Q: Could you explain the services you offer briefly, for both stocks and MF?
Wixifi offers 'robo' advisory services for investment in both mutual funds and stocks:
Based on the risk level of the user (calculated by Wixifi on the basis of the financial goals entered by the user or chosen by the user himself/herself), the system suggests an optimal portfolio for the user. The user can buy, sell or rebalance the portofolio on Wixifi's platform itself. The minimum amount required to invest in mutual funds through Wixifi is Rs. 5000 (i.e. if you avail Wixifi's investment advisory services). However, if you choose to invest in direct plans of your choice through Wixifi, the minimum investment amount will vary depending on the mutual fund plan.
Using the mathematically tested algorithms, the system comes up with an optimal portfolio recommendation for its stocks users. The minimum portfolio value of the user intending to use our stocks advisory services should be Rs. 10,00,000. Currently we do not offer stocks execution services but we will come up with that service very soon.
Q: Where is the data stored?
The data is stored in a data center run by Amazon Web Service in Singapore.
Q: Why is my data secure?
We use secure SSL which encrypts all the communication on the website. Over and above this, we make use of Amazon Web Services whose data centers are supposed to be among the most secure cloud platforms globally.
Q: Do you trade in equities?
We do not trade in equities. We believe that for retail clients, mutual funds are safer and simpler instrument to trade in.
Q: Do you recommend direct plans?
We recommend only direct plans which saves you a substantial amount of fees to be paid to the mutual fund. These savings are far in excess of the fee we charge you.
Q: Why is a SEBI Registered investment adviser unbiased?
By law, a SEBI Registered investment adviser is only paid by the client and receives no commission from the mutual fund house or from any stock trading firm. So there is no incentive for the RIA to promote a fund over the other which makes the RIA completely unbiased relative to an MF distributor who/which sells regular plans.
Q: What is the difference between Direct and Regular Mutual Fund plans?
Direct plan mutual funds have a much lower fee (expense ratio) than regular plans - in some cases it can be lower by 1.5% per year also which over time compounds to be a very large number. We believe that you should always buy direct plans as you pay no distribution commissions to the person selling you the direct plans. If you use a SEBI Registered adviser like us, you can pay the adviser directly based on her or his fee. That way the adviser works only for you in your best interest and not in the interest of the mutual fund.
Q: Should I buy stocks or mutual funds?
We typically recommend that for the first 10 lakhs of investment in financial assets you should buy mutual funds so that you can understand investing better. Once you cross this threshold you can start with investing small amounts in stocks as you continue your journey.
Q: What if the market crashes? How will your algorithm handle that?
Market crashes are a part and parcel of investing in the equity markets. Firstly you need to have the right amount of equity and debt mix as per your risk profile. Secondly you need to understand that you cannot time equity market crashes and thus have to continue sticking with the plan. That said we do analyse some macro-economic factors and other factors affecting the overall market and sometimes our algorithm will increase your allocation to debt if it believes that equities are highly overvalued - but this can only reduce risk sometimes.
Q: What is a back-test?
The system recommends a portfolio every month so that you can add capital to your stocks portfolio every month. We recommend that you re-balance to the target portfolio given to you after every 3 months. A back-test is a computer program that runs an algorithm on historical data to test what investments the program would have picked in the past. A back-test does NOT mean that the same performance will be repeated. It is only a information on what might have happened in the past.
Q: What does 'robo' investment advising mean?
'Robo' investment advising means making portfolio recommendations (i.e. where one should invest his/her money) based on mathematically sound algorithms which are designed to give maximum return at minimum risk.
Q: How many of your customers have profited from your services?
Our customers (in general) receive returns higher than the market returns by using the portfolios suggested by our system. We try our best to factor in all the market uncertainties. However, if the market is down for a long time, the algorithms work so that the customer continues to get returns higher than the market (which is what our algorithms focus on) but there is a chance that it might not happen.
Q: Can't my portfolio consist of both stocks and mutual funds?
Currently Wixifi recommends portfolios consisting either of mutual funds or stocks, not both. A customer has to pay for mutual fund advisory service and stocks advisory service provided by Wixifi separately. However, building portfolios comprising of both stocks and mutual funds is one of our future plans and we are working towards it.
Q: What is a PMS?
