FAQ - fisdom

FAQ

TDS (Tax deducted at source) combines the concepts of ‘pay as you earn’ and ‘collect as it is being earned’. It requires that the person, upon whom responsibility has been cast, is to deduct tax at the appropriate rates, from payments of specific nature which are being made by him to a specified recipient. The deducted sum is required to be deposited to the credit of the Central Government. The recipient from whose income tax has been deducted at source, gets the credit of the amount deducted in his personal assessment on the basis of the certificate issued by the deductor

As per the KYC regulations, we are required to verify your identity either in person or remotely through a video. Your recorded video helps us completing this verification remotely and the KYC swiftly.

We use this as your photograph to make the KYC application.

As per regulatory requirements, Permanent Account Number (PAN) for all investments in mutual funds is mandatory.

As part of the KYC process, regulations require you to provide a snap of address proof: like passport, Aadhaar Card, Voters Identity Card, Driving License, Utility Bills (telephone bills for landline only, electricity bill, gas bill not more than 6 months old), bank account statement (not more than 6 months old).

However, if you are already a KYC verified customer, you don’t need to provide this document.

This is a snap of your cheque leaf with ‘Cancelled’ written across it. Regulation necessitates that your bank account for routing investments is on your name. To do this, we require a cancelled cheque leaf with your name pre-printed on it. If your name does not appear on the cheque leaf, then you can photograph your latest account statement from the same bank.

All investments will happen through this bank account.

As Warren Buffet has said, “do not save what is left after spending, but spend what is left after saving”. The percentage usually depends on your goals that you want to achieve, timeframe for the same and your monthly commitments. However, we highly encourage a 30% savings if you are single and 15% if you are married.

There are several bonds and what are called debt mutual funds in the market. They often earn as much as, or higher than fixed deposits, at a very low level of risk. Additionally, the tax rates on these are often lower than that on fixed deposits. So your money works for you that much better.

Once you are comfortable investing, and if you don’t need money soon, you can earn much better returns in stocks and related products. However, we will introduce them to you only once you are comfortable. At all points, you can override our recommendation and stick to bonds / debt, if you are not comfortable with the stock market.

You grow your wealth by making your money work for you. There are several aspects to this:

  • Setting aside a fixed amount every month towards investments
  • Making sure your money is not sitting idle in savings bank accounts
  • Making sure your money is earning the best possible returns – for e.g. ensuring it is not earning sub-par returns as in fixed deposits
  • For the above, getting and investing in a good set of recommended products
  • Periodically ensuring someone reviews your money and makes sure it is working for you

It means intelligent investing. It essentially means investing money with an expectation of obtaining an additional income or profit. It also means not letting your money idle in bank accounts, or earning poor returns in fixed deposits.

Yes. You can close your fisdom account anytime.

Your investments are always held in your name with the mutual fund and you can interact with them directly or choose to transfer to the ARN (AMFI Registration Number) of another broker, etc.

fisdom does not charge any fee or subscription. We earn commissions from the mutual funds for the money that you invest through us.

We take various factors into consideration before making our recommendation like your financial objectives, tenure, performance and management data of the fund, tax implication, fees, etc. To learn more refer to fisdom Investment Methodology

No we do not assure any minimum returns. Investor can get a guidance based on historical performance of the fund. However, the same is not a guarantee for future performance.

Your money is invested in a basket of researched high-quality mutual funds or corporate deposits, as per the recommendations shown to you. These investments are made in your name, and your money goes directly from your bank account to the mutual fund account you are investing in. The mutual fund companies will also send you statements as well as e-mail/SMS confirmations.

You can get started with a monthly investment as low as ₹ 500. If you are making a one-time investment, the minimum amount is ₹ 5,000.

We certainly do!
We have both Android and iOS versions of the app. You can view your account seamlessly between web, iOS and Android.

At fisdom, we go out of our way to make sure that confidential information pertaining to your account and investments are never compromised online. We provide bank level security to our customers.

