How is Elever different from other robo-advisors?
Elever is one-of-a-kind investment destination. It is a fully personalised, goal-based investment app that tailor-makes financial and investment management in ways that was never before possible. Elever does this by connecting your present financial reality with your future lifestyle ambitions using the latest in AI/ML technology. We call this end-to-end, 100% customised investment thinking - Systematic Lifestyle PlanningTM (SLP). Understand how we are better in detail HERE.
We have chosen to invest in investment products like ETFs and Stocks that are low-cost, commission-free, and without fund manager biasedness. Further, we have invested heavily in customer experience, system security, and scalability.
How does Elever work?
Elever follows an end-to-end financial planning process called Systematic Lifestyle Planning (SLP). In brief, below is its 4-step process.
Why can't I build my own investment portfolio instead?
Of course, you can. Nothing stops you from creating your investment portfolio of ETFs and stocks using your brokerage account.
However, it can be time-consuming and challenging to evaluate all the available investment options. It can also be pretty difficult to regularly review and rebalance your portfolio as it drifts from your target thresholds. It may also be more expensive than you realize – you need to buy multiple shares and trade them and rebalance on an ongoing basis, each time incurring fees. As a result, even seasoned professionals typically fail to meet their benchmark index’s performance.
For an affordable fee, Elever saves you the time and energy it takes to build and maintain a well-diversified investment portfolio. In addition, we provide periodic risk profiling, asset allocation guidance, establish and rebalance your investments, continuous goal management, and ensure you remember to check in on your goals and position constantly.
How is Elever different to a traditionally managed fund?
We are different in a fundamental way. Firstly, a traditionally managed fund's main focus is the fund itself and not the end investor, which is, well, you. A fund's overall strategy will dictate whether or not a buy or sell action has to be taken, without any connection to your present and your evolving future in regards to income, expenses, life stage, and so on. Elever, on the other hand, makes every single buy/sell decision based on you and nothing else.
Secondly, most traditional funds are actively managed. Here, the objective is to try and find securities that can outperform and give the maximum return. This in turn, brings in a human bias in the form of a fund manager's recruitment and his or her selection of securities.
A growing body of research shows that the vast majority of actively managed funds fail to outperform their target benchmarks on a consistent and persistent basis. Moreover, numerous studies have also shown that investors who try to time the market usually end up with lower returns than those who simply "buy and hold".
At Elever, we are strong advocates of passive investing. Elever, focuses only on you and is a rule-based algorithm. Elever's objective is to provide customers, basis their financial reality, the best diversified portfolios with the optimum risk thresholds and which are also low-cost in nature. And what's the bottomline? Unlike a fund chasing returns, Elever's objective is towards one and only one thing and that is achieving your goal in the timeline suggested.
Is Elever SEBI approved?
Yes. Elever is a SEBI Registered Investment Adviser (Registration No. INA200016102) registered under SEBI (Investment Advisers) Regulations as amended from time to time. Registration valid till cancelled.
What is systematic lifestyle planningTM (SLP)?
At Elever, we strongly believe that money by itself has no meaning. Chasing ‘X%’ returns is meaningless unless it translates into helping you upgrade your lifestyle in the near- or long-term future. This can be anything from buying a bigger car, to taking a long-time dream of a South American vacation, starting a new business, retiring early, or having enough money for your child’s education in an ivy league school.
And that’s why our investing philosophy focuses on that end lifestyle goal and the various things required to make it happen, in the timeline that you want to make it happen in. That’s why don’t call it SIP, we call it Systematic Lifestyle Planning TM (SLP).
SLP is an end-to-end, completely personalised, financial system that starts with your present financial reality, understands your future ambitions, and maps out a detailed financial plan to help you achieve them. Read about SLP in detail HERE.
How is SLP different from SIP?
SIP is a mechanism. It is a discipline of investing a pre-decided amount of money at the end of a pre-decided time period (fortnightly, monthly, quarterly, etc.). And that's all there is to it.
SIP does not offer a way or solution to know whether the amount pre-decided is indeed the right amount, and if it will help you achieve any of the reasons you are investing for.