PMS stands for Portfolio Management Scheme. Wixifi is not a PMS. As per regulations in India PMS implies discretionary money management of a minimum capital balance of 25 Lakhs or above per client. Discretionary means that the PMS manager can re-balance the investments in your portfolio without taking explicit orders from you.
Q: How is Wixifi different from a PMS?
Wixifi can only change your portfolio upon orders given from you on our website. We do not work on a discretionary basis as our minimum investment is 5000 INR per client.
Q: Why is CKYC needed?
In order to comply with SEBI regulations, we need to capture your KYC (Know Your Client) information to share with Central KYC registry. It is a centralized agency that maintains the KYC records of the customers in the financial sector which can then be further used by mutual funds, SEBI registered investment advisers, stocks brokers etc.
Q: What is IPV? Why is it needed?
IPV refers to In Person Verification. During the process, you are required to show your Proof Of Identity (POI) and your Proof Of Address (POA). The financial institution verifies the presented POI against the person appearing for IPV and makes sure that the address given on POA is the same as that entered in the form. All the financial institutions are required to do IPV along with KYC to prevent any financial frauds.
Q: When do I rebalance my portfolio? Is there any particular time for this?
Yes, you should ideally re-balance your portfolio on a Quarterly basis. This does not mean that you churn 100% of your portfolio each quarter - just means it needs to be reviewed at the end of each quarter.
Q: If I enter my CAN can you see all my trades?
We can only track the trades through your CAN that are done through Wixifi. We cannot see your entire portfolio attached to your CAN.
Q: How much do you charge?
We charge you only 0.125% per quarter on the average of your daily portfolio value which works out to approximately 0.5% per year. You pay us using your credit card/net-banking/debit card after the end of the quarter.
Q: Do you charge any transaction fee for mutual funds?
We do not charge any transaction fee for trading mutual funds, however the entry and exit loads apply as per the rules of the individual mutual funds.
Q: Do you recommend direct plans?
We recommend only direct plans which saves you a substantial amount of fees to be paid to the mutual fund. These savings are far in excess of the the fee we charge you.
Q: What is a CAN?
CAN stands for Common Account number and is issued by MF Utilities (Mutual Fund Utilities) that enables you to invest across 26 mutual fund houses and covers over 94% of the AUM of mutual funds available in the country.
Q: Does the system recommend changing from one mutual fund to another?
Our system recommends a re-balancing plan for you every 3 months. During this plan it analyses the funds in your portfolio along with the switching cost and decides whether you should switch to another fund or not. The process is automated - all you have to do is click to approve the fund redemption, new subscriptions, and switches between funds of the same fund house.
Q: Why doesn't Wixifi suggest SIPs (Systematic Investment Plan) on Mutual Funds?
In our opinion SIPs are a way to get customers locked into a fund. We believe that with today's technology each time you want to invest you should invest in the best possible opportunities. If we suggest SIPs, you will have to invest in the same fund again for the period of the SIP when there might be better options available at that point of time in the future. For periodic investments, we suggest that you login to your account each month and make a new investment. However, if you wish to start an SIP through Wixifi in a direct fund of your choice, you can do it if you have a PRN (PayEezz Reference Number, read what PRN is in the FAQs).
Q: How long does it take to get a Common Account Number (CAN)?
You can get your CAN immediately once you enter your details but it takes 1 business day to activate the CAN for investments if your KYC is completed in CKYC Registry and a SEBI registered KRA. If we have to process your KYC in CKYC and a KRA, it takes about a week.
Q: What all details are needed to get a CAN?
The details required are your personal details like your name, father's name, residential, office and correspondence address, bank account details, your tax jurisdiction details and self-attested scanned copies of your PAN card and bank statement with your address printed on the statement.
Q: If I have paid my annual bill and have invested through Wixifi in the following year also, will I be charged for my investments in the following year only? Or would the charges take into account my investments in the previous year also?
We charge you on the average of your daily portfolio value (in this case, the investments made by you through Wixifi in the first year will also be factored in during the calculation of the bill).
Q: What is PayEezz?
PayEezz is a facility offered by MFU under which an investor can register a ONE-TIME mandate through which the investor provides a standing instruction to his/her bank authorizing MF Utility to debit his/her account for any future transactions (Lump sum or SIP). The user is allotted a PRN (PayEezz Reference Number) after the successful processing of his/her PayEezz registration form.
Q: What are the benefits of registering under PayEezz?
