• Life goals such as education for children, buying a car or a house, worry-free retirement or even vacations need planning and direction to turn into achievable action plans. Financial planning helps provide a structured path to achieve these goals and thus help you achieve peace of mind.first-graph-296x300
  • Planning is needed precisely to counter the unpredictability of the market. Keeping in mind the goals and exposure to risks, one can plan well enough to reduce volatility of returns on one’s investment portfolio as a whole.
  • One should also understand that financial planning is a not a one-time activity. A successful plan requires serious commitment and periodic review. One should be prepared to make minor or major revisions to the plan that will accordingly impact their current financial situation, goals and investment time frame based on a performance review.
  • As one undertakes the financial planning process, it provides various benefits such as: Reduction of unnecessary expenditure and create optimum balance between income and expense. While certain investment products help reduce tax liability others can maximize returns on investments and create wealth to ensure financial security, be it for oneself during the retirement or for the dependents.

“Savings” are usually the portion of your income that is accessible to at any time. They are usually put in the safest place or product and when left to accumulate lay idle without generating additional income. In fact as time progresses, the value of such money could fall due to multiple factors such as inflation and other macroeconomic situations. “Investing”, on the other hand, entails allocating your money into financial products that generate risk-adjusted return. It is generally advisable to set aside a certain portion of income that will not be needed for many years. Investing results in higher exposure to risk but it also yields greater returns when left alone long enough.

  • Everyday counts and therefore it is advisable to “Start Now”. Be honest with yourself and set sensible and measurable goals.
  • With a disciplined financial planning, your investment today can become 2 times in 6 years, 5 times in 15 years and eventually more than 17 times in 30 years, considering a CAGR of 11.25% (20 years annualized return on Indian stock market)second-graph
  • Individuals who feel overwhelmed can of course always consult professional financial planners, who takes one through the whole process.third-graph

Indian stock markets have generated 11.25% annualized return for its investors in the last 20 years. In contrast an investor would have earned only a meager 4-5% return post tax on fixed deposits. The difference in performance captures the essence of investment philosophies that lie on either sides of the risk-return continuum. While a fixed deposit can be considered as one of the safest ways to deploy one’s hard earned wealth, it surely is not the most productive one. There also exist Fixed Income products that provide same level of safety as a fixed deposit as well as a higher return such as State Govt and PSU perpetual bonds offering up to 11-12% return.

You should consider investing in direct equities if you have the time to actively monitor and research stocks, you have a reasonable knowledge about the financial markets and you have the patience to bear market volatility. Mutual funds are specifically designed as well diversified investment portfolios. Professional money managers ensure rigorous investment discipline to manage these funds. The fund managers are generally able to devote more time and resources to monitoring investments, than an individual could, and tend to react less to short term investor sentiment.

Types of Mutual funds


  • Equity funds aim to provide capital appreciation by investing in shares of various companies. Funds can be passive (Index funds) or actively managed but are generally actively managed. The different types of Equity mutual funds are-
  • Diversified equity

    Is a category of funds that invest in a diverse mix of securities that cut across sectors.

  • Sector Funds

    However invest in only specific sectors. For example, a banking sector fund will invest in only shares of banking companies.

  • Thematic Funds

    Invest in line with an investment theme. For example, an infrastructure thematic fund might invest in shares of companies that are into infrastructure construction, infrastructure toll-collection, cement, steel, telecom, power etc.


  • Debt funds aim to provide steady income by investing in fixed income securities like bonds, Government Securities (Gilt), corporate debentures and money market instruments. Types of Debt funds are-
  • Gilt Funds

    Invest in only treasury bills and government securities, which do not have a credit risk.

  • Diversified Debt Funds

    Invest in a mix of government and non-government debt securities. In selecting corporate bond funds, one needs to be cautious in the selection of funds particularly on the quality and the rating of the borrowers.

  • Fixed Maturity Plans

    Are a kind of debt fund where the investment portfolio is closely aligned to the maturity of the scheme.

