Faq

Mintwise (BI) is a customer-friendly online investment platform initiated by Mintwises Corporate Advisory Services Ltd. It offers quick and easy services through a web portal and mobile application to invest in various financial instruments. Currently Mintwise offers services related to Mutual Funds and Fixed Deposits, with plans to extend to other financial products soon.

Mintwises Corporate Advisory Services Ltd. is the promoter of Mintwise.

Mintwises Corporate Advisory Services Ltd. started in 2000 as a mutual fund distributor and has since expanded across all aspects of wealth management. It currently has presence across 63 branches in 17 states.

The group provides integrated wealth management solutions through Mutual Funds, Equities, Commodity & Derivatives, Bonds, Insurance, and Realty via various group companies. Mintwises is the winner of the CNBC TV18 Financial Advisor Award for five consecutive years.

BI provides a wide range of investment tools including:

• Goal-based investment planning
• WRAP portfolio
• Trigger-based investment
• Multiple transaction execution at one go
• Instant redemption for select schemes (InstaFunds)

Currently BI facilitates online investment in Mutual Funds and Fixed Deposits, with more products planned.

Currently BI offers three payment modes:

1. Net Banking
2. Registered Bank Mandate (NACH)
3. RTGS / NEFT

BI ensures the highest level of security using software named “Symantec.” It maintains utmost confidentiality and security of your personal information and documents. No personal data is shared with any third-party vendor.

BI allows you to select a maximum of 10 schemes at one go for both Lumpsum and SIP.

Through BI you can invest in schemes from 26 Mutual Fund houses:

• Axis Mutual Fund
• Baroda Pioneer Mutual Fund
• Birla Sun Life Mutual Fund
• BNP Paribas Mutual Fund
• BOI AXA Investment Managers
• Canara Robeco Mutual Fund
• DSP BlackRock Mutual Fund
• Franklin Templeton Mutual Fund
• HDFC Mutual Fund
• ICICI Prudential Mutual Fund
• IDBI Mutual Fund
• IDFC Mutual Fund
• Kotak Mahindra Mutual Fund
• L&T Mutual Fund
• LIC Nomura Mutual Fund
• Mahindra Mutual Fund
• Mirae Asset Global Investments
• Motilal Oswal Asset Management Services
• DHFL Pramerica Mutual Fund
• Principal PNB Asset Management Company
• Reliance Mutual Fund
• Religare Invesco Mutual Fund
• SBI Mutual Fund
• Sundaram Mutual Fund
• Tata Mutual Fund
• UTI Mutual Fund

Yes. After the Advisory Services section is launched, BI will be glad to advise you on investing based on your risk profile. A fee may be charged for such advisory services.

You must be a KYC-verified investor to open an account in a fully paperless and hassle-free manner. After opening your account, you can invest in 3 simple steps:

1. Choose the scheme of your choice for Lumpsum or SIP
2. Enter the amount you wish to invest
3. Make payment through Net Banking, NEFT/RTGS, or registered Bank Mandate

Account opening is a one-time process. After that, you can invest in any fund as often as you wish.

Yes, you can visit any Mintwises branch for assistance. Branch details are available in the ‘Contact Us’ section on mintwise.in. You can also call the toll-free number 1800 419 5051.

A SIP (Systematic Investment Plan) is an investment plan where a fixed amount is invested on a specified date at regular intervals. Units are purchased at the NAV prevailing on the date of investment.

Advantages of SIP:

• Rupee cost averaging
• Power of compounding
• Disciplined investing
• Lighter on the wallet
• Convenience

Transaction Charges: Currently BI does not charge any fees for execution services. Transaction charges may be introduced in the future.

Advisory Service: The advisory department is currently under development. Once launched, clients wishing to avail this service can email info@mintwise.in for fee details.

SIP payments can be made only through a NACH mandate. You need to send a duly signed NACH mandate to BI for registration. Once registered, the amount is directly debited from your bank account on the business day prior to your SIP date.

If the day prior to your SIP date is a holiday/non-business day, the debit will happen on the immediate next business day. NAV allotment will also follow on the next business day after the SIP debit date.

Only SIPs initiated on Mintwise can be stopped, paused, or renewed through Mintwise. SIPs that were registered offline and then shifted to BI must be stopped by submitting a physical request to the respective AMC/RTA.

SIPs registered through Mintwise can be stopped on an immediate basis. However, any SIP installments falling within 7 days from the date of the stop request will still be processed.

It generally takes approximately 15 days. If your folios are not converted within 15 days, contact BI on toll-free number 1800 419 5051 or write to info@mintwise.in.