SLP, on the other hand, is an end-to-end, completely personalised, financial system that starts with your present financial reality, understands your future ambitions, and maps out a detailed financial plan to help you achieve them. Hence, while SIP is a tool, SLP is a philosophy.
What is an exchange-traded fund (ETF)?
An ETF, or exchange-traded fund, is an investment security that combines some of the attributes of stocks and mutual funds. Like stocks, ETFs trade intra-day on an exchange. And like with mutual funds, many ETFs seek to track the performance of a benchmark index, such as the NSE Nifty 50 using a basket of securities.
When you buy an ETF, you're buying a basket of securities combined into one investment security that trades on an exchange. To do this, many ETFs passively track an underlying index, - this could be not just stocks, but bonds, commodities, currencies, etc.
Shareholders of ETFs do not directly own shares of the underlying securities or assets; they own shares of the ETF itself - just like a mutual fund.
Why KYC is required?
As per SEBI Regulations, KYC compliance is mandatory to get investment advice from SEBI Registered Investment Advisers.
What is the process to complete KYC?
Elever allows you to carry out your KYC within the Elever app by filling online KYC form and submitting requisite documents online as stated. You will have to share your name, photo, email ID, phone number, date of birth, address, and bank account details. To verify the same, you need to upload your PAN as Proof of Identity, Aadhaar as Proof of Address, Cancelled Cheque, and participate in video KYC
Please note the following verification process of the above documents:
After verification, you will be asked to e-Sign the online KYC form and Elever’s Investment Advisory Agreement using Aadhaar.
How long does it take to process KYC?
Typically, Elever should process KYC immediately once all the verification is completed online on a real-time basis. However, if there is any discrepancy found, Elever will send an email in this regard. However, Elever reserves the right to reject your KYC if any of the documents violate SEBI guidelines.
How can I update my KYC details if it changes?
You may update your KYC details by visiting the Profile section in the Elever App and submitting requisite documents online.
Why do I need a brokerage account for investing via Elever?
Elever has integrated with multiple brokerage houses to provide implementation services for its advice. You need to have a brokerage account with these brokerage houses to enable implementation service. It helps provide a seamless service, from advising to actual execution of the said advice with customer consent. It further allows Elever to get the final transaction data & track the customers' portfolio performance on a real-time basis.
From a customer's point of view, Elever never takes money to manage. The money always lies in the customer's brokerage account, & they have complete control over the investment amount.
Which are the brokerage accounts supported by Elever?
Currently, Elever supports Zerodha, Upstox, Angel One, 5paisa, Groww, IIFL Securities, Motilal Oswal, Alice Blue, & Trustline. We will continue to integrate with more at the earliest.
Can I use multiple brokerage accounts to invest via Elever?
No. You are allowed to use only one brokerage account to invest via Elever.
Can I change my brokerage account mid-way?
Curenrly, Elever does not support change in brokerage account mid-way.
Why do I need to link my bank account with Elever?
Linking of bank account is required for both operational reasons and to avail of regular cashback and discount offers.
Operational reasons: Linking of bank account is required to create an e-mandate, by which Elever's subscription fee is collected each month. It also helps in making the entire functioning of the app seamless for you.
Avail offers: Elever will have regular tie-ups with other brands to offer our customers offers and cashbacks. Having a linked bank account enables Elever to directly credit the offer/cashback amount to your bank account.
Which all bank accounts are supported by Elever?
Elever currently supports all private sector and public sector banks.
Can I have multiple bank accounts linked to Elever?
No. You can only link one bank account with Elever.
How can I change the bank account that I have linked with Elever?
Curenrly, Elever does not support change in bank account mid-way.
Why do I need to fill risk questionnaire?
The short answer is - because it is mandatory as per SEBI (Investment Adviser) regulations.
However, understanding your risk profile is absolutely critical for us to offer you advisory that is ideally suited for you.
Traditionally, this is done by asking you to fill a form that assesses your tolerance to risk. Are you a risk taker, a safe player, or somewhere in the middle.
