Nifty Beater

By SEBI Registered Investment Advisory MoneyDhan.com

Nifty Beater

By SEBI Registered Investment Advisory MoneyDhan.com

About The Product Nifty Beater

Nifty Beater as the names suggests beats Nifty Index.

There is a capital protection component here that gives zero draw down loss even if nifty falls by more than 16% in a year.
There is a Leverage Component here that enables nifty to give 2x returns in comparison to Nifty Index up-move.

1

In the Above Image,

Black line is Normal Nifty Index.
Yellow Line is Nifty beater, our Product.

2

As long as Yellow line is above Black Line,
Our product Nifty beater Outperforms the
Nifty index or, NiftyETF or even Large Cap

Minimum Capital

5 Lakh rupees and its Multiples

Risk Profile

Holding Period

Ends on date 28th December 2023
( Renewed Every 12 Months )

Fees

            1% of AUA  or,
Rs 5,000 Per 5 Lakh Capital
              GST Extra.

02.

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%

Downside Protection

Till approx ~16% drawdown in Nifty. ( Safety )

Exposure Taken

9 lakh worth Nifty ETF,
Using 5 lakh capital

Upside OutPerformance

Aggressive 2x return.
20% even if nifty growth is 9%.

02.

Proposal

Nifty ETF Performance

0%

-5%

-10%

-16%

-18%

Our Product Performance

No Loss

No Loss

No Loss

No Loss

-1%

Nifty ETF Performance

3%

6%

9%

14%

20%

Our Product Performance

9%

14%

20%

20%

20%

The perfect product, When you believe market can fall anytime. Lock your 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.

Agressive returns With Nifty Beater

At 3% up move in a calendar year,
Product portfolio gains 9%.

Portfolio gains 20% when Nifty hits 9% upside.

Maximum Profit possible is 20%. 
However Nifty requires to give just a small move and, nifty beater gets the upper hand over Nifty Index.

Capital Protection Is a feature here

Even if Nifty Falls more than 10%,
loss in Account is set off by the downside protective Insurance cover.

Put Option is used as the insurance. Provided by trusted Exchange known as NSE of India.

Since we do not see a need of huge protection, The loss will start only if 16% or more fall happens with nifty. This can be customised and extended too.

Loss Starts…

18% fall in Nifty-ETF ;
Product loss is 1% Approx.

24% fall in Nifty-ETF ;
Product loss is 11% Approx.

35% fall in Nifty-ETF is rare in a calendar Year

Even at 35% Fall in Nifty Index,
Our product losses close to 31% only.

This is 4% Alpha. Nifty beater wins by loosing Less than Nifty ETF.

Nifty Beater is better Than NiftyETF.
As long as the Yellow Line Stays above Black Line, Our product is superior.

Nifty must fall 40% down first,
to outperform Nifty Beater.
Note that, loosing less than Nifty is also good performance.

On the Upside, Maximum gain is 20%.
Inorder to outperform Nifty Beater product;
Nifty must go 30% in a year ( rare event). Nonetheless you still end up in profit.

This is Payoff Chart for
December 2023 Expiry

03.

Features

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, year 2023.
Entire Positions winds up and payout is made.

04.

Ongoing Performance

Assumed Capital
1 Crore

Time Taken 
3 Months

Nifty Beater Product Return (Blue)
4.33 Lakh in profit

Nifty Index Return (Black)

0 Thousand in profit

Alpha
4.33 Lakh in profit

05.

Pay-off

Table In percentage & In Rupees​

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.

  • Initial nifty value is the Nifty Price when the Strategy is set up.

  • Assumed Final Value is Nifty close as on 28th Dec 2023

  • Maximum profit is capped at 20%. As a compensation, downside loss is 0.

  • Product beats nifty on up side until 20% rally. Products Looses less than actual nifty, thus beats on down side as well. 

05.

Pay-off

Table In Percentage & In Rupees

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.

04.

Trustable

You have complete ownership and control of your money

Capital Control

Your capital is held in a trading and demat account with a third party broker, the control to which only you have.

Risk Management

We actively manage your downside risk during volatile market conditions using quantitative techniques.