Submit a folio conversion request from your Mintwise login: My Account > Manage Account > Change Offline to Online Folio.

Note: Offline to online conversion is not possible where there is a mismatch in holding pattern or tax status, or where the mode of operation is ‘Joint’. Existing SIP/STP/SWP changes must still be made via offline signed instruction.

Your purchase may be rejected if:

• The online payment was unsuccessful
• The transaction was initiated but not paid for more than 30 days

In such rare cases, your money will be refunded within 3 working days. Kindly contact BI if the amount is not refunded within that time.

Change Password: Login to your BI account, go to My Account and click Change Password.

Recover Password: Click “Recover it now” on the login page at mintwise.in/signin. Your account will be locked after 3 consecutive wrong password attempts and can be unlocked via the same option.

You need a registered KYC, a bank account proof, and an email address (used as your login ID). Opening an account is free, quick, and simple:

1. Provide basic details: Name, Mobile No., Email, Date of Birth, PAN, etc.
2. BI fetches your KYC details from KRA.
3. Once KYC is verified, upload a cancelled cheque copy of your bank account.
4. BI verifies your documents and activates your account within 2 business days.

After completing the online account opening process, BI’s team will verify your KYC documents and bank proof. You will receive an account activation email on your registered email ID after verification. Account activation generally takes 2–4 working days.

1. Go to My Account > Add New Client.
2. Enter the investor’s details (name, PAN, date of birth, etc.) and verify their mobile number via OTP.
3. BI’s team will verify the details and send a confirmation email once the account is activated.

You can use Net Banking or a NACH mandate to get purchase funds debited from your bank account.

You can invest through a NACH mandate. Submit your NACH mandate to BI and it will be sent to your bank for registration. Once your mandate is activated, you can start investing.

With Net Banking, your bank account is debited immediately. With a NACH mandate, your account is debited within the next 1–2 days.

Redemption proceeds are credited to the bank account registered with BI.

As per regulatory guidelines, the typical TAT is:

• Liquid/Debt schemes: T+1 business day
• Equity schemes: T+3 business days

Yes, it is available for all mutual funds listed for investment with BI.

OTM (One Time Mandate) is a one-time registration that allows an investor to instruct their bank to debit a certain amount at a specified interval/frequency. This eliminates dependency on any particular payment mode and enables seamless SIP and lumpsum transactions.

After account opening, BI sends a NACH Mandate form to your registered address. You must sign and return it to BI for registration with your bank.

Approximately 15 working days for your OTM to be registered with your bank.

The amount is debited by BI’s payment gateway, “Tech Process.”

BI does not levy any charges for such rejections. However, your bank may charge a fee — please contact your bank for details.

NRIs can invest from NRE and NRO bank accounts only — one of each.

NRIs can invest in all mutual fund schemes from all AMCs. However, most AMCs do not allow US/Canada resident NRIs to invest online due to regulatory restrictions. Such investors can currently invest online in L&T Mutual Fund and Sundaram Mutual Fund. Updates will be reflected on the BI platform.

Yes. An NRI can invest jointly after adding co-holders to their account. On Mintwise, the mode of holding will always remain “Anyone or Survivor.”

A minor’s account can only be opened through their guardian. The guardian must already hold a Mintwise account. You will need to upload proof of relationship between the minor and guardian. The minor’s bank account proof is mandatory and the guardian in the minor’s bank account must match the guardian registered with Mintwise.

Yes. However, redemption proceeds will be credited only to the minor’s bank account.

No. This is not permitted under mutual fund regulatory guidelines.

Yes. You can add a HUF account to your family account, or open one separately. The Karta must already be registered with Mintwise to add a HUF to a family account.

No. HUF registration is not paperless. After online registration, BI will send a welcome kit with an account opening form, FATCA form, and NACH mandate. You must sign and stamp the FATCA form and NACH mandate and return them to BI for verification and activation.

No. A HUF can invest in mutual funds as a single holder only.

InstaFunds is a facility in Mintwise that allows you to receive redemption proceeds instantly in your bank account. It is currently available for select liquid schemes of select AMCs.

If your bank is IMPS-enabled and your folio contains an IFSC code, you will receive the redemption amount within a maximum of 30 minutes.

No. InstaFunds is available only to resident individuals.

No. You will need to redeem through the normal ‘Redemption’ tab in Mintwise.

You can redeem up to 90% of the current value of your investment, subject to a maximum limit of ₹50,000 per day (including multiple transactions).

Currently, Reliance Liquid Fund – Treasury Plan and DSP BlackRock Liquidity Fund are available for redemption via InstaFunds.

