / private sector bonds and other asset classes. Investment decisions in these mutual funds are taken by financial market experts, called fund managers, whose job is to get the best returns for the funds collected. Mutual funds, like stocks, have a value attached to them. They are bought and sold in units. Just like you buy Rs. 1,000 worth of shares of a company, you can buy Rs. 1,000 worth of units of a particular mutual fund scheme. The value of a unit changes everyday and it is called NAV – Net Asset Value. There are more than 6,000+ mutual fund schemes in India and are regulated by Securities and Exchange Board (SEBI) of India.

How secure is my money?

Wealthy takes security of all its users, their data and transactions very seriously. All our systems are bank-grade secure and we have implemented a three-tier security structure where your data is secure in all three states – on server, at client and during the transit. Moreover, your money is directly sent to reputed Mutual Fund companies without the money ever hitting Wealthy’s bank account.

How does Wealthy make money?

Mutual Fund companies that you invest in via Wealthy charge a fund-management fee also called as Total Expense Ratio (TER). Typically, TER is in the range of 0.5-2.25% of your investments with a mutual fund. For execution facilitation and regular monitoring of your portfolio, the mutual fund companies share a proportion of TER with Wealthy. Typically the fees shared with Wealthy in the range of 0.25-1.25% of your total investment amount.

Are there any fees or charges to use Wealthy?

No, we don’t charge you anything to use Wealthy. All our services are absolutely free for users.

Do I get the proof that Wealthy has invested for me?

Your money goes directly to mutual fund companies and an investment account, identified with a unique Folio Number is opened directly with these companies. Post successful processing of your transaction, your investment proof and folio details will always be available on Wealthy dashboard. In addition, all mutual fund companies send the folio details and monthly statement on your registered email address.

How much time will it take for my investments to be processed?

If you are a KYC verified investor, payment made before 1pm on a working day will be processed the same day. If the payment is made after 1pm, then your investment will be processed on the next working day. Your investment details will be available on your dashboard in one full working day after your investment has been successfully processed. If your KYC verification is pending, your investment process will begin once KYC formalities are completed. Typically, it takes about 24 hours to process your KYC from the time of you complete KYC successfully. The payment you make before we have successfully processed your KYC is held in an RBI-regulated ESCROW account. Once your KYC is successfully processed, the amount held in ESCROW is released to mutual funds for processing your investment. Your investment details will be available on your dashboard in one full working day after your investment has been successfully processed.

How are the fund baskets selected? What is the risk?

Wealthy’s algorithm first applies threshold of fund vintage and AuM to determine which funds are worth investing. Funds are then selected on the basis of rigorous analysis of historical data using parameters such as historical returns, volatility and correlation between funds. Fund selection and portfolio allocation by Wealthy is based on CAPM (Capital Asset Pricing Model) algorithm proposed by Nobel prize winning economists Markowitz, Sharpe and Miller. With Wealthy, you invest your money in more than one fund. This technique of investing in more than one fund is called diversification and is used to minimise risk. So if one particular mutual fund isn’t doing well, there is another one to the rescue. All funds underperforming together still may happen if the Indian economy is in a very bad state, for example, what happened to the US economy during the financial crisis of 2008.

How does Wealthy help me grow my money?

Wealthy uses a combination of its team’s expertise in finance, data and technology to make your money work for you. The core of our investment basket approach is based on the principles of Capital Asset Pricing Model, i.e., we ensure that you take lowest risk for a given return target. We help you do that by a) enough diversification and b) continuous monitoring of your portfolio. In other words our pre-selected fund baskets ensure that your eggs are placed in different and right baskets 24X7.

Tax Saver

Tax Saver

What does ELSS, Growth, Regular Plan mean when it comes to the type of fund?

