MoneyDhan > Our Products > Mutual Fund Beater

Mutual Fund Beater

 

Make close to 6% to 8% every year on top of your Mutual Fund Returns.

A Mutual Fund or Portfolio Management Service (PMS) is a LONG ONLY strategy. This means you can buy first and sell later. However, there is no cash flow coming out except for dividend payouts.
A Demat account has unique features where, it can participate in derivatives products from stock exchange that can help us in generating additional cash flow per month.

 
 

Built for Alpha returns

    • Demat account owner is a individual who is free of any restrictions.
      A stock broker is allowed to provide Margin against your holdings.
    • We implement a combination of derivatives structure to bring reasonable returns with limited volatility. We generate cash Irrespective of markets direction.
    • Without compromising upon the gains from Mutual fund. Consider this additional cash flow akin to (rental income) per month. While the underlying Mutual Fund is your long term asset.
    • This cash flow can be your payout or, used for accumulating more equity/MF for long term portfolio growth.

We request you to drop a “HI” on our whatsapp. Our Request for a call back via our Contact US Page

 

Trust

  • You can withdraw capital in single payout click, you have access to your MTM and net worth details Live in mobile app.
  • Before every execution we ask for approval from you as email,call recording.

We request you to drop a “HI” on our whatsapp. Our Request for a call back via our Contact US Page

 

Portfolio

    • This portfolio invests 80% of capital given in Liquid Debt Fund. This liquid debt fund generates 7% p.a.
    • Remaining 20% of capital will be kept as a cash for MTM purpose.
    • Liquid Debt fund chosen here is Nippon India Liquid Fund (formerly known as Reliance Liquid Fund).
    • Think of buying a flat (MF) where you get 7% Rental Income (Returns). We get Loan Against Property (Margin against MF) at 0 cost, take that amount for 6 % (our Alpha).
      Netting 7% + 6% = 13% (rental + Alpha)

We request you to drop a “HI” on our whatsapp. Our Request for a call back via our Contact US Page

 

Assume you fund your demat account with Rs 10 Lacs. Breakdown will be as follows.

    • Nippon India Liquid Fund will be purchased worth Rs 8 Lacs. Against this asset, our stock broker will provide us Rs 7 Lac as a margin.
    • Remaining Rs 2 Lakh cash will be kept for Mark-To-Mark (MTM) purpose.
    • Here, Liquid fund generate approx. 7% p.a. And our derivatives strategy holds a potential generate additional 6-8% per annum with an average , per month return between 0.5% to 1% – upon Rs 10 lakhs . This is your Alpha with us.

We request you to drop a “HI” on our whatsapp. Our Request for a call back via our Contact US Page

 

Risk

    • Max drawdown is 3% to 4% in a month upon Rs 10 Lac.
    • Probability of this drawdown occurring is, once in every 18 months. Which means, 17 attempts we win but 1 attempt that we loose would set you back by 4 months worth income.
    • This is a fair risk exposure w.r.t the reward you envision.

We request you to drop a “HI” on our whatsapp. Our Request for a call back via our Contact US Page

How Does this work

 

1. KYC

Demat Account is opened using your “know Your Customer”(KYC) documents.
We have partnered with one of the top leading stock broking firm. This is a paperless process.

2. Fund

Fund your Demat Account via internet Banking.

Its secure. The payment is accepted only from the bank account (yours) approved at KYC stage. Similarly, Payout will go to the same bank account. One bank Account for Pay-in and pay-out. Nobody else can take touch your capital ever.

3. Risk Profile

This is where we will have a discussion about your future financial goals. Dependents, Upcoming financial commitments. We risk profile you based on the data.

Idea is to tailor make a portfolio for optimal returns that suits your age & risk capacity.

4. Permission

We consult you before every BUY or Sell in Demat Account.
We seek your permission as email or call recording.

Post this compliance step, we execute that order in your Demat account via, our master terminal.

All you need to do is confirm email which we send 15 hours before market opens.
we do not take spontaneous trades. Everything is pre-planned.

5. Monitor

You, as the owner of this Demat account gets complete access via mobile app. Monitor and stay updated with your account 24X7.

You do not have to share your password with us. Being SEBI registered AP, We have access to your account from our back-office.

You can click on “Request Payout” in app & pull out capital any time. Download all the reports for Income Tax filing in one click.

6. Grow wealth

No fee, No Charges, No exit Load, No lock-in period, No expense Ratio, No AMC, No pooling of your money, No un-authorized transaction.

We request for Rs 10 thousand after you earn 1 Lakh profit. The Mobile app should show you the profits.

How it works

Sophisticated investors do this all the time. Now it's your turn.

You don’t always have to invest cash for derivative trading, in fact, most HNIs don’t. Moneydhan will first collateralize your mutual funds with the stock exchange.

For every asset that you put up, you receive margin after a ‘haircut’. For example, if you collateralize funds worth ₹10 lakhs, the exchange might give you a margin of ₹8 lakhs for derivative trading, the difference of two lakhs is kept by the exchange to protect itself from market downsides. This is referred to as a ‘haircut’.

We use the margin gained from your mutual funds to execute very conservative derivative strategies. These strategies consistently generate returns between 0.8%* to 1.2%* every month.

Regular Income

Earn a monthly income, choose to redeem it for your expenses or reinvest it to benefit from compounding.

Low Risk

Moneydhan aims to mitigate risk first and then generate returns.

No additional Investment

You leverage your existing equity or debt funds invested with Moneydhan. No additional monies need to be invested.

04________________Few things you should know
Risk Management

Margin Expansion

During periods of extreme volatility in the stock markets, margin requirements for derivatives may increase. This may require us to close some of your open positions leading to losses.