There are 3 simple steps to get started:

  • Register yourself through email, Google or Facebook
  • As per regulation, you need to complete a simple one-time process to begin investing. You just need to take pictures of your pan card, cheque leaf and an address proof
  • We will intimate once the regulatory process is completed and you can start investing

 

Any Indian national, NRI or person of Indian origin having an Indian PAN card can invest through fisdom. NRIs or PIOs staying in US and Canada cannot invest at this point of time.
fisdom is not available for companies, partnership, trust, etc – you can invest only in your personal capacity.

fisdom is an investment advisor registered with the Association of Mutual Fund Federation of India (AMFI). We are a team of finance professionals, data scientists, and software engineers. fisdom is at the leading edge of a shift in financial services towards transparency and accessibility. Learn more about Who We Are.

fisdom helps make your money work for you. We provide personalised investment recommendations without asking you long, intrusive questions. As we understand you better over time, our recommendations can get further tailored to your situation. We also provide a seamless interface on the app and the web to transact and consummate these recommendations.

fisdom is an automated investment service provider. We manage a personalized online investment account for you that is accessible anytime and anywhere from your desktop, tablet or mobile. Learn more About Us

Tax implications, if any, only happen on withdrawal. Till you actually withdraw any money, there is no tax.

On withdrawal, the current tax rules are:

  • Investments in equity funds:
    • If you buy and sell within one year, then the gains, if any, are taxed at 15%
    • If you sell after one year, then there is no tax
  • Investments in debt funds:
    • If you buy and sell within 3 years, then then your gains are taxed at your applicable tax rate
    • If you sell after 3 years, then the gains are taxed at 20% with indexation benefit

No, for security of your money, redemption are credited only to the same bank account you invested from. If you have closed that account, you can submit a request for a change in bank details. Please contact fisdom at +91 80 3040 8363 for this purpose. When that is approved, you can request the redemption.

It takes 1-2 working days for the money to get credited into your bank account. In most cases, this happens in the next working day itself.
You will also get a statement from the fund house confirming the withdrawal and giving you the latest statement.

You can place a withdrawal request on the app itself. We do not charge any fee for withdrawal. So you can always make a withdrawal at any time.
If you need to make a large unforeseen withdrawal well before your goal tenure, there may be tax or load implications. Our algorithms work to choose your redemption funds in such a way that taxes and loads on you are minimised.

Yes. As your investments are held in your name with the mutual fund, you can request them to transfer your investments to the code of another broker. In that case of course, you can no longer see your money on our app thereafter.

Yes! We actively encourage it so that you can manage all your money in one place. After opening your account, you only need to send us soft copies of your existing account statements on documents@fisdom.com . We will send someone across will filled forms, for you to sign. This will complete the process, after which you can view your entire portfolio on our app / website.

There is no minimum period or lock-in unless you invest in tax-saving schemes. You have the option to withdraw your money at any time. However, we recommend disciplined long term investing for the best returns. You must also consider the impact of capital gains tax at the time of withdrawal.
Some products have loads (i.e. small charge) on premature exit. They do this to be able to optimise your money and earn the best return. In the write-ups given for each fund in the recommendation screen, we mention the load, if any.

Once you have chosen your investment, you will be taken to a payment gateway. There, the net banking of your chosen bank will appear and allow you to make the transfer.
In case you have started a systematic investment (SIP), all future investments will happen automatically through a bank mandate. We will be sending you a simple mandate for signature once you make the investment now.

The funds are decided based on the option you have chosen, your age, and your amount. Our algorithms combine this information with our research to decide the best funds for you.

In that case, you can choose ‘park money safely’ and make a lump-sum investment now. You can repeat the same in future months.
However, in our experience, people rarely manage to sustain this tempo if they do it manually. It is much better to decide a minimum monthly amount and start an SIP for that amount. The amount then gets automatically transferred from your bank account each month.

If you want to invest a fixed amount every month, you can choose ‘build wealth’ or ‘save for a goal’. If you wish to invest only one-time or lump-sum, you can choose ‘park money safely’. If you are looking for tax-saving investments under 80C, you can choose ‘save tax’.

We do not need any physical documents or photocopies.

All we need is photographs of the following from your cell-phone camera:

  • PAN card
  • Cancelled cheque leaf
  • Address proof – like Aadhar card, driving license, voter card, passport or recent utility bill or bank statement
  • Selfie
  • IPV (In Person Verification) video

Yes, you can start investing with fisdom without submitting any documents and that too instantly! If you are already KYC compliant, you can invest immediately. All you have to do is logon to fisdom.com, enter your PAN and bank details, and that’s it!