ELSS: ELSS or Equity Linked Savings Scheme are mutual funds which qualify for tax exemption under section 80C of the Income Tax Act. They come with lowest lock-in period of three years within tax-saving instruments category. The fund is an equity mutual fund as it is invested primarily in the stock market. Growth: The cash mutual funds receive in the form of dividends from the shares they hold is reinvested back to buy more shares without affecting the lockin period of your amount. This reinvested money increases the net asset value (NAV) of the mutual fund and therefore is good idea for long term wealth creation. Regular: Mutual fund plan when you invest through a mutual fund distributor as opposed to buying directly from a mutual fund company.

I don’t have enough money to invest the suggested amount. What should I do?

You can choose ‘Flexi Pay’ option to invest in as many instalments as you want. You have time till March 31st to invest your suggested amount. Minimum size of each instalment is Rs 2,500. Even if you are not able to invest the entire suggested amount, you will receive benefit of tax-saving on the amount that you were able to invest till March 31st of this financial year.

Is it too late to save tax? The deadline to submit documents in my company has passed.

Don’t worry if you have missed your internal HR deadline. You have time till March 31st to complete your tax-saving investments. You can declare these investments while filing Income Tax returns. Income Tax department will appropriately refund you the additional tax that you have saved by making tax-saving investments post the internal deadline at your company. Refund process of the Income Tax department is very smooth and the additional tax you saved is credited to your bank account within 10 days.

What is the minimum I can invest to get started with Wealthy?

You can start investing with as low as Rs 2,500 and increase your investment as you feel comfortable. Please make sure in order to claim tax deductions for this financial year, the investment need to be processed before 31st March of this financial year.

Why only mutual funds for tax-saving investments?

Mutual funds have the ability to give the best returns on investment. A right mix of tax-saving mutual funds if invested for long term can provide 15-20% annualised return, as opposed to other alternatives such as Public Provident Fund (PPF) which give 8.7% annualised return. Tax-saving mutual funds also provide more flexibility by having lowest mandatory lock-in period of only 3-years.

Are there any transaction charges or fees involved?

NO. Wealthy levies ZERO transaction charges and is FREE for its users. All the money you invest goes to the Mutual Funds and is used to purchase your mutual fund units. To provide the suggestions and seamless transaction service, Wealthy earns a small fees from the Mutual Funds (ONLY for the time you remain invested through Wealthy). To ensure that we stay unbiased, Wealthy earns a uniform fee from all mutual funds. On the tax-saving portfolio currently offered, Wealthy earns 1.25% per annum. So if you invest Rs. 10,000 in the Wealthy suggested portfolio for 1 year, we earn Rs. 125 from the Mutual Funds. When you decide to redeem you will receive the amount of what the units are worth, with no additional costs.

What is a mutual fund? How does a mutual fund work?

A mutual fund pools money from several investors to invest in stock market, government / private sector bonds and other asset classes. Investment decisions in these mutual funds are taken by financial market experts, called fund managers, whose job is to get the best returns for the funds collected. Mutual funds, like stocks, have a value attached to them. They are bought and sold in units. Just like you buy Rs. 1,000 worth of shares of a company, you can buy Rs. 1,000 worth of units of a particular mutual fund scheme. The value of a unit changes everyday and it is called NAV – Net Asset Value. There are more than 6,000+ mutual fund schemes in India and are regulated by Securities and Exchange Board (SEBI) of India.

How are the future gains calculated?

The aforementioned return is the average of all the possible historical returns this portfolio has generated in any 3-year period (corresponding to the lock-in period for tax saving funds) since it has existed. This is shown as the ‘expected’ market behavior. The return shown in the ‘poor’ and ‘good’ scenarios is taking into account the standard deviation (the possible variation from the mean) of the values taken into account in calculating the average.

Where is the money going? When do I get it back?

The money you invest through the platform goes straight to the Tax-saving Mutual Funds, we don’t keep it with us. You will get mutual fund units allocated under your name, the proof of which you can download from your dashboard and use it as proof of investment. These units can be redeemed anytime after 3-year (mandatory lock-in period) from the date of investment by a click of a button. On redemption, the returns will get transferred to the bank account that you add to your Wealthy account. You can also redeem your investment directly from the Mutual Fund companies by showing them the proof.

