FAQ

Mutual Funds

How does Cube pick which Mutual Funds to list?
Wealthfirst, Cube's mutual fund advisor has shortlisted a small set of funds from among the more than 8000 available based on the following attributes:

  • How well the fund has done in the last 1, 3 and 5 years
  • How much risk the fund manager has taken
  • How stable these returns have been,
  • How large the fund is
  • How long the Fund manager has been in charge

Cube has then grouped these by the risk level you choose to take on. There are also a couple of international funds in addition.

Does Cube hold my Mutual Funds?
No. The mutual funds are always held in your name with the fund house. Even if you stop using Cube, your funds remain unchanged. Cube makes it super-easy for you to choose proven performers, buy/sell and track your mutual fund investments.

Can I invest in funds other than the ones listed? Can I track my existing Mutual Fund portfolio inside Cube?
Not at the moment. Cube's goal is to take away the overhead of managing money and wealth from you.This is why we have done the hard work of picking funds that perform best in the isk level you choose, so that you don't need to!

Can I pick more than one risk category to invest in?
Yes! You can even invest in all categories at once as well. In your Mutual Fund preferences, set the percentages you want to allocate to each risk category (and the international funds). The next time you deposit money, Cube will automatically divide it that proportion between different funds.

Can I move money between different risk categories?
Not directly from within Cube. This isn't allowed by SEBI, the regulator for mutual funds. You can of course withdraw money (fully or partially) from any fund into your bank account, and deposit into a new one.

What if a fund does badly after I've invested in it?
Mutual Fund investments are of course subject to market risks, so the value will rise and fall on a day to day basis. Building wealth is a long term proposition, Cube strongly encourages you to give it time - a minimum of six months; ideally 2-3 years.

I just bought a fund through Cube and have changed my mind and want to sell immediately.
Cube places no restrictions on when you can buy and sell your funds - you have complete control. However, when you buy a fund it takes up to three business days for the fund house to actually allot mutual fund units to you. Until then, your money will show as 'under process' on the Cube Magic dashboard and won't be available for withdrawal. This is true of all mutual fund investments; not just specific to Cube.

I've sold my fund, either fully or partially, but I don't see the money in my bank account.
Just like with deposits, withdrawals (or 'redemptions') take between 2 and 3 business days to reach your bank account. These funds will also show as 'under process' on the Cube Magic dashboard. You'll receive an email/sms from your bank and the fund house when the money is credited into your bank account.

What do the mutual fund category names indicate?
The category names indicate the risk level of the mutual funds. Super Safe funds are liquid funds, which invest funds in very conservative instruments whose returns are broadly stable. Boring funds are debt funds, which have historically also provided stable returns. They are slightly more volatile than liquid funds and offer correspondingly slightly higher returns. Balanced Diet and Roller Coaster category funds are equity funds, the latter are both typically higher risk and offer higher returns than the former. Made in China and Americano offer exposure to the Chinese and US markets respectively and should be treated as high risk-high returns funds.

Gold

What is SafeGold?
SafeGold is an organised and transparent method of buying 24 carat gold in compliance with all applicable laws and regulations. SafeGold is neither a financial product nor a deposit but a method of purchasing gold as a personal investment.

Who is SafeGold?
SafeGold is a product of Digital Gold India Private Limited, which is in turn institutionally owned by InVent Capital with the World Gold Council as a minority investor (through World Gold Council (India) Private Limited).

What is the Purity of Gold offered by SafeGold?
Safegold offers 24 Karat Gold of 995 fineness (99.5% pure).

How does this differ from a gold ETF that I can buy on a stock exchange?
With Safegold, the gold exists in physical form in your name with a trustee (in this case IDBI) and secured in a vault with a storage provider (Brink's). What you see in Cube is the digital representation of this holding. This means you can order physical delivery of gold anytime and on as many occasions as you want, in multiples of 1 gram. When you buy, gold in grams up to 4 decimal places is credited to your Safegold account, which is what your gold portfolio in Cube shows.