However, Elever goes one step further. Knowing you are a risk taker may not offer the complete picture, as you may have financial commitments that requires you to play it safe for a few months or years. Elever combines the two parameters (willingness to take risk & capacity to take risk) to create an accurate risk profile for you. This is also why we strongly recommend our customers to be as detailed and accurate as they can be in disclosing their overall financial status.
What is risk tolerance and risk capacity?
Risk tolerance is your willingness to take risk and be comfortable with it. It is a behavioural trait that is relatively stable for individual customers.
Risk capacity is your ability to take risk based on your financial situation, and it varies as your financial situation evolves - both, postively or negatively.
What does my risk profile mean?
Based on our detailed risk profiling, we classify risk profiles into five categories - Defensive, Conservative, Moderate, Growth, and Aggressive:
Defensive Risk Profile: is an investor who seeks to invest in mainly interest-generating assets (deposits, bonds, etc.), and a very small component in growth assets (stocks, real estate, etc.). This kind of investor prioritises preserving capital and hence are more willing to accept lower potential returns.
Conservative Risk Profile: is an investor who is to a certain extent similar to the Defensive investor, but with a higher allocation to growth assets. This kind of investor prefers low volatility of their investments, and in return is willing to settle for a modest potential return.
Moderate Risk Profile: is an investor who seeks to strike a balance between interest-bearing safe assets and growth assets. This kind of investor while they seek capital stability, they are willing to accept moderate volatility to gain the appropriate return potential.
Growth Risk Profile: is an investor who seeks a portfolio with an emphasis on growth assets with some exposure to income-bearing assets. These investors are willing to accept higher levels of investment value volatility in return for higher potential investment performance.
Aggressive Risk Profile: is an investor who seeks a portfolio invested predominantly in growth assets with almost no exposure to income-bearing assets. These investors are willing to accept very high levels of investment value volatility to maximize potential investment performance.
Why do I need to refill the risk questionnaire at regular intervals?
Simply put, to keep our advisory consistently accurate to your needs.
While people's mindset largely tends to be stable, there still could be factors or events in one's life that can alter their manner of thinking. To understand this change, risk tolerance part of the questionnaire should be filled each year. Think of it like your money related annual psychological check-up.
On the other hand, how much risk can a person afford to take depends on his or her current financial condition, and this keeps evolving. Which is why risk capacity part of the questionnaire should be filled every 6 months to ensure our advisory is factoring in financial changes in your life in an active manner.
What if I entered wrong details in the risk questionnaire, will I be allowed to change the answers?
We would urge you to be vigilant and accurate while filling out the risk profile because this directly impacts the advisory we provide you. However, in the off chance that you do want to change the details, you may do so after a waiting period of 30 days from submitting/updating the questionnaire.
Can I REJECT my Elever risk profile if I don't agree with it?
No, you can't. And that's because we don't create your risk profile, we discover it. Elever has built its proprietary algorithm based on time-tested models, which considers inputs provided in both risk tolerance and risk capacity questionnaires. However, the inputs for this come from you. If you have been candid and accurate with your information then we are confident that irrespective of how you feel about your profile, it is the right one for you.
Will I get a report on my risk profile?
After submitting the risk questionnaire, you will receive a detailed risk profiling report at your registered email address.
When is my billing date?
The billing date will be 5th of every month. If 5th is a trading holiday, immediate next trading day would be the billing date for all users.
What happens to my goals if I don't pay the subscription fee on time?
You have 20 days from the day of bill generation to pay your subscription fee. Failing to pay the subscription fee in the allotted 20 days will result in Elever suspending all advisory services related to active goals - such as goal tracking, rebalancing, etc. You also will not be able to add SIPs or one-time investments to the goals. Finally, if you do resume your present goal or decide to create a new one, you will need to clear existing subscription dues before they are activated.
However, you can withdraw your invested amount at any time without any penalty.
Will I be charged a subscription fee if I close my goals for some time before starting a new goal?
Elever charges a subscription fee depending on the daily average value of your your portfolio for the previous month calculated on the billing day of each month. In case you close a goal any day in a calendar month, then you will be charged only on a pro-rata basis.
