FAQs

 

Who is behind IAI?

We are a team of finance professionals, lawyers, data scientists, and software engineers. IAI is at the leading edge of a shift in financial services towards transparency and affordability.

What are the financial products you deal in?  Are you able to manage my taxes arising of it?

We currently deal in the following products:

  • Equity (BSE and NSE)
  • Commodities (MCX)
  • Mutual Funds (all 43 fund houses/ asset management companies)
  • NCDs (corporate/ listed/ unlisted)
  • Insurance
  • Fixed deposits (Banks and corporate)
  • Structured products

We definitely can provide you with a capital gains and dividend statement which can aid your accountant in filing your returns or for a small fee; we can do the filing for you.

Do you deal in non financial products too?

Definitely, we are capable and willing to provide advisory services when it come to certain physical assets such as real estate, physical commodity and green energy (wind and solar). However, our reach in case of physical assets is limited to certain geographies only. However, on a need based model, your “Personal Investment Office” is always their either to hand hold you or point you in the right direction.

I don't have any investments currently apart from my savings and fixed deposits. Can I still join?

Yes, we can help you open investment accounts with any service provider of your choice or as per our recommendation. All we require is your PAN card and another address proof to proceed.

What is the minimum investment size to be associated with IAI?

The minimum amount depends on which service you access:

  • Portfolio analysis – No minimum
  • Client profiling – No minimum
  • Advisory (Investments and tax) – No minimum
  • Portfolio management services – INR 10,00,000 (Ten lakh/ one million Indian rupees)

Do I have to sell or liquidate my investments prior to have IAI manage them?

No. We manage your accounts the way they are today. If your accounts are already with certain service providers, we're simply a management layer you add over your existing accounts. If your accounts are elsewhere and you want to switch them to cost effective options, we do the paperwork to consolidate them at our recommended service providers as part of IAI's services.

Who is eligible to use IAI?

To be registered with IAI, you must be a legal Indian resident, over 18 years of age, and you must have a valid Permanent Account Number.

Who is actually managing my portfolio on a day-to-day basis?

Portfolio monitoring is done by our fund managers who verify the inputs provided to them by our financial analysts who track the domestic and international market round the clock to generate trustworthy and real time recommendations. If the Recommendation process proposes adjustments to the portfolio of a particular client, they are reviewed by our investment team before being executed. You can add a layer of check where your authorisation is necessary for us to make any changes in your portfolio.

Will I be given a preview of my proposed re-allocation? What about subsequent trades?

Because the initial re-allocation can significantly change your portfolio, we send a preview email two days in advance. The email provides details on the improvements we intend for your portfolio, allowing you access to our list of prospective trades. Apart from that, we shall discuss the re-allocation on phone to ensure that your goals are in line with our rationale.

Thereafter, we will keep on notifying you whenever the need arises on a fixed frequency basis before re-allocating. However, to ensure efficiency, we can have a broad approval from your end as subsequent rebalancing serves to fine-tune your initial allocation. Or as aforementioned, we can build a pre-check and authorisation from for every rebalance.

When do you re-allocate?

Following the initial rebalance, we continuously monitor your portfolio. When your assets drift outside their target allocation, or when life alters your investment profile, risk tolerance, or retirement plan, we're standing guard, ready to rebalance your accounts in an instant. On average, a portfolio is rebalanced a maximum of two times per year. Our aim is not to churn your portfolio, however, if the situation demands, we even are open to rebalancing your portfolio once a month in consultation with you.

Can I override your investment decisions?

Why not, we allow clients to "lock" individual stock holdings they want to keep or disapprove of our recommendations. We will ensure that we point you in the right direction and it is solely your choice, whether to tread that path or not. As your investment advisor we take responsibility for the overall suitability of your portfolio. In case our decisions are overridden, we're unable to make adjustments to suit each investor's take on the market.

Do I pay my investment cheques to IAI?

We do not accept any of your investment cheques. We ensure that your cheques are always drawn in the favour of the entity you are investing in and your investments are directly collected by them from you. We can facilitate the collection of cheques; however we would also like our clients to take note of the cut-off time for certain investments.

How do I withdraw from my accounts?