If it's physical gold, why should I buy gold via Safegold instead of owning jewelry?
Buying and selling gold is vastly faster, simpler and more transparent with Safegold through the Cube app. If you're buying gold as an investment instead of wearing it as jewelry, there's no point to paying making charges as you would with a jeweler - instead, you'll pay a nominal minting charge _only_ when you ask for gold to be delivered to you.

What is the minimum & maximum amount for buying gold through Cube?
If you're a new customer, the initial investment in gold through Cube is INR 30,000. The minimum subsequent investment is INR 5,000.

How does Safegold keep my gold investment safe?
One, SafeGold has entered into a relationship with IDBI Trusteeship Services Limited to act as a Security Trustee for all our customers. The Security Trustee is entitled to act on your behalf and ensure that your interests are protected. The Security Trustee will have a charge on the gold associated with accumulations held by you.

Second, the secure storage provider (Brink's) has a comprehensive, global insurance policy that includes the insurance cover on your gold stored in their vaults. In addition, SafeGold has an additional insurance policy to cover gold in transit.

What happens if Safegold goes out of business?
The gold in your Safegold account is separate from the other assets of the SafeGold. The title of the gold clearly rests with you. The gold is held in trust by IDBI Trusteeship for and on your behalf. Any adverse event happening to Safegold will not affect the gold associated with the accumulations in your account.

At what price is gold sold/bought from customers?
The buy and sell prices you see for gold within Cube are derived by Safegold from the wholesale bullion market plus a commission to cover operating costs. The actual purchase price paid by you will always be transparently published so that you have a chance to compare with all other sources before entering into a transaction.

How do I sell my gold through Cube?
Tap 'Sell' on the bottom of your Gold portfolio under Settings -> Wealth -> Gold. You can choose to sell any amount starting with a minimum of Re. 1 to a maximum of the amount of gold that you own. You'll see the sell price on the scree. The sell quote may be temporarily unavailable in the unlikely event of a disruption in the bullion market.

Where can I find the invoice for the gold I buy and sell?
Safegold sends you an SMS on the mobile number registered with Cube, with a link to the PDF invoice after every buy or sell transaction.

What is the maximum period of time for which my gold can be stored with SafeGold?
You can store your gold with SafeGold for a period of 7 years from the date of purchase. The custody shall be without charge for the first 24 months, and thereafter, will continue to be stored by SafeGold for a nominal fee to cover storage costs. You will be intimated in advance of being charged the fee, and will have the option to sell or request delivery of your gold at all times.

What is the eligibility/criteria to purchase SafeGold through Cube?
Any Indian resident can invest in Gold through Cube.

Is there any lock-in period for this plan?
No, there is no lock-in period from the date of purchase.

Can I have a joint account for this plan?
No, you cannot have a joint account for SafeGold.

What happens to my gold investment in the event of my death?
In the event of your death, if specifically allowed by SafeGold subject to the required due diligence, the title to your Gold lying in the vault and your account shall transfer to your legal heir.

Equity Advisory

Do I transfer to Cube all the money that I plan to invest?
No. Purnartha, Cube's Advisory partner, issues recommendations that you act upon using your existing brokerage. There is no transfer of funds other than the actual fees you pay to Purnartha.

Why should I trust either Purnartha or Cube with such a large amount?
You should trust Purnartha's track record. They have over INR 2500 crore under advisory for over 2300 Indian HNIs globally. Over 9 years, their annualised returns have been over 51%. They are also wealth advisors for Cube's own senior management - we've literally put our money where our mouth is. Cube has partnered with Purnartha to bring their minimum assets under advisory per client down to INR 10 lakh, a small fraction of their usual minimum.

How does Cube keep my portfolio updated if I act on my recommendations from outside of it?
At the end of any day during which you make equity buys and sells, your brokerage sends you contract notes (also known as trade notes or similar). You forward those contract notes to wealth@bankoncube.com. Your portfolio will be updated within 24 hours.

How quickly should I act on the equity recommendations?
Purnartha, like Cube, builds wealth over the long term and picks only those equities that deliver consistent growth. In other words, the recommendations are infrequent, and are not time sensitive. You do not have to act upon them immediately. However, we do recommend you act as soon as you can, since in the short term the market can fluctuate.