You can call the toll-free number 1800 419 5051 or write to info@mintwise.in and BI will assist you.

Coupon payments are periodic interest payments (annual or semi-annual) made by a bond issuer to the bondholder, calculated on the face value of the bond. Payments continue until maturity, at which point the principal amount is also returned. Issuers include governments, banks, and corporates.

Credit risk is the risk that a borrower (bond issuer or counterparty) will default on their obligations — i.e., fail to make timely interest or principal payments. Higher credit risk typically demands a higher yield to compensate investors.

AUM is the cumulative market value of all underlying securities in a mutual fund scheme. It reflects the size and performance of the fund. AUM fluctuates with market movements and is used to calculate the expense ratio — the higher the AUM, the more revenue generated by the AMC.

A benchmark is the standard against which a mutual fund’s performance is evaluated. It is selected at the time of fund launch based on the investment objective and comprises stocks, money market instruments, bonds, or other securities. A fund is expected to outperform its benchmark over time.

Under the Dividend Reinvestment option, declared dividends are reinvested back into the scheme by purchasing additional fund units, rather than being paid out to the investor.

Under the Dividend Payout option, dividends declared from the scheme’s portfolio are paid out to the investor. Regular dividend payment is not guaranteed. The NAV for the dividend scheme is declared on the ex-dividend date (the next business day after the dividend is declared).

Equity Mutual Funds:

• Long-term capital gains (holding ≥ 1 year): 10% + 4% cess (gains above ₹1 lakh per year)
• Short-term capital gains (held < 1 year): 15% + 4% cess
• Dividends: tax-free for investors; AMC pays DDT at 11.648%

Debt Mutual Funds:

• Short-term capital gains (held < 3 years): 30% + 4% cess
• Long-term capital gains (holding ≥ 3 years): 20% with indexation
• Dividends: tax-free for investors; AMC pays DDT at 29.120%

Section 80C allows individuals and HUFs to reduce their taxable income by up to ₹1.5 lakhs per year by investing in eligible instruments:

• Fixed income products: EPF, PPF, FD, SCSS, NHB, POTD, SSY
• Market-linked products: Life insurance premium, ELSS, Pension plans, ULIP
• Spending activities: Home loans, stamp duty, tuition fees (up to 2 children)

Sub-sections include 80CCC, 80CCD(1), 80CCD(1b), and 80CCD(2). Companies, partnership firms, and LLPs do not benefit from these provisions.

ELSS (Equity Linked Savings Schemes) are mutual funds investing at least 80% in equity instruments. They offer a tax exemption of up to ₹1,50,000 under Section 80C. Key features:

• Lock-in period: 3 years
• Returns taxed as LTCG at 10% (if income exceeds ₹1 lakh annually)
• Minimum investment: ₹500
• Available as lumpsum or SIP

A ULIP (Unit Linked Insurance Plan) combines investment (equity, debt, bonds) with insurance coverage. Key features:

• Lock-in period: 5 years; ideally held for 15 years
• Charges include premium allocation, fund management, mortality, policy administration, switching, and surrender charges
• Tax deduction under Section 80C (up to ₹1.5 lakhs); maturity returns exempt under Section 10(10D)

Types: Single Premium, Regular Premium, Equity Fund-Based, and Debt Fund-Based ULIPs.

Hedge Funds pool money from high-net-worth or institutional investors and invest in varied securities including derivatives, publicly traded securities, and foreign exchange. They are less regulated, require large minimum investments, and have a 1-year lock-in period.

Key differences from Mutual Funds:

• Hedge funds target HNIs/accredited investors; mutual funds are open to retail investors
• Hedge funds are largely unregulated; mutual funds must be registered and regulated by SEBI
• Hedge fund managers earn performance-based fees; mutual fund managers charge a percentage of daily NAV

Modified duration measures the sensitivity of a bond’s price to changes in interest rates. It estimates how much a bond’s price will change for a given change in yield. A higher modified duration means higher interest rate sensitivity.

Exit load is a fee charged by an AMC when an investor exits or redeems fund units before a specified period. Its purpose is to discourage short-term trading and protect long-term investors.

Exit Load = Exit Load % × Number of Units × NAV

P-Notes are offshore derivative instruments used by foreign investors, hedge funds, or HNIs to invest in Indian securities without registering with SEBI. They are issued by SEBI-registered brokers and FIIs, who invest on behalf of foreign investors. P-Notes maintain investor anonymity and simplify the investment process.