Please contact IAI Support for assistance with withdrawals or email us a day prior to which withdrawals are required. Kindly note that there are certain rules which apply for withdrawal like cut off times and restrictions on certain investments. Our phone and email contact information can be found on your Contact us page.

What are the funds IAI uses to balance my portfolio?

IAI utilizes the funds you already own whenever possible to minimize churn and tax impact. When necessary, we'll add low-fee funds to your portfolio to achieve specific diversification goals.

What kinds of reporting will I get as a client?

You can mail IAI at any time to get a comprehensive dashboard showing your portfolio's past performance under our management, a timeline of all actions we've ever taken to improve your portfolio, and account-by-account portfolio holdings. In addition, the dashboard will display the health of the overall portfolio in terms of performance, fees, tax efficiency, and diversification.

We generally respond to you within 48 hours with the report because in case of funds, the values of previous closing day are disclosed on the next working day. This is in addition to the monthly/ fortnightly reporting we provide.

Do you recommend rupee cost averaging?

In general, for clients with long time horizons, we do not recommend dollar cost averaging for large amounts of idle cash. However, it can be deemed for clients with a steady income and predictable surplus. We do not advise it blindly for any client whatsoever.

However, if you would like to rupee cost average, we encourage you to carry out regular, contributions from your bank accounts. We follow the concept of manual rupee cost averaging rather than automated one where the human factor of decision making is present every time an investment is made. However, in an automated format, no human intervention is there.

Where do I access account statements and tax documents?

You will be mailed these statements directly by the asset management companies like HDFC, ICICI, Reliance and Birla to your registered email id, which you can also use to verify our reports. Else, we have an option of having a mutually accessible email id where we receive the statements. There is an additional option of receiving physical statements too at your home/ residence address.

Taxes

How does IAI manage my assets in a tax-conscious way?

IAI follows a stringent capital gains and tax policy in managing your taxable investments. When you enrol with us, you will see an analysis of the tax impact of before your first portfolio rebalancing.

We hold each position that has unrealized short-term gain in excess of a benchmark amount (variance dependent on your portfolio size). We also hold each position with unrealized long-term gain in excess of another benchmark amount. Capital gains aside, we only consider selling an existing position when doing so provides significant improvement to your portfolio-wide diversification, fee efficiency, or tax efficient asset placement.

Fees

How much does IAI cost?

We charge a flat annual management fee of 0.5% of assets directly managed. However, this varies with the level of service provided and in certain cases, is zero.

Our 0.5% management fee is billed as quarterly instalments of 0.125% of assets directly managed. The billing cycle begins in the month following your initial rebalance, and we deduct the fee from non-tax sheltered accounts whenever possible.

Will I incur trading commissions or other fees, especially during rebalancing?

You may incur some trading commissions during your portfolio's initial rebalance, as we divest some of your existing holdings to bring your portfolio into balance. Trading commissions are usually very low for every subsequent rebalance, as we use lowest commission products almost exclusively.

Will my current brokerage charge me account closing and/or transfer out fees?

It depends. If your accounts are already held at a certain preferred partner whose expenses are the lowest, these fees will not apply. We shall inform you of any charges that might be incurred prior to effecting a change.

Will I be charged account opening or account maintenance fees?

No, you will not. All our service providers have waived off these charges and do not charge account opening fees or account maintenance fees on institutional accounts, the kind used by IAI.

Do-it-yourself

Can I do it myself?

Well, you definitely can and I am sure most of us do the same. But given the plethora of information and the numerous tip providers, whom do you trust and which advice do you follow? There are numerous incidents of some investors striking gold on self trading on the basis of tips. However, there are more incidents of nightmares where entire capital and worse, one entire life savings are eroded due to false tipsters.

 So, beware, remember, it is your hard earned money and irrespective of whether, you manage it yourself or let us manage it for you, follow a basic tenet of investing, never be greedy. Capital preservation, above all else, should be in your minds at all times.

Try IAI

Our portfolio management services should cost a fraction of what a traditional investment advisor charges. Apart from this, if we make any commissions/ brokerage from service providers, we provide you full disclosure of the same to you.

Try IAI Now

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