  • Liquid schemes or money market schemes

    Are a variant of debt schemes that invest only in ultra short duration debt securities.


  • Balanced Mutual Fund

    Balance fund aim to provide capital appreciation with steady income by investing in a portfolio of stocks and bonds. It can be either a fixed percentage or can vary as per market cycles.

One time charges-

  • Entry Load : The charges that are levied when the units are being purchased. The mutual fund would sell the unit price higher than the NAV. At present Mutual Funds cannot charge entry load.
  • Exit Load : The mutual fund would buy back the units at rate lower than the NAV. There are no fixed exit loads which are charged. It varies based on the scheme. The current practice is the funds could charge any way from 0.50% to 3% depending on the holding period, generally one year. If the investors continue to hold the investment beyond the specified period, no exit load is charged.
  • Transaction Charges : These charges are one time charges applicable when the money is invested. This is applicable for the investments of over Rs. 10,000/-. This is a nominal charge of Rs. 100-150 only.

Recurring Charges (Ongoing expenses/Fund Running Expenses) –

  • The expenses are charged on Daily Net Assets of the specific mutual fund.
  • The guideline rates are given by the regulator and Mutual Funds cannot charge more than the stipulated structure.
  • The expenses are deducted every day from the Net Assets of the fund and NAV declared is after adjusting the expenses.
  • This is generally up to 2.5%.
  • Before investing, an investor must identify his or her own goals for the money being invested. In addition, investors should also factor his or her own risk appetite, time horizon and liquidity needs in near future. Few things one must look while selecting a mutual after the risk profiling are:
    • Schemes’ Investment objective
    • Size of the fund
    • Fund Manager’s tenure & experience
    • Fees and charges
    • Scheme’s return comparison with benchmarks/peer group

    Past track record of the fund is important; however it is not as important as you may think, especially in the short term. As, with any investment, past performance alone does not guarantee future returns. Over the long term, the fund performance depends on factors mentioned above.

Mutual funds are essentially medium to long term investments. Hence, short-term abnormal profits will not be sustainable in the long run, and although there is never a guarantee of a minimum return in the medium to long run, mutual funds tend to outperform most other avenues of investments as Mutual Funds are run by professional managers.

  • A financial advisor, also known as a financial planner or a wealth manager, provides financial guidance and planning services to their clients.
  • Financial advisors assist their clients in choosing the financial products and services that best meet their current and future needs. A good financial advisor is neutral and methodical in their approach to suggest suitable investment products.
  • Following are the basic services that investors should expect from their financial advisors:
    • Assistance in developing realistic expectations by discussing the risks and rewards of each investment and thereby match your goals and objectives with appropriate investment products.
    • Continuously monitoring your portfolio and assist you in interpreting its performance.
    • Conduct regular reviews to ensure that the investment strategy continues to provide optimal results for you.
  • Financial advisors receive a trail fee from Mutual funds for as long as the client’s money is invested and it is generally a fixed fee which is paid on a monthly basis on the average assets under management. It is paid out of the AMCs (Annual Management Charges) that are deducted from the mutual fund pool account and is not separately deducted from the client’s investment amount.
  • There is also the option for investors to invest directly and compensate the advisor separately, but the process thereafter to monitor investments is cumbersome as data is only accessible to the investor.

With Divitas, you can invest your money through both the online and offline routes

Invest Online

  • You may choose to invest online by taking a brief risk questionnaire, which will help us understand your risk profile and investment objective. Subsequently, you can transact using our online transaction platform for mutual funds in association with NSE (National Stock Exchange), which is completely paperless and thus, hassle free.
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Invest Offline