Where can I see my bills?
You will be able to view your bills within Elever App under the Profile section. Elever will upload bills on the billing date every month.
What is the mode of fees charged by Elever?
Elever charges investment advisory fees in the form of basis points based on the daily average value of your portfolio (Assts under Advisory) in a calendar month calculated on the billing date every month. Fees will be payable on a monthly basis.
What are Elever's subscription charges?
With the vision to democratize investment in the financial markets, we have devised the following subscription tiers based on the market value of your investments (Assets under Advisory (“AUA”)):
Please note the following points for subscription charges: -
When do the subscription tiers change?
On the billing date, based on the daily average value of your AUA, the subscription tier will be decided and accordingly charged to you. For instance, if your daily average AUA of a month is Rs.3,50,000, then your daily average portfolio value calculated for the previous month on the billing day will be less than 5,00,000. This would mean you remain in the Beginner Tier and you will be charged Rs 146/- + GST for that month.
However, in one of the months, your daily average portfolio value may become Rs.6,00,000 and this moves you to the Advanced Tier, and hence in the next month, you will be charged Rs 200/- + GST.
Can I pause my subscription?
You cannot pause subscriptions as long as there is an active goal under Elever advisory. However, if you withdraw your goals for any reason and there are no active goals on the billing date, then Elever will not charge you again until you start another goal.
Are there any exit loads when I withdraw my goals?
No, there are no exit loads. You can withdraw partially or entirely at any time without penalties.
Are there any additional charges?
Apart from the subscription fee, there are no charges for Elever advisory. However, as with any other investment, the following charges would be paid to different parties by you in an individual capacity:
Who is eligible for the referral program?
All Elever customers who have completed the sign-up process are eligible for the referral program.
What are the benefits of the referral program?
For every friend you refer and who creates an active goal, you are entitled to a 3-month advisory fee waiver, while your friend is entitled to a 6-month advisory fee waiver. So, for example, if you refer two friends and both create an active goal, you will be entitled to a 6-month advisory fee waiver, and your friends will be entitled to a 6-month advisory fee waiver each. However, please note that fee waivers will be applied once you have an active subscription.
Is there a limit on the number of people I can refer?
No. Refer as many people as you like. And yes, this means if you refer 10 people, all of whom start active goals, then for you, Elever subscription fee is waived off for 30 months (10*3).
What is a goal?
In simple terms, a goal is an aspiration you have. It could be buying a bigger car, a house, or starting a business, or taking a month long vacation, or retiring early or securing your child's future.
But fact is, aspirations cost money. And so identifying and executing a financial plan that is ideally suited to you to achieve these goals is in turn the true goal for Elever.
Finally, operationally, a goal is one which has 3 parts:
How does Elever recommend a goal?
In short, by combining a primary understanding of our customer, with relevant primary and secondary data for them.
Primary data: This is essentially data provided to us by you. You can choose to give as little or as much data as you like - from income profile, to expense patterns, and so on. This data, as with all your personal data is 100% confidential and the more accurate your data is, the better our recommendations and our overall advisory becomes.
Secondary data: This is essentially data received by Elever from third-party data providers. For e.g. consumer insights based on geo-location, liability data from credit bureaus, financial transactions from account aggregators, etc.
What if I want to alter the recommendation provided to me by Elever? Can I change?
Sure, you can. You have complete freedom to pursue any goal at your discretion. You may also change goal size and goal duration of our recommended goal as you deem fit. For instance, say we have recommended you a target corpus of Rs.2 Crore for house ownership. However, you possess ancestral land, which you are willing to sell for Rs.1 Crore, then indeed your required corpus comes down by half, and you may alter our recommendation to reflect that.
How to create a goal?
There are two ways to create a goal on Elever.
Recommended goals - Based on Elever's understanding of you through various insights, Elever will recommend goals that it believes are suited for you. These goals will be pre-filled with the target amount, investment duration, SIP amount, everything that is personalised for you. You may choose to set the goal as is, or alter certain inputs before activating it.