If you are not KYC compliant, the process takes 1-2 days. The moment you enter your PAN number on the app, the system tells you whether you are KYC compliant or not.

KYC is an acronym for “Know Your Customer”, used for customer identification. Just as you need to submit documents to open a bank account or get a SIM card, you need to complete this process before you can begin investing.

At fisdom, we have simplified the process of getting your KYC done – all you need to do is fill a few details on the app or website and upload a couple of photographs. It is completely done on the app itself and there is no paperwork, couriering, etc.

All returns in the reports are computed on annual basis. This is also called XIRR in mathematics parlance. While this may exaggerate the numbers in the initial few days of the investment, this is the most accurate and useful measure of returns.

We show returns at the overall level, and also for each goal and fund. Looking at this number, you can get a perspective on how your money is doing. Remember, this is an annual number. If you keep your money in the bank, this number is 4%. If in fixed deposits, this number is about 7%.

If your return is higher than that, the money is working for you better than it would in the bank or fixed deposit. If not, it usually means you need to wait longer for the money to work itself.

Yes, you can withdraw money at any time by tapping ‘withdraw’ in the navigation drawer. If there are any funds under lock-in (usually tax saving funds), they will not be available for withdrawal, though they will show in your reports.

Yes, once you have given us the change request, your funds get transferred under the fisdom code in 4-5 working days. Thereafter, you can view it on the app similar to other funds.

Yes, you can – under the ‘pending’ tab of the report. This means the transaction is successful, but the allotment of fund units is pending.

The fund units get allotted to you on the next working day after you have made the transaction. The feeds come 1-2 days after that, which is when you can start seeing it in the regular portfolio. Till then, it continues to show as pending.

Yes, you can view all your investments through fisdom in one place in the app. Values are updated every working day to reflect the latest balance. You can click on any of the items to drill down into specific goals and funds.

Yes you can. You just need to write a letter to your bank to cancel the mandate.

You can invest in an SIP through the fisdom app by clicking ‘build wealth’ or ‘save for a goal’ or ‘save tax’. In each case, you need to only specify the monthly amount you can invest. The system recommends the funds and once you accept, takes you to a payment gateway. Your net banking opens there and you make the first payment.

Thereafter, we contact you for getting your signature on a bank mandate (called ECS mandate). This authorises your bank to transfer the same fixed amount of money every month to the fund automatically on a pre-defined day. Thereafter no intervention is required from your side.

No, you cannot.

We recommend that you start an SIP for the minimum amount you are confident of sustaining month-on-month. For any additional amount you end up with, you can always invest lump-sum through the app. However, starting the SIP (even if for the smaller amount) gives you the discipline and consistency of investing.

When you invest lump-sum, there is always a risk that you put money when the market was high. If the market goes down in the short term thereafter, you lose some capital.

In an SIP, you put in a fixed amount every month. In a particular month, if the market was high, you earn less units of the fund for your money. If the market was low, you earn more units. That way, you end up buying more units when things are cheap and less when they are expensive. Thus, you are shielded from short term fluctuations of the market and benefit from its growth in the longer term.

An SIP is a systematic investment of a fixed sum of money every month into a mutual fund. It is one of the simplest, yet most effective ways to save money regularly and grow it over time. Once initiated, the process happens every month automatically from the bank account.

We have a robust and tested research methodology to recommend the best set to you. We cover a range of factors:

1. Minimum 3-5 year track record
2. Performance and returns over multiple time horizons: 1yr, 3yr and 5yr (additionally 6m for debt)
3. Performance in bull and bear markets, and during upward and downward movement of interest rates
4. Performance of fund manager in other schemes, and over time
5. In case of equity, diversified portfolio with limited exposure to mid and small cap stocks (which are inherently more risky)
6. In case of debt, funds with limited or no exposure to private sector corporate debt (especially real estate and construction, but also other sectors like paper, logistics, FMCG, NBFC, etc). Other than sovereign debt, we usually only consider funds with banking and / or PSU debt in the portfolio
7. In case of debt, less or more exposure to the yield curve, based on the tenure of the investment