Recession Gainer

By SEBI Registered Investment Advisory MoneyDhan.com

Recession Gainer

By SEBI Registered Investment Advisory MoneyDhan.com

01.

Intro

01.

Intro

An Product for falling markets

Earn when nifty falls. We use Futures and Options to create a financially engineered product that generates positive returns when market falls. If Nifty falls 13% in a year, recession gainer product generates upto 20% profit. Also, it do not loose capital even if market rallies up by 20% in a calendar year. 

Suitable for those who wish to hedge their existing large equity exposure. There is literally no product that earns profit if market falls. MoneyDhan has created a structured product just for that. In true sense, an Hedge Fund strategy for retail investors.

For whom?

☞ Anyone with a demat account.

Expected Maximum Return?

☞ 20% if nifty falls more than 10% in a year

Loss?

☞ Capital protected on the upside upto 15-20% of nifty.

Instrument Used?

☞ Nifty Futures short sell, along with Options contract from NSE.

For whom?

☞ Anyone with a demat account.

Expected Maximum Return?

☞ 20% if nifty falls more than 10% in a year

Loss?

☞ Capital protected on the upside upto 15-20% of nifty.

Instrument Used?

☞ Nifty Futures short sell, along with Options contract from NSE.

Minimum Investment Amount

₹ 5,00,000

As per SEBI mandate, we can advise only after Onboarding formality. No hidden charges for Onboarding.

  • Risk profile
  • Suitability Assessment
  • eKYC
  • Onboarding

02.

Proposal

02.

Proposal

Nifty DrawDown Gives Profit

Nifty -2% -5% -8% -10% -13%
MoneyDhan Product 0% +5% +10% +15% 20%

Nifty UpMove gives no loss upto 20%

Nifty 6% 9% 11% 14% 17%
MoneyDhan Product No Loss No Loss No Loss No Loss No Loss

The only product in India that generates profit, When you believe market can fall anytime.

Hedge your mutual funds profits. When Mutual fund falls in value, this product earns for you.

If nifty falls in a calender year, Generate upto 20% return using the Recession Gainer Product. Upside is protected upto 20% rally too.

03.

Features

03.

Features

Better Than Profit booking
Use this strategy to earn profits if nifty falls in a year.

During Up-Move Capital is protected
While the strategy earns when markets fall, it also protects capital upto 20%*  when nifty goes up.

Better Returns
Achieve leveraged return of 20% in your portfolio, even if nifty falls down 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.

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.

Recession Gainer Performance?

No Data Found

Assumed Capital
1 Crore

Nifty Index Return
2 Lakh in profit

Nifty Beater Product Return
4.4 lakh in profit

Time Taken
1 Month 

No Data Found

Assumed Capital
1 Crore

Nifty Index Return
2 Lakh in profit

Nifty Beater Product Return
4.4 lakh in profit

Time Taken
1 Month 

04.

Pay-off

04.

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%. If nifty falls.

  • Product provides capital upside protection until 20%* rally. 

Expiry day ( Dec 2023) Pay-Off chart will look like this.

The above table is for illustration purpose only. The Final figures could be different. As per SEBI regulatory guidance, we are not promising or guaranteeing this outcome. Please check Disclaimer.

  • When nifty falls 13%, Recession gainer gives 20%* return approx.

  • When nifty falls -5%, Our product provides 5%+

  • Capital protected even if market goes up, against you.

  • Upside rally till 20% in nifty, can be protected

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.

No Data Found

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%.

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%.

05.

Things you need to know

05.

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.

06.

FAQs

06.

FAQs

The product shorts nifty. Which means loss happens if markets (Nifty) goes up. However, The capital protection component will be active until nifty goes up 20% in a year. The loss starts when nifty closes above 20% from the “entry levels” by client

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 you honour the NSE option contract till December 2023.

Quarterly profit payout image when nifty goes up and the recession gainer will have loss.

premature exit in case market falls.
This is just an approximation. The final figure can have deviations.

Yes. You are in full control of your demat account.

Yes. If you fear a fall in nifty price is possible. You can use recession gainer which will give you nifty exposure worth 9 lakh for short selling. And a reasonable upside rally 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) 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.

 

Option 2) 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 3) Fill your details in contact us in Moneydhan.com website . We will reach out to you and assist you for onboarding.

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.
Recession Beater will not give any return if market runs up.
But after exit, if you believe market will fall, use Recession Gainer

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

Comparison with other Investment Options​

Instrument Principal Protection Liquidity Market Risk Credit Risk Potential of
Maximizing Return
Recession Beater Available Low Low Low 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

07.

Camparison

07.

Comparison

Only Strategy in India that makes profit 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 earn when market falls

Mutual Funds cannot use short sell 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 fall.

With an MF, the investor must bear the pain of draw down in a bad year. 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 is50%.
Same stock needs to double by giving 100% returns to cover that 50 rupees loss.

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.

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.

Stock Broker

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

We are Futures & Options Professionals

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

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.

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.

At the account opening KYC stage, you would have submitted us with a bank proof. Payment from that bank account ONLY will be accepted.

Internet banking( RTGS), Online Payment gateway from Motilal’s app, UPI are various modes of transfer. We do not accept Cash.

  • 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.

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.

Required documents

  1. Pan card (color copy)
  2. Adhaar card (both sides/color)
  3. Passport size pic (color)
  4. Your mother name
  5. Your place of birth
  6. A pic of cheque
  7. Email id
  8. Mobile number
  9. 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

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.

Our preferred transaction is “Never Exit”

However if a company screams out a fundamental deterioration, we will migrate that capital to better opportunity (stock).

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.

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.

Your Demat is under CDSL where all the stocks/Mf holding is safely stored. Accessible to your direction as well, without our presence.

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.

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.

 

We request 10 thousand from you. After you gain 1 Lakh profit.

08.

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

If you have more query kindly connect with us.

Start Your KYC

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

              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