On your own - You can create your own goal - decide your goal purpose, select a target amount and set the investment duration - and Elever will tell you the exact amount to be invested either as SIP or lumpsum to achieve it. (if you have set a goal that is unrealistic, then, Elever will point that out and help you get it right).
Can I create a goal which is not recommended by Elever?
Of course, you can. Recommendations are there to help you, and the more time you spend on the app, the better our understanding of you becomes and hence, the recommendations will get more accurate over time.
However, if you have clarity in what you want to achieve, you can by all means set a goal from scratch.
What are the different stages/states of any goal?
How can I track my goal?
Elever's endeavour is to provide you with transparent and timely information regards to your investments.
Can I modify my goal?
Yes. You can utilise the “Modify goal” feature on the app to make any updates that you may want to make, be it in terms of SIP amount, goal duration, etc. Elever will automatically realign your portfolio basis that and show you its impact on your goal. You may then choose to confirm it or cancel the modification.
However, do note you can make modifications only for active goals.
Does Elever guarantee returns or in achieving the goal as projected?
No. Neither can any other investment advisor. The advisory provided is on best effort basis.
The reason is straightforward. All investment products are subject to market risks, and hence performance can never be 100% guaranteed. Please note that past performance does not guarantee future returns and the performance of Elever’s investment advisory services is subject to market risk. A completely unpredicted event like the Covid crisis can disrupt the market, which will be beyond anyone's control.
What happens when my goal is achieved?
The moment your portfolio hits the target corpus, Elever sends a notification alerting you regarding the same.
We strongly recommend that you withdraw the goal corpus within 48 hours to avoid further market exposure.
Can I choose not to withdraw my goal and instead let it continue to grow further?
We would not recommend you to let a completed goal continue growing. The entire philosophy of goal-based investing is to prioritise your lifestyle goals. Hence, once you achieve a goal, you need to withdraw and close that goal.
However, it is understandable that you may decide on reallocating the target corpus of one goal towards another, more important one. In that case, we recommend you withdraw and close one goal and re-invest its corpus as a lumpsum for another goal or start a new goal with the corpus.
Can I partially withdraw my goal?
Though we highly recommend against doing so, you can make a partial withdrawal at any point of time during the goal duration. There are no restrictions on the number of withdrawals and the amount that can be withdrawn.
However, do keep in mind that doing so severely comprises the ability to achieve the goal as projected.
What happens when I prematurely withdraw my goal?
One of two things could happen.
If the withdrawal is the entire portfolio amount, then that goal will be treated as a closed goal.
If, on the other hand, if the withdrawal is partial then Elever will calculate its impact on your goal and show you ways to course correct for it - either by adding additional contributions to make up for the withdrawal or by modifying the goal to ensure achieving it.
Can I transfer funds between goals?
Sorry, no. This facility is not available at the moment. You need to first withdraw partially or entirely from an active goal and then re-invest the amount in the goal you want to add it to. However, premature withdrawal from any goal may impact it severely. Read above.
What are the different statuses of goal?
How can I reset my goal?
You can select relevant goals in the 'Goals' section and select the ‘Reset’ option. You would get old goal attributes and the present value of corpus with suggested monthly or one-time contributions required to reset for the goal.
What happens when the goal achieves its target value?
Elever will immediately alert you of the status and will recommend withdrawing of the goal. Once you approve it, Elever will instruct your broker to sell all holdings related to the goal and the resultant corpus will be available as cash in your brokerage account, which in turn you may transfer to your bank account.
Is there a way to restart a closed goal?
You cannot restart a closed goal. You will have to set a new goal.
How many goals can I have at the same time?
There are no restrictions on the number of goals that you can activate.
What if I decide to contribute or withdraw from my goal during off-market hours?
You will have to wait for the market to open. You can make contributions and withdrawals only during market hours. The key reason for the same is significant price movement between the last closing and the opening price on the next trading day. It makes all trade approval taken during off-market hours redundant.
What would happen to my goal if I want to switch to another broker?
As of now, this facility is not allowed. Instead, you will have to withdraw and close the goal with your current broker. As of now you can't link more than one broker account with Elever.