  • We will be happy to meet and answer any queries that you may have about investing opportunities or process in great detail at your home or office as convenient to you. We at Divitas believe in building a one on one relationship and always keen to engage with our clients in every decision which impacts their financial health.
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  • An Applicant must be KYC compliant while investing with any SEBI registered Mutual Fund. KYC is an acronym for “Know Your Client”, a term commonly used for Client Identification Process. SEBI has prescribed certain requirements relating to KYC norms for Financial Institutions and Financial Intermediaries including Mutual Funds to ‘know’ their clients. This would be in the form of verification of identity and address, financial status, occupation and other such personal information. An investor can click here to check the KYC status across all KYC Registration Agencies. You can click on the links below to download the respective KYC Forms
    • Individual KYC Application Form
    • Non-individual KYC Application Form
    • Individual KYC Change Form
    • Non-individual KYC Change Form

Absolutely. The data provided is only used to assess your risk profile and to recommend investments. Our online investment platform is in association with NSE( National Stock Exchange) and it is equipped with the best online safety and protection tools that ensure that all your investment transactions always take place in a reliable and secure manner.

Investing is only the first step. Once invested you need to keep track of your performance. While keeping an eye on your portfolio performance do not get influenced or panic by its short term performance. Technology coupled with our comprehensive and easy to interpret report will help you stay on top of it. We provide you with 24×7 online accesses to your portfolio.

With Divitas, you can invest your money through both the online and offline routes

Wealth creation is a long term process and it requires a systematic approach along with regular portfolio review. We at Divitas capital believe in developing long term relationships based on mutual trust. Whether it is retirement or any other financial goal, it requires dynamic asset allocation as with each new set of circumstances come new objectives. These transitions do alter the risk profiles and the portfolio needs to be aligned accordingly.

We review and send out our clients’ investment reports each month with a short summary along with our recommendations, if any. We study all macroeconomic dynamics along with new regulations and their impact on our clients’ individual portfolios. We act and communicate proactively in case our view on a particular asset class changes.

Sound financial advice is based on more than just the knowledge of markets & financial products. At Divitas, we take time to learn about your financial planning needs, risk appetite and liquidity requirements. After understanding your goals we begin to develop a meaningful strategy for your investments. We have access to a broad range of experts because of our size which helps in ensuring that you get the professional advice you require to achieve your investment objective. Lastly, we are neutral in our advice and not incentivized to suggest a single fund house.

The soft copy of the KYC form is available on our website. You may also approach your relationship manager for a form or else you can download the same from this link. The same duly completed along with a recent photograph, the necessary attested documents such as PAN card, passport, identity and address proof can be submitted or mailed to our representative who can complete the KYC formalities for you.

Yes. In addition to the certified true copy of the passport, certified true copy of the overseas address and permanent address will also be required. If any of the documents (including attestations/ certifications) towards proof of identity or address is in a foreign language, they have to be translated to English for submission. The documents can be attested, by the Consulate office or overseas branches of scheduled commercial banks registered in India.

The requirements applicable to an NRI will also apply to a PIO. However, additionally, he or she will need to submit a certified true copy of the PIO Card.

Now the foreign nationals and business entities, called Qualified Foreign Investors (QFIs), can invest in India without any hassles. QFIs can invest directly into Indian mutual funds and stocks of the listed companies. Earlier only FIIs, their sub-accounts and NRIs were allowed to directly invest in Indian markets. SEBI has prescribed the requirements and procedure for account opening by QFI along with manner of operations thereof. QFIs shall transact only on delivery based transactions and each transaction shall be cleared & settled on gross basis and they are not allowed to issue any offshore derivatives instruments/ participatory Notes.

The taxability of income of a person depends primarily upon his ‘residential status’ If a foreign citizen is a resident in India, all incomes received, accrued or arisen to him in India or abroad shall be subject to tax in India. If a foreign citizen is not a resident in India, only incomes that are received, accrued or arisen to him in India, shall be taxable.

Double Tax Avoidance Agreement or DTAA is an agreement between two countries to help avoid taxation of an income in both the countries. India has double taxation agreements, which override the Indian law, with virtually all its major trading partners. Meaning, expats are not liable to pay taxes in both countries of residence. Please consult a tax specialist to determine if ones home country and India have such an agreement in place, and to determine in which country one should file taxes in.

