Nifty Beater
By SEBI Registered Investment Advisory MoneyDhan.com
Nifty Beater is an interesting product which earns profit on upside if nifty goes up. But avoids losses when nifty goes downside, with certain stipulations.
Nifty Beater is an interesting product which earns profit on upside if nifty goes up. But avoids losses when nifty goes downside, with certain stipulations.
The product takes exposure in Nifty. Solves the problem of ” what if nifty falls down?” The strategy protects your capital on the down side (Upto 18%).
This is the achieved by taking downside capital protection insurance for nifty. There will be a capping on maximum profit at 20% (You earn 20% even if nifty goes up just 10% in a year). This is the “Give up” part in a fair Give & Take set up.
Comes with a pre-defined Pay-Off chart. Executed in Dec 2023 Expiry. Using 5 Lakh, You get to own Nifty ETF worth 9 lakh. Upto 20% return even if Nifty moves up by only 10% in a year. Suitable for those who want to lock-in their large cap holdings at all time high. Better product for Nifty ETF holders. This beats Nifty. Nifty generates 12% CAGR on long term. This set up will beat nifty on upside and downside too.
Nifty Beater Products – Hedge Funds (Structure Products)
Hedge fund in India is knows as Alternative Investment Funds Category 3. These are the funds which can make money even when market falls. Unlike mutual funds, Portfolio Management Services or other stock related products which make profits only if shares go up.
Well, what will investors do when shares are about fall?
When share falls, the best option available to us all is an exit from stocks and convert the holdings into cash.
Then we sit quiet, Wait out the fall and re-enter those stock at lower price, in hope of a rally to upside in market.
Meanwhile an hedge fund short sells stocks and earns profits from falling market. An luxury which normal market products are barred from utilising, by regulator SEBI.
But HEDGE fund is not for all.
Hedge Fund needs you to invest minimum of 1 crore as capital. While you get services from Mutual funds at a cost as low as 500 rupees capital.
But hey, we found a small loop hole here.
What these Hedge Fund do is pool your money, into a single account.
Just like a mutual fund pools your money, into single account. They give you an NAV (Net Asset Value)
You will be pleasantly surprised that, you can execute the same strategies that a hedge fund executes, in your own demat account. There is no restriction whatsoever on an individual, from regulator SEBI.
All you need is a proper guidance to manage this double edged sword. Enters a SEBI registered Investment Advisor like Moneydhan.com
We send our advice to you, over email. Which can be executed by you in your own demat account.
Since money is not pooled anywhere, you get the benefits of hedge fund strategies without committing 1 crore.
SEBI-RIA INA200016193
When Nifty gives 10% in a year
This product generates upto 20%
- Takes an exposure of 9 lakh worth Nifty using 5 Lakh.
- Here the leverage is safe since, nifty will never go to zero.
- Think of buying a 9 lakh worth property using 5 lakh Down Payment.
When Nifty gives 0% in a year
This product gives zero returns.
- Takes an exposure of 9 lakh worth Nifty using 5 Lakh.
- Here the leverage is safe since, nifty will never go to zero.
- Think of buying a 9 lakh worth property using 5 lakh Down Payment.
When Nifty gives 0% in a year
This product generates upto 0%
When Nifty Falls 10% in a year
This product gives No Loss via capital Protection.
- Risk profile
- Suitability Assessment
- eKYC
- Onboarding
Minimum Investment Amount
Minimum Investment Amount
₹ 5,00,000
As per SEBI mandate, we can advise only after Onboarding formality. No hidden charges for Onboarding.
Fees Structure
We are charging 1% as Annual Maintenance fees.
- Rs 5000 + GST for capital of Rs. 5 Lakh
- Rs 1 Lakh + GST for capital for 1 Crore
* GST Extra
If you have more query kindly connect with us.
Start Your KYC
MoneyDhan follows SEBI Procedures-
Risk profile & Suitability Assessment
-
EKyc & Onboarding
-
Strategy Details
-
Financial & Goal Planning
Comparison with other Investment Options
| Instrument | Principal Protection | Liquidity | Market Risk | Credit Risk | Potential of Maximizing Return |
|---|---|---|---|---|---|
| Structured Products | Available | Low/None | Low | Low/Medium | High |
| Bank Fixed Deposits | Yes | Medium/High | None | Low | Low |
| Mutual Funds | No | High | Medium/High | None | High |
| Direct Equity | No | High | High | None | High |
| Derivatives | No | High | Very High | None | High |
Pay off table
The above table is for illustration purpose only. The Final figures are subjected to change based on Initial Nifty Value, Assumed Final value. As per SEBI guidance, we are not promising or guaranteeing this outcome.