By registering under PayEezz, the investor need not issue cheque or other payment instructions every time they make an investment through Wixifi up to the maximum amount mentioned by the investor in the PayEezz Mandate Registration Form. This enables the investor to transact paperless and allows him/her to do transactions with a single click. Moreover, starting an SIP through Wixifi can be done only with a PayEezz Reference Number (PRN).
Q: How can I get a PayEezz Reference Number?
You can fill out the PayEezz Mandate Registration Form on Wixifi. The filled form will be emailed to you on your registered email address. You need to take a print out of the form, attach necessary proofs, review, sign the documents and send them to the address mentioned in the email. The allotment of PRN (PayEezz Reference Number) typically takes 10-30 days.
Q: What are the documents required to be submitted along with the PayEezz form?
Self-attested copies of your proof of identity, proof of address, bank account proof would be required. Detailed information on the documents to be submitted will be sent to you once you fill the PayEezz form on Wixifi.
Q: Are there any additional charges for registering for PayEezz?
Registration under PayEezz does not incur any fee. However, some banks may charge the customer for registration at the banks end. Please contact your bank for more information.
Q: Is there an upper limit on the number of PayEezz registrations that can be made under a CAN?
Investors can have as many PayEezz registrations as they wish under a CAN.
Q: Can I get a PRN against a bank account which is not registered under my CAN?
PayEezz can be registered ONLY against a bank account registered under your CAN.
Q: How will the investor come to know about the successful registration of PayEezz?
A communication will be sent from MFU to the investor via email and/or SMS upon successful registration of the PayEezz informing the investor about his/her PayEezz Reference Number (PRN).
Q: How can I use my PRN on Wixifi?
You need to enter your PRN on Wixifi to get started. Please go to 'Get/Enter PRN' on the left side of the Mutual Fund section and enter your PRN. After this, you would be able to use your PRN for Lumpsum and Systematic Transactions through Wixifi.
Q: How do I use and check the Performance Graph in my MF dashboard?
When you start your investment, the performance graph assumes that your portfolio is worth 1000. So if the value is greater than 1000, it means your portfolio is generating positive returns (exclusive of the applicable taxes) otherwise your portfolio is generating negative returns. The graph scales down your portfolio's performance to 1000 and plots it. This is the reason you do not see your actual portfolio value at every graph point.
Q: What is the difference between Mutual Fund Algorithm and High Yield Algorithm?
The Mutual Fund Algorithm takes into account your risk level and studies the market conditions to come up with an optimal basket of both Equity and Debt funds. The High Yield Algorithm focuses on building a portfolio of Debt funds giving high yields, with no Equity funds in the portfolio. The latter algorithm was built for users intending to have only debt funds in their portfolio, without any exposure to equity.
Q: What should be the minimum portfolio value to avail Wixifi's stocks advisory services?
The minimum portfolio value required to make the best out of Wixifi's stocks advisory services is ₹10 lakhs.
Q: What is a DEMAT Account?
A DEMAT (Dematerialized) account is used to hold shares, bonds, securities etc. in electronic form so that the investor doesn't have to get into the hassle of securing them in physical form.
Q: Does Wixifi open DEMAT accounts for its clients?
Currently, Wixifi only offers advisory services for stocks and does not execute orders for its stocks clients. Hence Wixifi does not open DEMAT accounts for its users. But it is on our to-do list and we are currently working on it.
Q: When do I re-balance?
The system recommends a portfolio every month so that you can add capital to your stocks portfolio every month. We recommend that you re-balance to the target portfolio given to you after every 3 months.
Q: Why don't you offer stocks execution so that I can automatically trade the entire basket like you do for the mutual funds?
We are working on a product to be able to do this. Please talk to us about using this product if you are interested.
Q: How much do you charge for Stocks?
We charge 6,000 rupees for a 6-month subscription and 10,000 rupees for one year subscription.
Q: Can an NRI invest in Mutual Funds through Wixifi?
Currently, our MF platform is not designed for NRI investors. But if an NRI wishes to avail Wixifi's Mutual Fund advisory services and invest through Wixifi, we can help him/her in obtaining a CAN by processing his/her details from the backend. Some additional documents and information may be required to complete the Account Opening Process details of which will be communicated to the NRI user directly through email.
Q: Can CAN be made for NRI investors?
Yes, an NRI can get a CAN. We can help him/her in obtaining a CAN by processing his/her details from the backend. Some additional documents and information may be required details of which will be communicated directly to the NRI user through email.