What If I fail to contribute regular investments as per schedule?
After five days have passed from the scheduled date, Elever would club the missed investment contribution with the next rebalancing or SIP event. If you want to trigger investments before the next event, you can choose by making an ad-hoc contribution.
What if I fail to rebalance as per notification?
After five days have passed from the initial notification, Elever would club missed the rebalancing event with the next rebalancing or SIP event. If you want to trigger rebalancing before the next event, you can choose by making an ad-hoc contribution.
What would be the impact of change in risk profile on my goal?
As risk profile is directly linked to return potential, your goal would need a change in attributes. Goal status would be changed to "Reset Needed" to indicate the same. Elever will disable all live alerts for the goal till you reset the goal.
Have you already accounted for taxation payments?
Elever provides return projections and advisory after considering both Short-term Capital Gains Tax and Long-term Capital Gain Tax on a best-effort basis.
Does Elever have a minimum investment amount?
Yes. Our minimum investment amount is Rs.2,000 per goal.
Where will my money be invested through Elever?
Elever advises to invest your money in ETFs and stocks listed on National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). Money invested provides exposure to Indian Fixed-Income Securities, Indian Equities, International Equities, and Gold.
How is my investment portfolio decided by Elever?
Elever uses Modern Portfolio Theory to arrive at asset allocation models that maximize expected returns based on a given level of market risk. Then, using your risk profile and goal attributes, we decide on a suitable asset allocation model.
Following are the instruments used to represent each asset class:
Our investment team selects ETFs and stocks in our portfolio based on a detailed review and back-testing process. Our selection process considers a range of factors for both ETFs (fund size, liquidity, expense ratio, etc.) and stocks (liquidity, past performance, volatility, etc.). In addition, we regularly review these selections to ensure they represent the best available investment options for our customers.
How are my investments held? Is it safe with Elever?
All your investments made through Elever are owned directly by you in your name in your brokerage account. Your money is never held by Elever directly or pooled with any of our customers. Elever acts as an interface that advises, implements, and facilitates buying and maintaining your investment holdings after your explicit approval.
Can Elever automatically execute trade on customer’s behalf?
Elever will only facilitate the execution of trade through your brokerage account after receiving your explicit approval. As per SEBI regulations, Elever does not provide execution services. Therefore, you have complete discretion on the timing and execution of the trade.
What about security? Is investing online safe?
We have invested heavily in making our platform secure and also enable secure user experience. Following are the prominent features:
Can I decide my own investment portfolio for a goal?
Sorry, no. Our investment team has carefully created all investment portfolios. They represent the application of our team’s investment and asset management experience. You should go ahead with goal creation only if you agree with Elever advice.
Can I alter my Elever suggested portfolio?
No. And the reason for this is very simple. Elever runs a highly complex, real time, AI/ML, rule-based algorithm that tracks and manages a client's requirement to the last level. And to achieve everything that we promise you, we need to be able to manage your goal portfolio completely. However, you can use your brokerage account to hold other stocks on your own, though to avoid any duplications or overlap, it is best to have a separate brokerage account dedicated to Elever.
What happens if I sell investment holdings directly from my brokerage account?
Such an action would lead to the failure to reconcile your investment holdings between the Elever system and your broker system. As a result, it would seriously impede our capability to service your goals and result in the classification of your Active goal as "Broken" in our system.
Where can I see portfolio holdings for a given goal?
Portfolio holdings for every single goal would be available on the Elever app under the "My Goals" section. Click on any Active goal, and you can see your holdings.
I'm not a financial expert but I would like to understand my personalised portfolio better. Can I?
Absolutely. We understand that trusting someone with our money requires faith in that person or company. And being a new company, we are more than willing to go the extra mile to earn your faith. We do this in 2 ways:
What is portfolio rebalancing?