Back Testing
Nifty Beater (Blue) Outperforms Nifty index (Black)
No Data Found
Proposal
DrawDown
| Nifty | -18% | -16% | -10% | -5% | 0% |
|---|---|---|---|---|---|
| MoneyDhan Product | -1% | No Loss | No Loss | No Loss | No Loss |
UpMove
| Nifty | 3% | 6% | 9% | 14% | 20% |
|---|---|---|---|---|---|
| MoneyDhan Product | 9% | 14% | 20% | 20% | 20% |
The perfect product, When you believe market can fall anytime. Lock You gains, without giving up on the potential upside rally.
Protect your Large Cap Mutual funds gains when market makes all time high. Since it protects capital on downside, to a certain limit.
Get an exposure in nifty worth 9 Lakh using just 5 Lakh rupees. Generate 20% return using the Nifty Beater Product, even if nifty goes up by just 10% in a year.
Proposal
Nifty ETF Performance
Our Product Performance
0%
-5%
-10%
-16%
-18%
No Loss
No Loss
No Loss
No Loss
-1%
Nifty ETF Performance
Our Product Performance
3%
6%
9%
14%
20%
9%
14%
20%
20%
20%
The perfect product, When you believe market can fall anytime. Lock You gains, without giving up on the potential upside rally.
Protect your Large Cap Mutual funds gains when market makes all time high. Since it protects capital on downside, to a certain limit.
Get an exposure in nifty worth 9 Lakh using just 5 Lakh rupees. Generate 20% return using the Nifty Beater Product, even if nifty goes up by just 10% in a year.
Why Nifty Beater?
Better Than Nifty
An Alternative to NIFTY ETF / NIFTYBEES.
Capital is protected
Even if nifty falls by more than 15% in a year. There is no loss.
Better Returns
Achieve leveraged return of 20% in your portfolio, even if nifty goes up by just 10% in a year.
Complete Control
Executed in your own Demat account. Just one trade for entire year.
Pay-Off Guaranteed
The settlement is guaranteed by National Stock Exchange.
Pre-Defined Time Period
Contract ends after December Month of year 2023. Entire Positons winds up and payout is made.
Better Than Nifty
An Alternative to NIFTY ETF / NIFTYBEES.
No Data Found
Capital 1 Crore
Nifty Index is 2 Lakh in profit.
Nifty Beater is 4.4 lakh in profit.
Alpha of 2.2 % over Nifty Index/ Nifty ETF/ Nifty BEES
Better Than Nifty
An Alternative to NIFTY ETF / NIFTYBEES.
Capital is protected
Even if nifty falls by more than 15% in a year. There is no loss.
Better Returns
Achieve leveraged return of 20% in your portfolio, even if nifty goes up by just 10% in a year.
Complete Control
Executed in your own Demat account. Just one trade for entire year.
Pay-Off Guaranteed
The settlement is guaranteed by National Stock Exchange.
Pre-Defined Time Period
Contract ends after December Month of year 2023. Entire Positons winds up and payout is made.
Payoff on the upside
Profit is 9% in portfolio. Even when Nifty is just up by 3%.
Profit is 20% in portfolio. Even when Nifty is just up by 9%.
Profit is 20% in portfolio. Even when Nifty is just up by 14%.
Profit is 20% in portfolio. Even when Nifty is just up by 20%.
Payoff on the downside
Profit is 0% in portfolio. Even when Nifty is just up by -2%.
Profit is 0% in portfolio. Even when Nifty is just up by -8%.
Profit is 0% in portfolio. Even when Nifty is just up by -13%.
Profit is -1% in portfolio. Even when Nifty is just up by -18%.
- Underlying Nifty 50 Index
- Rebalance Frequency Annual
- Next Rebalance December, 2023
- Exposure 9 Lakh worth Nifty (Futures)
- Capital Used 5 Lakh Rupees
- Maximum Profit: 20%
- Best Performance: When nifty gives 10%, Product generates 20%.