Q: What is an NRE account?
NRE (Non-Resident External) account is a repatriable rupee account that can be maintained by an NRI in India. For e.g. overseas funds may be first transferred to the NRE account and then the account may be debited with the amount of investment in, say a mutual fund. When such investment is sold, it can be credited back to the NRE account and then transferred to any overseas account if need be.
Q: What is an NRO account?
NRO (Non-Resident Ordinary) account is a rupee account with restricted repatriability that can be maintained by an NRI in India to manage income earned in India from sources such as rent, dividends etc.
Q: What are the differences between NRE and NRO accounts?
1. Repatriability: One can easily repatriate funds from an NRE account including the interest earned in that account whereas NRO account balance is repatriable upto a certain limit. Amount of upto USD 1 million net of applicable taxes in a financial year after giving undertaking along with a certificate from a chartered accountant can be repatriated.
2. Taxation: NRE account is exempted from tax (no Income tax, wealth tax and gift tax) in India. Interest earned from these accounts is also exempt from taxes. NRO accounts are subject to income taxes, wealth taxes, and gift taxes. Interest earned on an NRO account is also taxed.
3. Deposit And Withdrawal: One can deposit funds from a foreign country (in foreign currency) in both NRE and NRO accounts, but funds generated in India in Indian rupees (such as salary, rent, dividends etc.) can only be deposited in an NRO account and is not permitted to be deposited in an NRE account. Withdrawals from both NRE and NRO accounts can only be made in INR.
4. Joint Holding: Two NRIs can jointly hold both NRE and NRO accounts. NRO account can be held jointly with a resident Indian (close relative) as defined under Section 6 of the Companies Act 1956. An NRE account cannot be jointly held with a resident Indian.
Q: If I am an NRI, what account should I open, NRE or NRO?
The choice depends upon what you need.
Q: Can I fund my mutual fund investments from an NRE account?
Yes, mutual fund investments can be made from an NRE account by an NRI.
Q: Can I fund my mutual fund investments from an NRO account?
Yes, an NRI can make mutual fund investments through his/her NRO account. NRO account can only be used to make investments on non-repatriable basis. Redemption proceeds can be directly credited to your bank account.
Q: When I sell my mutual fund investments, can I move my funds into my NRE account?
Redemption proceeds can be directly credited to your NRE bank account. However, if you have invested on non-repatriable basis, the sale proceeds will not be transferred to the NRE account. They can be moved to your NRO account.
Q: Will TDS be deducted by the mutual fund when I get dividend from a debt mutual fund?
No, there is no TDS deduction on dividends from mutual funds.
Q: What is the short term capital gains treatment for NRIs in equity funds?
The short term capital gains accruing from equity funds are subject to 15% TDS (Tax Deducted at Source) for NRIs.
Q: What is the long term capital gain treatment for NRIs in debt funds?
If investments are sold after three years, gains are taxed at 20% for NRIs.
Q: How is short term capital gains taxed for NRIs in debt funds?
If investments are sold before three years, gains are added to the income and taxed at Income Tax slab applicable to the NRI investor.
Q: How is short term capital gains tax paid by NRIs in brokerage accounts? Will the broker auto deduct any amount or is the onus on the NRI to pay the short term capital gains tax directly?
The short term capital gains tax is deducted at source (as TDS) for NRI investors. NRI investors need to file their return in India to claim refund of additional taxes (if any) withheld by the MF.
Q: Does Wixifi charge any fee for Import Portfolio?
No, Wixifi doesn't charge anything for Portfolio Import. This is a free of cost feature.
Q: Will Wixifi charge me for using the Switch to Direct feature?
Switching from regular to direct funds through Wixifi's platform is absolutely free.
Q: Will I get charged for switching to Wixifi Management?
No, it is absolutely free. After switching though, the capital gets added to your portfolio in our system and you will be charged as per our MF pricing plan after the day you switch to Wixifi management.
Q: What can I see after I import my portfolio on Wixifi?
You can see your whole trade history, graph comparing your portfolio performance with NIFTY and Wixifi's algorithm and capital gains data of your portfolio.
Q: How is my data secure if I give my portfolio to Wixifi?
We use secure SSL which encrypts all the communication on the website. Over and above this, we make use of Amazon Web Services whose data centers are supposed to be among the most secure cloud platforms globally.