Diversified Portfolio

Diversified Portfolio

What does Debt | Growth | Regular mean when it comes to the type of fund?

Debt denotes that you are investing in a scheme that invests to provide loans to companies and government. Growth is a type of investment style that re-invests all your gains to take maximum advantage of power of compounding. Growth is also a more tax-efficient way to invest than the other available option called as Dividend. Regular denotes that you are investing in the mutual fund via an intermediary, which, in this case is WealthyIN Customer Services Pvt Ltd.

What does Equity | Growth | Regular mean when it comes to the type of fund?

Equity denotes that you are investing in a scheme that invests in stocks of companies. Growth is a type of investment style that re-invests all your gains to take maximum advantage of power of compounding. Growth is also a more tax-efficient way to invest than the other available option called as Dividend. Regular denotes that you are investing in the mutual fund via an intermediary, which, in this case is WealthyIN Customer Services Pvt Ltd.

What are exit loads? Can I avoid them?

Exit loads are penalties charged by mutual fund companies if an investor withdraws his investment within a specified period of time. These are usually expressed as a percentage of current value of your investment. Extent of load and time-period are different for different schemes. Wealthy will guide you on applicable exit loads at the time of withdrawal.

Are there any charges or fees to use Wealthy?

No, there are no extra charges or fees for using Wealthy’s services.

Do I have to pay tax on these returns ?If yes, how much?

In case of equity mutual funds, all your gains on investments which you have held for more than a year are tax-free. Gains in equity investments which were held for less than a year are taxed at 15%. In case of debt mutual funds, gains on investments held for less than three years are added to your income and taxed as per your income-slab rate. For 3-year plus investments, there are two ways to treat gains. If you don’t account for inflation that might have eaten away your gains then you are taxed at 10%. Other method is to calculate your real gains (by subtracting inflation from your total gains) and pay a 20% tax on these gains. This process of calculating real gains is called indexation. Don’t worry, Wealthy will provide you with a detailed capitals gains / loss statement for all your withdrawals in a given financial year. This statement can then be used by you to calculate your income-tax liability while filing your income-tax returns. We understand taxes can be confusing and therefore are always available to clear up any confusions that you might have about your investments and their tax implications.

How soon do I get my money back after I press withdraw?

Once you place a withdrawal order on Wealthy’s system it will take about 24-48 hours for the order to be processed. Post processing of your order, mutual fund companies can take anywhere between 1-3 days to remit the withdrawal money back to your registered bank account.

How do I edit, pause or stop my monthly payments?

You can edit amount or date of your monthly payments from your dashboard. You will also be able to pause or stop your regular monthly payments from the dashboard.

How do I make additional payments after my first one-time payment?

All you need to do is visit your personal dashboard and click on ‘Add Funds’ to make additional payments. You can pay from your registered bank account using net banking or debit card.

What is the guarantee of the returns?

The returns are not guaranteed. Please note that there is also always a chance of incurring a loss or earning more than expected returns in your investment period. Wealthy has created each basket such that chances of your investment going below your initial capital, by the end of your investment period, is less than 5%. And even if it does go below, in the worst possible scenarios (1 in 1,000 odds) that we have simulated you shouldn’t lose more than 5-10% of your initial investment. Don’t worry, Wealthy’s 24X7 monitoring algorithms will try and help your selection stay on course during its investment period and keep you up to date about the growth of your money.

What is the lock-in period? OR Is there really no lock-in period?

For these investment plans there is no lock-in period and you can withdraw (partial or in full) from your investment account at any point in time. In certain funds, an exit load might be applicable depending on the duration of your holding. In such cases, Wealthy will advise you the exact exit load applicable and also provide you with all other information to help you avoid the exit load.

How are the future returns calculated?

Calculation of future returns is basis rigorous back-testing of last 10 years of returns data for any chosen portfolio. Aforementioned future returns above represent a range of returns which happened nearly two-thirds of time in last 10 years over the chosen time period of your investment for this particular plan. Future returns represent a measure of one standard deviation from the mean return over the last 10 years over the chosen investment horizon for the suggested plan.