- Downside Protection: Yes (Upto 15-18%)
Product Related FAQs
The downside risk starts once nifty crashes beyond 18%.
When nifty Falls till 12000 (At present 18300 at the time of writing this), Fall is 35% for your NiftyBees/ETF.
The Nifty beater loss will be 30% (loosing less is also beating)
Yes. You can exit at any time. You are in full control of your demat account.
Be informed that, the outcome depends on exit price, provided to us by Exchange via your stock broker. The intended result comes if position
Quarterly profit payout image
Yes. You are in full control of your demat account.
Yes. IF you fear a fall in nifty price is possible. You can use NIFTY beater which will give you nifty exposure worth 9 lakh, with downside protection.
No. There is no lock-in period. You can enter or exit at anytime.
But the desired result comes if you hold till contract expiry at NSE. ( December 2023)
Option 1) Email us on moneydhanadvisor@gmail.com with your name, requirement and phone number. We will reach out to you and assist you for onboarding.
Option 2) Fill your details in contact us in Moneydhan.com website . We will reach out to you and assist you for onboarding.
Option 3) Click on HireUS on NiftyBeater. It will redirect to onboarding platform where you need to fill in below details as per SEBI mandate
i) Fill your risk profile.
ii) Understand the suitability assessment and risk profile analysis according to your risk apetite.
iii) eKYC i.e You also need to authenticate your KYC details (pan card, Aadhar)
iv) eSign of Agreement using AADHAR otp. It hardly takes max of 10 minutes for onboarding. Thats it! Sit happily . Our relationship manager will assist you with your financial planning within 48 hours.
Yes. We proudly say that we are associated with SEBI. We are among the 1334 RIA at present in India.
Our registration number is Registration No. INA200016193 (Type of Registration- Non-Individual, Validity of Registration- Perpetual). You will be able to verify from SEBI portal.
We do onboarding. Only after you fill the risk profile and we understand your risk apetite then only we proceed with portfolio planning and proceed with investment advice.
5000rs/- Plus GST per 5 lakh capital deployed by you.
If you are exiting the Mutual Fund and buying bond, it is a personal choice. Buying bond will get you average 7% returns per year for sure. Nifty Beater will not give any return if market falls. Buying bond seems like a good option.
Liquidity is the major factor. We can enter and exit in Nifty related products easily, in comparison to individual stocks whre we might not get other side party for execution.
No. This performance does not include the tax calculation.
Every individual has there own post profit tax. We can provide you CA guidance to find your Tax implication, if requested.
Using 5 Lakh we take an exposure of 9 lakh worth nifty. We use futures Buy yes.
We create synthetic Futures which take care of the roll over costs with just one time set up.
This is a one time set up. Thereafter we do follow up every bi-weekly. If there is a way where we could enhance the performance of the strategy, those updates will be provided to you via email.
Every 2 weeks, we do check out if the positions is doing well in your dmeat account. We have a model of same strategy internally with us. So we are aware of ongoing fluctuations in Profit and Loss statements.
Option is an derivatives contract. In that we can purchase PUT options, which provides us with protective insurance, incase nifty falls down.
We are funding this insurance premium by forgoing the upper profits beyond 20%. When we make such a sacrifice, we are rewarded with some funds. We take these funds to pay the insurance protective Puts for downside.
Our Relationship Manager will be appointed for you. They will hand hold you and guide you with each execution. Don’t worry, you will not get it wrong.
Yes. You can have any number of doubt clearing sessions with our RM. They are always available via email and whatsapp channel
We are Futures & Options Professionals
The Risk
Why It Happens
Ways We Help
Losing more than your deposit on a trade
CFDs are leveraged, so you only need to put up a fraction of your position’s value to open it but your profit or loss could be much more than your initial deposit
You can buy protective insurances to define the level of maximum loss.
Having your positions closed unexpectedly
You need a certain amount of money in your account to keep your trades open. This is called margin, and if your account balance doesn’t cover our margin requirements, we may close your positions
Keep an eye on your always-visible running balances in our backend, and the minimum capital already incorporates this risk.