What if I buy more or less stock than recommended?
Purnartha ignores excess stock that you purchase. In case you buy less than recommended, Purnartha calculates your performance fee based on what you actually buy. However it's in your interest to buy stock in the quantity Purnartha recommends, since you have already determined the amount under advisory when you signed up.

Do I pay the entire management fee up front for a 1 or 3 year SIP, or every month?
The management fee is paid up front. You pay it either via a cheque or an NEFT transfer. Message Cube for payee/bank account details.

How do I add to the amount of money that is already under advisory?
You fill out a new form for the excess amount, which also means new management fees. Tap the 'Add Money' button under your portfolio in Cube and follow the wizard. However, if you have cash on a regular basis to invest, consider a SIP plan.

Peer To Peer Lending

How does P2P lending work?
P2P lending as an asset class in Cube is in partnership with Monexo (www.monexo.co), an RBI-licensed P2P NBFC. Monexo is a marketplace that bring together investors such as yourself, and pre-vetted borrowers who wish to apply for a loan.
Based on your preferences, the money that you invest in Monexo is disbursed to borrowers. In return you receive monthly loan repayments over the tenure of the loan. The returns ie the interest rate on the loan depends on how risky Monexo evaluates the borrower to be (higher the returns, higher the risk).
P2P is an attractive asset class with returns between 13-35% depending on the borrower risk you choose. Making a loan also means you receive EMI repayments from your borrowers every month for the entire duration of the loan! Of course it also means that your investment is locked-in for the period of the loan, which is typically between 12-36 months.

Are P2P lending and Monexo regulated?
Yes, Peer to Peer lending in India is backed by the RBI’s robust regulatory guidelines from October 2017. These guidelines recognise P2P lending platforms as a new class of NBFCs ("NBFC - P2P") and define the scope of permitted activities, minimum capital requirements and other key operational parameters. Monexo received its Certificate of Registration (number N-07.00842) from the RBI on 29th June 2018.

What returns can I expect?
Returns are typically in the range of 13% to 25%. However, these depend entirely on the risk profile of the borrower. Borrowers with higher interest rates are also higher.

What are Monexo’s fees?
Monexo earns only when you earn

  • 2.5% + GST of the monthly repayment collected (For lenders whose initial fund transfer to escrow a/c is INR 1 lakh and above)
  • 0.10% of the amount withdrawn from the Escrow account.
There are no additional Cube fees to invest in P2P lending.

OK. How do I sign up to P2P Lending on Cube?
Get in touch with Cube on your personal WhatsApp group to request access to P2P Lending. Once activated, you’ll find it as a Wealth option along with Mutual Funds, Equities and others.
Signing up has two parts: one within Cube and the other on Monexo’s website. On Cube, you will set your risk preferences and make your first investment. Then on Monexo’s website, you will complete your profile. Be sure to use the same email address and mobile number that you have registered for Cube!
You will see your P2P portfolio in Cube two working days from completing signup on monexo.co.

I am already an investor/lender with Monexo. Do I need to sign up again?
No! You’ll see your entire Monexo portfolio within Cube. Here is what you need to do:
Get in touch with Cube on your personal WhatsApp group to request access to P2P Lending. Once activated, you’ll find it as a Wealth option along with Mutual Funds, Equities and others.
Then, follow the wizard to set your auto-invest risk references and make your minimum first investment of INR 30,000. That’s it. Unlike people who are new to Monexo, you do NOT need to sign up again on Monexo’s website. In two working days, you will see your Monexo portfolio in Cube.

Who makes the decision to lend?
As an approved lender, you make

  • the lending decision
  • decide on the amount to fund and
  • manage your own money
You can create a portfolio of loans based on your return expectation and risk taking capacity. Cube automates this for you by (1) asking for and setting your risk preferences, and then (2) making it super simple to invest in P2P lending regularly along with your other asset classes.

Who I am lending to?
Monexo originates borrowers with the following broad characteristics:

  • living in India
  • having regular identifiable income from Salary, Profession or Business
  • loan amount required between ₹50,000 to ₹5,00,000.
Monexo and Cube believe P2P lending is about credit inclusion at fair terms of interest.