All instruments in your portfolio would be allocated weights in line with target weights prescribed in the asset allocation model. However, with time, as the different kinds of assets in your portfolio deliver different returns, the composition of your portfolio can drift away from your targeted asset allocation mix. This can inadvertently increase your risk exposure, particularly if the mix becomes concentrated to higher risk (and potentially overpriced) asset classes and underexposed to more conservative investments. Therefore, it’s essential to bring back the portfolio mix to the target asset allocation mix using portfolio rebalancing.
Portfolio rebalancing is the process of buying and selling portions of your investment portfolio to bring the overall investment plan back to the target asset allocation mix. It reduces your investment risk and can even improve your investment returns by methodically forcing you to buy low and sell high.
When do you rebalance my portfolio?
Instead of using a periodic rebalancing approach, we use a drift-based rebalancing approach. In this approach, we only perform rebalancing if any asset class has reached a pre-defined weight differential regarding target weight in the asset allocation model. On average, it has led to 3 rebalancing activities in 2 years compared to 8 such activities in the quarterly periodic rebalancing approach. This approach reduced portfolio turnover, thereby reducing tax liability and brokerage fees for you.
Please note that portfolio rebalancing takes place only after taking your explicit approval.
What is portfolio turnover and what are the tax implications?
Due to rebalancing and portfolio management activities, a portfolio experience buying and selling of securities. As a result, a percentage of the portfolio undergoes changes, known as portfolio turnover. Portfolio turnover can result in potential tax liability.
In general, whenever you sell a stock and make a profit, you generate a tax liability. Depending on the holding period and instrument sold, you will be subjected to long-term capital gain tax (LTCG) or short-term capital gain tax (STCG). Additionally, on each dividend payment received, you are supposed to pay tax in line with your income tax rate.
|Instrument||Holding Period <12 Months||12 Months <= Holding Period <36 Months||Holding Period >= 36 Months|
|Equity/Equity ETFs||15% + 4% cess||10% + 4% cess on annual gains exceeding INR 100,000||10% + 4% cess on annual gains exceeding INR 100,000|
|Fixed-Income, Gold and International Equity ETFs||Personal Income Tax||Personal Income Tax||20% + Indexation benefit|
|Dividends||Personal Income Tax||Personal Income Tax||Personal Income Tax|
Can I integrate my existing holdings with my goal?
How do you account for corporate actions?
Dividends are considered cash holdings in the portfolio and reinvested during rebalancing or the next monthly contribution event.
All other corporate actions are implemented on an ex-date basis.
What is cash balance that is shown in portfolio value?
Due to price movements between order approval and order execution and restrictions on buying fractional shares in the Indian market, some proportion of your contribution cannot be invested in the portfolio and remains as cash in your trading account. Dividends paid between rebalancing periods are also part of the cash balance.
Ideally, we recommend you keep cash in the brokerage account and reinvest it at the time of your next rebalancing. This would ensure that the cash balance remains a minuscule part of your portfolio. However, you have complete freedom to take out this cash balance from your brokerage account and use it as you deem fit.
What is the use of buffer?
There is sometimes price movement between order placement and order execution. At times sizeable positive price movements would lead to insufficient cash balance alerts.
To ensure trade execution and to take care of positive price movement surprises, you need to provide an additional buffer amounting to 5% of investment value of any particular trade. Post trade execution, you are free to withdraw the unused amount of buffer from the brokerage account back into your bank account.
Can I trade without providing buffer?
Sorry, no. We do not allow trading without the availability of a buffer.
Why has my Elever’s Indian equity portfolio shifted from ETF only to a combination of ETF and stock portfolio?
As an investment philosophy, at the time of the last rebalancing, if a goal investment corpus was equal to or more than Rs.300,000, we shift all investments in Indian equity allocation from ETF only to a combination of ETFs and stock portfolios as it enhances the potential returns while maintaining similar risk characteristics.
Why has my Elever Indian equity portfolio shifted from a combination of ETF and stock portfolio to ETF only Portfolio?
The combination of ETF and stock portfolios is supported only at an investment corpus of Rs.300,000 or more at each goal level. So if your investment corpus dips below Rs.200,000 or less, we can no longer support the combination of ETF and stock portfolios in a meaningful way and hence it will shift to ETF only portfolio.