Q: What are the benefits of importing my portfolio on Wixifi?
You can import your existing MF portfolio and compare its performance with that of NIFTY and Wixifi, and you can see your trades history. Moreover, if you switch your existing holdings to Wixifi Management, the system takes into account your earlier investments (mentioned in the imported portfolio) and then gives you optimal investment recommendations. You can also see your capital gains data and how much you would save by switching from Regular to Direct funds.
Q: What are the benefits of switching from a Regular to a Direct fund?
By choosing a regular plan, you choose to invest through a broker. By switching to its direct counterpart, you need not pay any fee to any broker and hence the plan generates more returns.
Q: What is the difference between detailed and summary portfolio?
Summary portfolio statement is the one which contains your portfolio snapshot on a particular date whereas Detailed portfolio statement is the one in which there is a detailed transaction history of your portfolio. Wixifi needs your detailed portfolio statement for MF portfolio import.
Q: Why does Wixifi need my detailed portfolio?
In order to generate the graph showing your portfolio's performance against that of NIFTY and Wixifi, we need a detailed record of your historical transactions so that we can provide you with a clear picture of your portfolio.
Q: How do I get my detailed portfolio?
For that, please go to 'Import MF Portfolio' on the left side of the Mutual Fund Section and click on the 'Import' button. Then select the option of 'Detailed Portfolio' and the period for which you want to generate the portfolio. CAMS will ask you for your email address and the password with which you wish to protect your MF statement and the statement will be sent to your email address in 2-3 hours. Please click here to watch a video on how to MF import your portfolio on Wixifi.
Q: Can I select mutual funds for investment on my own on Wixifi?
Yes, you can. You have to just sign up on www.wixifi.com, complete the account opening form and obtain a CAN (if you don't already have one, read more about it in the FAQs). Once you have your CAN (Common Account Number), you can invest in direct mutual funds through Wixifi. If you wish to execute all your transactions on one click and wish to start an SIP, you will also be needing a PRN (PayEezz Reference Number, read more about it in the FAQs).
Q: Can I purchase, switch and redeem funds of my choice through Wixifi?
Yes, you can purchase , switch and redeem funds of your choice. You even have the option of starting an SIP if you have a PRN (PayEezz Reference Number, read more about it in the FAQs).
Q: How do I know if my payment is successful?
After you've entered your payment details, you'll normally get an order confirmation message on the screen and/or by email.
Q: I have invested in a mutual fund through Wixifi. How much time will it take for the allotment of units?
It usually takes 2-7 business days for the allotment of units.
Q: What is SIP?
Systematic Investment Plan is a tool that helps you to create wealth by investing small amounts of money at scheduled times. In SIP, a fixed amount of money is debited periodically from the investor's bank account and is invested in the chosen plan.
Q: How can I track my investments?
You can see almost all the stats associated with your investments on our website which include realized capital gains, unrealized capital gains, exit load etc.
Q: What is the difference between Lump-sum and Systematic Investment?
Lumpsum investment simply means investing money whenever you have it. Systematic investment schedules periodic debits if you have scheduled an SIP (Systematic Investment Plan), credits if you have scheduled an SWP (Systematic Withdrawal Plan) or both if you have scheduled an STP (Systematic Transfer Plan).
Q: Why doesn't Wixifi provide SWP (Systematic Withdrawal Plan) and STP (Systematic Transfer Plan)?
Currently, Wixifi does not offer SWP and STP. However, we are working on it and will come up with the features soon.
Q: What is expense ratio?
Expense ratio represents the annual fund operating expenses of a scheme, expressed as a percentage of the fund's daily net assets. Operating expenses of a scheme are administration, management, advertising related expenses, etc. Wixifi allows its users to invest in direct plans only, which have a lower expense ratio than their regular counterparts.
Q: I already have an account with Wixifi, do I need to open a separate account for Manual Transaction through Wixifi?
No, you need not open a separate account for this. You can use your existing Wixifi Account to transact funds manually as well as to get mutual fund recommendations.
Q: Must I state for how long I want the SIP?
Yes. You will have to state for how much time you want the SIP. You will have to mention the Start Month and Year and End Month and Year.
Q: How much charge will I have to pay for using the Manual Transaction Service on Wixifi?
There is a platform fee that you will have to pay if you wish to invest in direct mutual funds of your choice through Wixifi, which is a quarterly fee of 0.125% of the average of your daily portfolio value.