What does Monexo verify before listing a loan in the marketplace?
Monexo lists only those loans which have gone through its proprietary screening process. This screening process has been built by the founders

  • based on their decades of Banking experience,
  • current technology tools available to verify the authenticity of the borrower and
  • financial information provided by the borrower.
Get in touch with Cube on your personal WhatsApp group to request access to P2P Lending. Once activated, you’ll find it as a Wealth option along with Mutual Funds, Equities and others.
Then, follow the wizard to set your auto-invest risk references and make your minimum first investment of INR 30,000. That’s it. Unlike people who are new to Monexo, you do NOT need to sign up again on Monexo’s website. In two working days, you will see your Monexo portfolio in Cube.

First investment criteria
It's INR 30,000 to get started with P2P. We enforce diversification across a large group of borrowers to reduce your risk. Once you are up and running you can invest amounts as little as INR 5,000.

What are the risks I should know about? How does Monexo address them?
One the screening of borrowers is done, every loan application received is given a Monexo risk rating. The risk category you choose for P2P lending in Cube are based on this rating.
  • Online security measures
  • Third party, independent trust company holding the funds
  • Diversification – by lending to many borrowers
Monexo has also partnered with CRIF Highmark Bureau in India and built a proprietary credit scoring model based on decades of payment behaviour by millions of Indian consumers to financial institutions in the past. This scoring predicts the probability of repayment by the borrower.

How can I be certain that Monexo uses my funds only for lending to borrowers?
All your investments into Monexo are sent to your escrow account before being disbursed to borrowers. The funds in the escrow account are in your name, managed by an independent administrator, IDBI Trusteeship Services Limited (ITSL). ITSL ensures that Monexo cannot use these funds for any purpose other than the one stated, that is, to make loans to receive loan repayments.

What is an escrow account? Why does Cube move money to my Monexo escrow account instead of just lending it to borrowers?
The amount you invest in Monexo is spread out over multiple borrowers in such a way as to match the risk profile that you have selected. Therefore, they are disbursed as and when a borrower match is found, and when that borrower’s loan amount is fully funded by you and other lenders. This means your funds need a holding area during the time it takes to complete disbursement - that is your escrow account. Your loan repayments are also credited to your escrow account.

Do I earn interest on my escrow account?
No. You don’t earn interest on the money that’s in your escrow account or during the period that you have committed money to a loan but it has not been completely funded by other investors yet. However, because you have set Monexo to auto-invest your money it spends as little time as possible in escrow.

When do I start earning interest on my loans?
You begin earning interest when your loan is disbursed to the borrower. That is, when the loan amount is completely funded by you and other investors.

How long does it take for my funds in escrow to be lent to borrowers?
It takes between 3 and 7 working days, but it depends heavily on the risk bucket you have chosen (diversified, conservative or moderate), the size of your investment and the set of borrowers available at the time.

Where do I find my loan repayments?
Your loan repayments are all credited to your Monexo escrow account. As and when borrower profiles match your auto-invest preferences, the funds in your escrow account will be disbursed as fresh loans. However, you can withdraw the money that is in your escrow account at any time.

How can I withdraw the money in my escrow account?
You can find the option to Withdraw at the bottom of your Monexo Portfolio screen in the Cube app. Monexo charges a small exit fee of 0.10% of the withdrawn amount, plus any bank charges.

What happens if a borrower delays a payment?
All borrowers are required to provide auto-debits to their bank account for their monthly repayments. They are given monthly email reminders prior to their payment due date.
The borrower is given a grace period whereby he/ she needs to pay latest by the 5th of the month - in case of banking holidays, weekends etc.
If the borrower does not transfer money by due date:
  • Reminders are sent by email and phone calls.
  • A late payment fee of ₹ 350 is charged for payment after the grace period.
  • An additional penal interest of 2 % per month calculated on a daily basis till the date of receipt of the amount due is also charged.
The late payment fees and penal interest received from the borrower is appropriated by Monexo to meet the costs incurred in connection with this process.

What happens if a borrower pays off a loan early?
Borrowers can pre-pay and close their loan, but only if they pay 100% of the outstanding amount. However, partial prepayments are not allowed. When a loan is closed, the balance amount that you are due is credited to your escrow account.