Liquidity

Your investment with MoneyDhan do not have a lock-in. You can choose to redeem your funds anytime.

Dedicated Investment Manager

You are assigned a dedicated investment manager who serves as your financial advisor for your investment, both within and outside MoneyDhan.

07.

Comparison

Only Strategy in India that gives capital protection when market falls.

As an Investment Advisor, it is our responsibility to show the power you hold with your Demat Account.

Nifty gave a negative close of -25% in Year 2011.
Since 2012, Nifty has always given a positive calendar return. It is akin to someone who is running a marathon for past 10 years. A negative calendar close is around the corner.

Mutual Funds cannot buy protective puts (insurance) when market falls

Mutual Funds cannot use leverage strategies to earn profits, in a down market. They are barred from doing so by Regulator SEBI. But an individual investor like you, can do short sell to gain when market falls.

Even if the fund manager is aware of recession or imminent fall, they will not Buy Put options or liquidate stocks.
Remember: If a stock falls from rupees 100 to rupees 50, The loss in percentage is 50%.
Same stock if goes from 50 to 100, The return is 100%. Needs Double effort to break even.

Nifty Beater crosses this Limitations of Mutual Funds

Portfolio Management Service

A Equity long only strategy with minimum investment of 50 Lakhs. The PMS managers advocate to hold or add more capital to average in a falling market. They are not allowed by regulator to short sell or take leverage on the upside.

Stock Broker

A stock broker is someone who could help you with short selling strategies. However they seek constant activity from you, for their brokerages. Here Nifty Beater executes just one trade for one year. Brokers are not your friends.

SmallCase

Every theme based stock portfolio will witness losses when nifty goes down. Non of the products with smallcase can generate profit when nifty falls.
Last 7 years, Nifty never gave a negative close. But Thats a record meant to be broken soon.

08.

Past Performance

Back Test Result --> Nifty Beater (Blue) Outperforms Nifty index (Black)

No Data Found

09.

Things You Need to Know

Here are some more details

Strategies made using Futures and Options are sophisticated.
Here’s what you need to know more

What is the minimum Investment and What are the instruments used?

Minimum Investment is Rupees 5 lakh and we invest in Index Options.

How long is these positions held?

We enter into Options contract that expiry 12 months from now. At present we are helping you in choosing December 2023 expiry contracts.

Is it possible to make profit when nifty falls down?

Yes. Futures is a contract which allows you to sell nifty first. Once nifty falls down, you can exit and book profits. These profit will be the difference between your entry and exit price in Nifty. You loose when nifty goes up.

How can you assure capital is protected in case market moves up?

We use Index contracts knows as Call option buy. It’s the financial term used for what you may know as an”insurance protection” in case, nifty goes up in a year. 

How are derivatives taxed?

Derivatives income is considered as income from non-speculative business and taxed under the head “Income from business”. Generally derivatives are taxed as per your tax slab.

10.

Fees

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

 

Start Your KYC

MoneyDhan follows SEBI Procedures
  • Risk profile & Suitability Assessment
  • EKyc & Onboarding
  • Strategy Details
  • Financial & Goal Planning

11.

FAQs

The 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.

Lockin means, if there any minimum commitment of time required before you can ask the capital back. Many Mutual funds charge ” Exit load at 1%” to discourage you from withdrawing money within 1 year.

We at moneydhan, An SEBI registered Investment advisory do not have any Lock-In nor exit load whatsoever. No strings attached. You can enter or exit at anytime. 

But the desired result comes if you hold till contract expiry at NSE. ( December 2023)

As a Sebi Registered Investment Advisor, we can only provide you with guidance about execution via email.

You get the trade executed, by following our instructions, with your broker.

You own the Demat account, opened with your Stock broker using Your pan, adhaar etc.

An Demat is an electronic vault where you hold all your electronic assets. Its 100% safe and under your legal custody.

Yes. Using NRO account

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.

Derivatives income will be taxed as Business Income.
Thus the tax is paid after your expenses incurred.

Side note:You can use the fee paid to us as expense as well.

Individual,

Non Individuals like Partnership Firm,Corporates,

Hindu Undivided Family (HUF),
Trust,
NRI – NRO