• Open-Ended Funds: No fixed maturity. Units can be bought or sold at any time at NAV prices.
• Close-Ended Funds: Fixed maturity period. Investment is only possible during the NFO (New Fund Offer) period. After the offer closes, no new investments are allowed.
• Interval Funds: Allow transactions only at specified intervals.

Mutual fund schemes are classified into:

1. Equity Schemes
2. Debt Schemes
3. Hybrid Schemes
4. Solution-Oriented Schemes
5. Other Schemes

By Market Capitalization: Large Cap, Mid Cap, Small Cap, Large & Midcap, Large/Mid/Small Cap Index

By Diversification: Multi Cap, Flexi Cap, Focused, Equity FoF, Value-Oriented, Contra

By Sector & Theme: Sectoral (Banking, Technology, Infrastructure, Pharma), Thematic (Dividend Yield, Consumption, Energy, PSU, MNC, ESG), International Index, and others

Income funds focus on current income (monthly/quarterly) rather than capital gains. They invest in corporate bonds, debentures, or government securities for longer durations. Income funds have a Macaulay duration of 4+ years:

• Medium to Long Duration Fund: Macaulay duration 4–7 years
• Long Duration Fund: Macaulay duration > 7 years

A bluechip fund is an equity investment fund that invests in stable, high-profit, large-market-cap companies (high PE ratio). It is also called a growth fund and is suited for long-term investment.

A fund factsheet is a summary of a mutual fund scheme covering:

• Investment objective of the scheme
• NAV of different plans
• Fund manager fees
• Risk assessment
• Returns and benchmark
• Available options (growth/dividend)
• Minimum investment amount and exit loads
• Plan type (direct or regular)

A financial derivative is an instrument whose value is derived from an underlying asset (stocks, bonds, commodities). They are used for hedging against risk or speculation.

Types:

• Options: Right (no obligation) to buy/sell at a predetermined price
• Forwards: Obligation to buy/sell at a future price; traded off-exchange
• Futures: Obligation to buy/sell at a future price; traded on exchange
• Swaps: Exchange of cash flows for a fixed amount

Compares a company’s total debt to its shareholders’ equity, revealing how much it relies on debt financing.

Debt-to-Equity Ratio = Total Debt / Shareholders’ Equity

A high ratio signals higher financial risk; a low ratio suggests greater stability and flexibility. It is used for financial risk assessment, borrowing capacity evaluation, and industry comparisons.

Measures the proportion of a company’s assets financed by debt.

Debt Ratio = Total Debt / Total Assets

Helps assess financial risk, creditworthiness, industry comparison, and long-term financial health. The ideal ratio varies by industry.

Measures a company’s ability to cover interest expenses with operating earnings.

Interest Coverage Ratio = EBIT / Interest Expenses

A higher ratio indicates a stronger ability to meet interest obligations with lower default risk.

Measures whether a company generates sufficient cash flow to cover its total debt obligations (principal + interest).

DSCR = Operating Income / Total Debt Service

A DSCR above 1 indicates the company generates more than enough income to service its debt.

Measures a company’s ability to generate operating cash flow relative to its total debt.

Cash Flow to Debt Ratio = Operating Cash Flow / Total Debt

A higher ratio indicates stronger debt repayment ability, financial stability, and creditworthiness.

Profitability ratios assess a company’s ability to generate profits. Common types:

• Gross Profit Margin = (Revenue − COGS) / Revenue
• Operating Profit Margin = (Operating Income / Revenue) × 100
• Net Profit Margin = (Net Income / Revenue) × 100
• Return on Assets (ROA)
• Return on Equity (ROE) = (Net Income / Average Shareholders’ Equity) × 100
• Earnings Per Share (EPS)
• Return on Investment (ROI)
• Operating Cash Flow Margin

Valuation ratios assess whether a stock is overvalued, undervalued, or fairly priced. Common types:

• P/E Ratio: Price per Share / Earnings per Share
• P/S Ratio: Market Capitalization / Annual Revenue — a low ratio may indicate undervaluation
• P/B Ratio: Market Price per Share / Book Value per Share — used for value and asset-based analysis
• EV/EBITDA
• Dividend Yield

An AMC collects pooled funds from individual investors and invests them in diversified marketable securities (stocks, bonds, real estate, etc.) with the objective of optimal returns, charging a fee for this service. AMCs are governed by SEBI and AMFI and operate under Ministry of Finance supervision.