What happens if Monexo shuts down?
Monexo has appointed an independent administrator, IDBI Trusteeship Services Limited (ITSL) to manage your (and other customers’) escrow account. In the event of Monexo's assets being harmed or Monexo going into liquidation, this will not affect your money. This still belongs to you. For money that has been lent, ITSL will continue to receive re-payments from borrowers and distribute the collected payments to the lenders.

Can I interact with my Monexo investments only through the Cube app?
Not at all - you can continue to access the full-featured Monexo experience at monexo.co regardless of whether you use Cube or not. For example even though you’ve automated your Monexo P2P lending investments through Cube, you can log into your account on Monexo’s website and manually make a loan there.

Goals

Where does Cube store the money I contribute towards goals?
All goal contributions are held in Reliance Liquid Fund in your name. The fund earns about 6.5% annually, compared to typically 3-4% in a bank account.

This month I have less money to contribute than the total EMIs for all my goals.
No problem. By default Cube will allocate money towards EMIs for the goals that are most recently due. In that case the goals that are farthest away won't see an EMI contribution for that month. Or with a single tap you can customise how you want to distribute your money among your goals. In either case, Cube will auto-adjust the EMIs accordingly.

What happens to my money if I delete a goal that I have already contributed to?
The money stays in the liquid fund. The next time you run Manage My Money, Cube will re-allocate that towards other goals. Of course you can also withdraw that money into your bank account under Sell Mutual Funds.

What happens to my money when a goal is complete?
Cube will notify you. You have the following options: (a) let the money remain in Cube in a liquid fund (continuing to earn about 6.5%) (b) keep the money in Cube but stop tracking the goal. That frees up the money for other goals (c) move the money back to your bank account.

What happens when I change a goal?
You can change both the amount and the due date of the goal. Cube updates the % complete and the EMI appropriately so that you continue to be able to reach the goal in time.

What happens if I reduce the goal amount to a number less than what I already have saved for? For example, I have saved INR 2 lakh already but I reduce the amount to INR 1.5 lakh.
The balance (INR 50,000 in this example) becomes available for other goals. You can also withdrawal it to your bank account from Sell Mutual Funds.

Expenses

I don't see my biller in the list
Let us know! Message us on the WhatsaApp group we set up for you when you joined. Cube can get into the Bharat Bill Payment Service, so there is a good chance we can find your biller.

Do I need to pay each expense individually when it's due?
Nope. Tap Manage my Money on the Cube home screen. Any expenses that are due in the next ten days show up in the list. Verify or edit the amount against each expense and transfer the total amount into Cube. Cube will make sure it is paid to each biller or bank account.

Do I need to enter the amount for each expense?
Cube can fetch the due amount for most utility bills so you pay the exact amount. Most staff salaries and fee amounts won't change month to month. Simply update your credit card due amount.

I've already paid an expense outside of Cube. How do I skip it in Cube?
On the Manage My Money screen, tap the expense and on the next dialog tap the 'Skip this expense' button. You'll only see it the next time it's due. If you just want to delay it by a week, tap the 'Remind me next time' button.

How do I know when my domestic staff salaries have been credited into their account?
They'll be notified by their bank. This is a regular NEFT bank transfer.

How long does it take for my credit card bill to be paid after I send Cube the money?
It takes a maximum of three working days for the money to to reach your credit card provider. Set your due date within Cube taking this into account.

How do I see a history of my expenses paid?
Under Cube Settings, tap Move and then History.

On any given day, how do I know what expenses are due?
Simply tap the Manage My Money button on the home screen. On the screen, tap 'Expenses' for a list of all bills due in the next ten days.

What happens if I don't have enough money in my bank account to pay my expenses that week?
You use your Cube Emergency Fund. When you started using expenses, Cube recommended that you leave at least two months' worth of expenses in this Fund. This money is stored in a liquid fund in your name. If you don't have enough money in your bank account to pay the bills due, Cube will liquidate the shortfall from the Emergency Fund. When the money is credited to your bank account, you'll now have enough to pay your expenses. Cube will also help you remember to replenish your Emergency Fund the next time you run Manage My Money.