Losing more than the money in your account
Sometimes your positions may be closed out automatically by broker. leaving you with a negative account balance
The minimum capital is first layer of protection. Second is the hedge fund insurance protection. This ensures you can never loose more than 100% capital.
Sudden or larger-than-expected losses
Markets can be volatile, moving very quickly and unexpectedly in reaction to announcements, events or trader behaviour. This could have significant bearing on your open positions
As well as setting stops and protective hedge buys helps us in knowing the worth case scenarios before hand.
Having an order filled at a different level to the one you requested
When a market moves a long way in an instant – or ‘gaps’ – any orders you have placed may be filled at a worse (or better) level than the one you requested. This is called slippage
All our trade advise can be executed calmly with hours of delay. Since there is no rush, you can opt for limit orders with broker. Slippage occurs when execution is time sensitive.
| Year | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 |
|---|---|---|---|---|---|---|---|---|---|---|
| Nifty | -18% | -16% | -10% | -5% | 0% | |||||
| MoneyDhan Product | -1% | No Loss | No Loss | No Loss | No Loss |
Factsheet
Frequently Asked
Questions
Who is MoneyDhan.com ?
MoneyDhan is a Sebi Registered Investment Advisor which guides you with Demat Account Management.
The intention is to use Stock Market as a source of income which could provide sufficient wealth appreciation inorder to meet future Financial Goals for every Indian citizen.
Is my Money Safe?
Yes. It is safe and secure from any kind of potential fraud or glitch of the system.
We do not accept any of your capital. You fund your own demat account, opened under a legal exchange governed stock broker. (Zerodha/Sharekha/motilal oswal etc). They hold your capital whereas moneydhan just advises you, on the action to be taken in your demat account.
How Do I Fund My Account?
Internet banking( RTGS), Online Payment gateway from Motilal’s app, UPI are various modes of transfer. We do not accept Cash.
Demat Account LT, Does It Suit Me?
- Any person who can volunteer for some risk.
- A cash saver of 5 thousand or above can fund his/her demat account.
- Someone who don’t need the capital back for 3 years at the least.
Not for those who will need the invested capital back within 3 years.
For short term, we utilize debt fund.
We will suggest you the best available asset that would create long term wealth for you.
How Do I Withdraw Money From My Account?
You can withdraw cash from your account at any time. All you have to do is initiate the withdrawal process from the ‘Payout’ tab on the mobile app or desktop. The money will be wired directly to your bank account. It may take the same 2 hours – 4 business days for the Amount to reflect.
What are the documents required?
Required documents
- Pan card (color copy)
- Adhaar card (both sides/color)
- Passport size pic (color)
- Your mother name
- Your place of birth
- A pic of cheque
- Email id
- Mobile number
- Married or single
Then, any one of the following
6 months bank statement upto July end
or
3 month pay slip
or
form 16
or last 3 year ITR acknowledgement
Who Executes My Order?
We seek permission via Registered email before every execution.
Using our master terminal, we execute the order, in your account.
Via mobile app from the broker, you can always verify the Trades, Profit or Loss, net balance lives.
How frequently you do transactions in equity?
Our preferred transaction is “Never Exit”
However if a company screams out a fundamental deterioration, we will migrate that capital to better opportunity (stock).
Can you use existing Demat Account?
We are SEBI Registered Authorized Personal. This means, we request you to open a new Demat Account under our franchise.
We do not take control of your existing Demat account. However, you can easily shift your Shares/MF holdings to new Demat account opened under our franchise.
Minimum Amount Required?
We are SEBI Registered Authorized Personal. This means, we request you to open a new Demat Account under our franchise.
We do not take control of your existing Demat account. However, you can easily shift your Shares/MF holdings to new Demat account opened under our franchise.
What Will Happen if Moneydhan Goes Down?
If we don’t exist, surely the Motilal Oswal team will be there to service your needs. Under no circumstances, you would have an issue with your holdings or payouts.
Who Executes Order In My Account?
We are Authorized Personal for your Demat account. This means, we have access to your Demat account from our master terminal.
We execute your trade order. But we require your permission as email first. For every Single transaction, we need this permission. That is the compliance part.
Using mobile App from the broker, you can always verify the Trades, Profit or Loss, net balance lives.
What Is Your Fee Structure?
We request 10 thousand from you. After you gain 1 Lakh profit.