Liquidation Risk 

In case of a loss from derivative positions, your underlying mutual funds may be liquidated unless replaced with additional capital.

 

 

Capital Risk

In periods of correcting markets, value of your mutual funds may drop. This will lead to lower margin available and lower income from Beater Strategies.

 

Risk Reduction

Our approach inevitable needs a strong risk management system in place. Our objective is to protect capital fiercely, then earn returns.

04________________Purpose of Mutual Funds ?
Add-on 6% extra returns from Your existing Mutual Funds.
You don't always have to invest cash for derivative trading. Your stock broker is allowed to provide Margin against your holdings.

Hair-Cut

For every asset that you put up, you receive margin after a ‘haircut’. For example, if you collateralize funds worth ₹10 lakhs, the exchange might give you a margin of ₹8 lakhs for derivative trading, the difference of two lakhs is kept by the exchange to protect itself from market downsides. This is referred to as a ‘haircut’.

We use the margin to execute very conservative derivative strategies. Objective is to earn just 6%+ per year along with MF
03________________Why is this product not popular ?

Lack of Professionals

You have hired a fund manager via Mutual Fund to manage stock picking and managing it. They are the professionals w.r.t debt or stocks. For Derivatives, Skilled professionals are not so popular. SEBI restricts MF and PMS to particulate in derivatives with leverage. However Advisors like us can guide you in your individual Demat Account.

Ridiculous 

The retail experienced traders community aim to generate 20%-30% returns per year from derivatives. An 6% extra derivatives income in a year is ridiculously easy for many of them. They mock this product. We believe, Since you have Hired a fund manager via MF already, its likely that you have no clue about derivatives as well. It is notorious for losses. Bear in mind, our expectation is close what a Bank Interest Rates are. This low expected returns makes it fairly low risk.

04________________Capital Gains Report
Performance
Capital Gains Report is an authentic proof.
Each person receives an personalized Portfolio. Even though our stocks are similar ; The portfolio allocation, stock exposure, its purchase price and timing of entry varies for every individual. This is done keeping in mind your personal Financial goals. Except for Tax loss harvesting benefits, we do not churn portfolio. This saves your brokerage and other transactional charges. A true Long term Equity portfolio in every sense.
  • Mr.Seshadri

    Mr Seshadri is a SEBI registered Investment Advisor himself. 20 years Risk Head at IL&FS Securities. He hired us to explore how we operate. Our business model seemed quiet attractive to him. Seshadri sir, gave us 5 lakh to a year. With a mandate to beat nifty.
  • Mahesh

    Mahesh is a CA from Pune.
  • Mr. Kush

    Trusted us with 20 Lakh at first go itself. After checking on our progress, he was kind enough to add another 10 Lakhs into his own Demat Account, which we manage.
  • Mrs. Shruthi

    Mrs Shruti opened Demat Account in February Month 2020. A question was raised by an enquiry recently. How did the account perform, which was opened in February month. February saw all time high for Nifty. In March, due to covid 19, Nifty crashed by 30%.
  • Mr. Shubham

    Mr Shubham is from Delhi. A young Financial Market enthusiast who is working for a US based Mortage Lender. Objective here is to accumulate amount for his retirement and provide some cash flow for monthly expenses. We are good at managing various risk so that the portfolio Stays steady and grows consistently.
  • Mr. Gala

    Mister Gala is a Marwari businessman, with deep pockets, for high-risk tolerance. We implemented a directional, long-only, leveraged,...
  • Mrs. Swathi

    Last 1 year (Jan 2019-2020) performance for a mother of two kids. Earning a decent salary.
  • Mr. Sukhdev

    Mr. Sukhdev is the one person who has seen our worst numbers in his account. Faced Il&FS crisis, 2019 election , Tax reform rally, 2020 budget crash and march covid crash
08________________OnBoarding
Am sold. How to Start?
  • 1. Connect UsWe will understand your profile.
  • 2. Know Your Customer DocumentsWe need some soft copies that verifies your identity.
  • 3. Agreement between you and usThe agreement mentions your risk profile, the kind of guidance, mode of guidance, service cost etc.
  • 4. Assign us your broker accountShare us the details. Funds in your account. Existing Holdings if any. Capital Gains report etc..
  • 5. We reach out with our email/SMS/Whatsapp etc You execute the trades in your own demat account
  • 6. Share your performance reportsOnce every month share us your Holdings and Capital Gains report.
We request 1% of Asset Under Advisory (AUA) upfront. Say 5 thousand upon 5 Lakh capital. At year end, this is adjusted against the profit share of 10%. Assume you gain 50 thousand profit upon 5 lakh by year end. 10% of 50 thousand is 5 thousand
8 _____OnBoarding
Am Convinced. How to Start?
  • 1. Connect UsWe will understand your profile.
  • 2. Know Your Customer DocumentsWe need some soft copies that verifies your identity.
  • 3. Agreement between you and usThe agreement mentions your risk profile, the kind of guidance, mode of guidance, service cost etc.
  • 4. Assign us your broker accountShare us the details. Funds in your account. Existing Holdings if any. Capital Gains report etc..
  • 5. We reach out with our email/SMS/Whatsapp etc You execute the trades in your own demat account
  • 6. Share your performance reportsOnce every month share us your Holdings and Capital Gains report.
We request 1% of Asset Under Advisory (AUA) upfront. Say 5 thousand upon 5 Lakh capital. At year end, this is adjusted against the profit share of 10%. Assume you gain 50 thousand profit upon 5 lakh by year end. 10% of 50 thousand is 5 thousand