1. Market Research and Analysis: Building a portfolio using economic and political factor analysis
2. Asset Allocation: Distributing funds across asset classes per investment objectives
3. Portfolio Creation: Deciding on buying, selling, or holding assets
4. Performance Review: Regular updates to investors on NAV, returns, risks, and portfolio changes

• AMC Reputation: Analyze annual reports, market reviews, and compliance reports to SEBI, AMFI, and RBI
• Fund Manager Credibility: Assess the fund manager’s past performance
• Price and Value: Evaluate fund price, value created, and returns offered
• Fees and Commission: Determine the charging pattern; fixed fees are often preferred for predictability

• The AMC Chairman cannot be a Trustee of the mutual fund
• No key personnel should be convicted of any fraudulent act
• The AMC itself should not be a trustee of the mutual fund
• AMC’s net worth must not be less than ₹10 crores
• Investment intentions must be disclosed in offer documents before investing
• Quarterly compliance reports must be submitted to trustees

NPS is a government-sponsored contributory pension scheme regulated by PFRDA (Pension Fund Regulatory and Development Authority). It was introduced for central government employees on 1 January 2004 and extended to all citizens from 1 May 2009.

Objectives:

• Provide adequate, sustainable retirement income
• Offer a flexible and portable retirement savings scheme
• Promote a national savings culture
• Ensure secure and transparent retirement savings

Any Indian citizen (resident or NRI) between the ages of 18 and 70 years. NRIs must comply with RBI and FEMA guidelines. OCI, PIO, and HUF are not eligible. A person can hold only one NPS account (but may also hold an Atal Pension Yojana account separately).

• Tier-1: Mandatory retirement account with restricted withdrawals
• Tier-2: Voluntary savings account linked to the subscriber’s PRAN; funds can be withdrawn at any time

Active Choice: Subscriber designs their own portfolio across 4 asset classes — Equity (E), Corporate Bond (C), Government Bond (G), and Alternate Investment Fund (AIF).

Auto Choice: Funds are allocated automatically based on the subscriber’s age and risk appetite:

• Aggressive (LC-75): Max equity exposure of 75% up to age 35
• Moderate (LC-50): Max equity exposure of 50% up to age 35
• Conservative (LC-25): Max equity exposure of 25% up to age 35

1. Premature exit / Voluntary retirement (before age 60)
2. Superannuation (retirement at age 60)
3. Exit due to unexpected death

Subscribers must annuitize a minimum of 40% of their corpus. Up to 60% can be withdrawn as a lumpsum (tax-free). If the total corpus is ₹5 lakhs or less at exit, the entire corpus can be withdrawn. If the subscriber does not process an exit after age 60, the NPS account remains active.

• Lumpsum withdrawal of up to 60% of total pension wealth corpus is tax-exempt
• Amount used to purchase annuity is tax-exempt
• Periodic annuity (pension) is taxed as per the subscriber’s tax slab
• No tax benefits on Tier-2 withdrawals

An annuity is an agreement between a subscriber and an annuity service provider (ASP) where periodic payouts are offered from the corpus built up over time, typically at retirement. It functions as an insurance vehicle rather than a pure investment option.

Types of Annuities:

• Periodic: Regular payouts at a predetermined frequency
• Lump-sum: One-time payout of a set percentage of corpus
• Deferred: A time lag between corpus accumulation and payouts (e.g., insurance)
• Immediate: Payouts begin right after a lumpsum premium is paid
• Fixed: Fixed payout amount; low return potential
• Variable: Corpus invested in market instruments; payouts depend on market performance
• Indexed: Guaranteed minimum payouts with returns tied to a market index

• Accumulation Phase: The period during which the subscriber makes contributions and builds the corpus
• Vesting Phase: The period during which the subscriber begins receiving annuity benefits (pension)

Ordinary Annuity:

Present Value = P × (1 − (1+r)^−n) / r

Future Value = P × ((1+r)^n − 1) / r

Annuity Due:

Present Value = Ordinary PV × (1+r)

Future Value = Ordinary FV × (1+r)

Where P = Periodic Payment, n = Number of Periods, r = Effective interest rate

PFRDA (Pension Fund Regulatory and Development Authority) was established on 23 August 2003 and its Act was notified on 1 February 2014. It regulates NPS and promotes pension sector growth in India.

Functions:

• Promote organized pension systems (obligatory and voluntary schemes)
• Manage intermediaries such as Pension Fund Managers (PFM) and CRA
• Govern both Tier-1 and Tier-2 NPS accounts
• Spread awareness about the importance of pension systems

PFRDA Intermediaries: NPS Trust, Central Record Keeping Agency (CRA), Pension Funds, Trustee Bank, Custodian, Point of Presence (POP), Aggregators, and Retirement Advisers.