QFI will be distinct from FII and non-resident Indians (NRI). A QFI can, for instance, be a foreign individual investor in China or any other country, who can buy into stocks of any listed company in India. All a QFI needs is to fulfill a few requirements like the Know Your Customer (KYC) norms. While an FII is required to go through a more complicated route of approvals, SEBI registration and has to pay a registration fee as well.

Taxability of income in India depends upon residential status. Foreign nationals resident in India are liable to pay tax on the taxable income as in case of other resident assessees. Foreign nationals who are non-residents are liable to pay tax at special rates on income from dividends, interest and capital gains from units of mutual funds, bonds, shares, Global Depository Receipts, royalty or fees for technical services.

Yes. The permanent residency status will be granted for a period of 10 years initially with multiple entry facility. Foreign investors bringing in at least Rs 10 crore capital will be eligible for residency status, easier visa regime and employment for family members among other benefits under a new policy (scheme) approved by the Cabinet. Under the scheme, suitable provisions will be incorporated in the visa manual to provide for the grant of permanent residency status to foreign investors. Permanent residency status will be granted for a period of 10 years with multiple entries. This can be reviewed for another 10 years if the holder has not come to adverse notice. The scheme will be applicable only to foreign investors fulfilling the prescribed eligibility conditions, his/her spouse and dependents. In order to avail this scheme, the foreign investor will have to invest a minimum of Rs 10 crore to be brought within 18 months or Rs 25 crore to be brought within 36 months. Further, the foreign investment should result in generating employment to at least 20 resident Indians every financial year. The status will serve as a multiple entry visa without any stay stipulation and holders will be exempted from the registration requirements. These status holders will be allowed to purchase one residential property for dwelling purpose. The spouse/ dependents will be allowed to take up employment in the private sector (in relaxation to salary stipulations for Employment Visa) and undertake studies in India.

  • Non-resident foreigners and tourists can open bank accounts even if it is for only a short period of time. They are entitled to a non-resident ordinary rupee (NRO), current or savings account.
  • The Reserve Bank of India (RBI) made investments in India easier for foreigners by allowing them to open special rupee as well as foreign currency accounts with local banks. For this purpose, RBI clubbed foreign institutional investors (FII) and qualified foreign investors (QFI) under one category called “Registered Foreign Portfolio Investor” (RFPI). To invest money in the domestic market, an RFPI can transfer its money from the foreign currency account to the rupee account.
  • After investing through the rupee account, the investment proceeds can again be transferred to the foreign currency account for repatriation purpose.

At the time of Sale of any Asset, Tax is liable to be paid on the Gains earned on the sale of Asset. Such Gains can either be Short Term Capital Gains or Long Capital gains. The classification of short term and long term capital gains and their tax rates is different in case of shares and mutual funds.

Funds where equity holding is more than 65% of the total portfolio are classified as equity funds for taxation. All equity schemes, arbitrage funds, balanced funds (which have 65-75% equity and 25-35% debt) are classified as equity oriented funds from a taxation perspective. If you buy and hold an equity-oriented MF for more than 1 year, long term capital gain on such funds will be nil. However, if you sell the fund before one year you are liable to pay short-term capital gains tax which is 17.768% (including surcharge & cess).

Liquid funds, income funds, gilt funds, capital protection schemes are classified as debt-oriented schemes for taxation. Units of such non-equity mutual funds held for more than 36 months qualify as long-term capital gains. On such units, long-term capital gains (LTCG) are taxed at 20% with indexation, while short term capital gains on such funds are taxed as per the slab rate of the individual investor.

Investors can opt for either the dividend option or a growth option in a mutual fund scheme. If they opt for the growth option, they do not get any dividends. When they sell the fund they earn a capital gain. If they opt for the dividend option, they will receive intermittent dividends at regular intervals plus earn a capital appreciation, when they redeem. Dividend income is tax-free or exempted from tax in the hands of individual/HUF (Hindu Undivided Family) investors in all mutual fund schemes. Dividend Distribution Tax (DDT), which is applicable to non-equity schemes only, is paid by the mutual fund/asset management company.