Wealth First, Cube’s mutual fund advisor does the research & shortlists a small set of the top performing funds. This reduces your research time & is based on:How well the fund has done in the last 1, 3 and 5 yearsHow frequently it’s composition has changed over the monthsHow much risk the fund manager has takenWhat instruments the fund invests inHow stable these returns have beenHow large the fund isHow long the Fund manager has been in chargeHow many others funds are managed by the fund managerWhat the Fund Manager’s track record has beenCube has then grouped these by the risk level you choose to take on. There are also some international funds on Cube that can give you global exposure without the risk of investing directly in stocks.
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.
Yes! While the app asks you to pick your risk level once you are logged-in to the Cube App you can even invest in multiple categories. In your Mutual Fund preferences, set the amounts 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.
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 risk level you choose, so that you don’t need to!
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. Moreover, Cube with the help of our Mutual Fund Advisor Wealth First informs you when you need to sell your funds. Cube’s advisors are constantly tracking the markets and are able to help Cube users avoid losing money in bad funds. One example of this is what happened to Franklin Templeton's open-ended debt funds back in 2020. Cube was able to inform users to exit their holdings well in advance saving investors from losing their money.
Withdrawals (or ‘redemptions’) take between 2 and 3 business days to reach your bank account. These funds will also show as ‘under process’ in your Cube’s history section. You’ll receive an email/sms from your bank and the fund house when the money is credited into your bank account.
No. Your mutual funds are always held in your name with the fund house. Even if you stop using Cube, your funds remain unchanged.
Not directly from within Cube. You can of course withdraw money (fully or partially) from any fund into your bank account, and deposit into a new one. Also, if you upgrade to Cube Prime you can get a free analysis of your existing portfolio & get recommendations on which one to sell & hold from Cube’s Mutual Fund Advisor.
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’ in your Cube app and won’t be available for withdrawal. This is true of all mutual fund investments; not just specific to Cube.
The category names indicate the risk level of the mutual funds. Liquid funds are conservative funds whose returns are broadly stable. Debt funds have historically also provided stable returns & are spread across low risk fixed-interest products. They are slightly more volatile than liquid funds and offer correspondingly slightly higher returns. Moderate & Aggressive category funds are equity funds, the latter are both typically higher risk and offer higher returns than the former. Mutual Funds - International offer exposure to global markets like Japan, China, US markets etc and should be treated as high risk-high returns funds.
Just like withdrawals (or ‘redemptions’), deposits also take between 2 and 3 business days to reach your bank account. These funds will also show as ‘under process’ in your Cube’s history section.
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. You always have full control over your money.
What inspires trust is Purnartha’s track record. They have over INR 7000+ crore under advisory for over 7500 Indian investors globally. Over 10 years, their annualised returns have been over 37.3%. They are also wealth advisors for Cube’s own senior management – we’ve literally put our money where our mouth is.
Once you make equity buys and sells, your brokerage sends you contract notes (also known as trade notes or similar). You simply have to forward those contract notes to email@example.com. Your portfolio will be updated within 24 hours. Simple.
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. Why wait once you know what to do!
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.
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. You can also see a simple video that explains the fee structure: https://youtu.be/e4utnYPpusI
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 complete the next steps. However, if you have cash on a regular basis to invest, consider a SIP plan.
P2P lending is an investment option/asset class where you loan money to people. Cube has a partnership with Faircent (www.faircent.com), a RBI licensed P2P NBFC (Non Banking Financial Company). Faircent is a marketplace that brings 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 Faircent is disbursed to borrowers. In return you receive monthly loan repayments over the tenure of the loan. The returns i.e. the interest rate on the loan depends on how risky Faircent evaluates the borrower to be (higher the returns, the risk).P2P is an attractive asset class with upto 12% returns. 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 12 months. To see the latest holding periods & returns for current schemes see the Cube App.
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. Faircent was the first P2P entity to receive this license from the RBI.
You can expect 12% returns over 12 months. To see the latest holding periods & returns for current schemes see the Cube App.
Faircent earns only when you start earning.A non-refundable 1% transaction fee from retail investors and 2% from institutional investors is charged on the loan amount disbursed. This is deducted from the first EMI.There are no additional fees to invest in P2P lending through Cube.
Please drop a mail to firstname.lastname@example.org with the request to map your Faircent account to Cube.
Your P2P portfolio is created based on the risk category you select. 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. Faircent assign the borrowers to your portfolio that match the risk category you have selected after they have completed their vetting process. This is what makes investing in P2P via Cube so simple because you don’t have to do all of the borrower selection yourself to have a diversified portfolio created.
Faircent has a strict listing criteria for evaluating each and every borrower before they are allowed to be listed on the P2P platform. Faircent physically checks their office and residential addresses, it verifies their income statements, payment capabilities, past performance in order to understand their ability, stability and intent. Faircent evaluates each borrower on more than 120 criteria across 400 data points which includes Financial, Professional, Social and educational background, loan records, etc. to cherry pick only the most eligible borrowers for Lender’s perusal. All such information about each borrower is shared on the borrower listing page so that an informed decision can be taken by Lenders if you wish to view it.
You’ll invest INR 30,000 or more 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. The EMIs you receive are also auto-invested however you can change this on the Faircent website at any time.
Once the screening of borrowers is done, every loan application received is given a Faircent risk rating. The risk category you choose for P2P lending in Cube are based on this rating. The risk rating is based on:Stability: Stability is understood basis the nature of borrower’s residence i.e. rented/self-owned, length of stay at the same address, length of employment in the same organization etc.Ability: Ability is evaluated by studying the borrower’s income & expenditure behaviour. For example, a healthy percentage of income saved reflects better ability of borrower to repay his/her financial liabilities.Intention: Intention is understood by analysing the past repayment behaviour of the borrower towards their financial liabilities. Delayed repayments in past financial transactions reduce the chances of loan approval. For this purpose, bureau reports are procured (with prior consent from the borrower) and evaluated.Banking Habit: A bank statement helps to judge banking habits of a borrower. Several parameters like average monthly balance, cheque bounce and unaccounted transactions, if any, are taken into consideration for assessment of a borrower’s credit worth.Verification at different levels: Other than telephonic verification to get first-hand information from the borrowers, Faircent also undertakes physical verification at both the residence & office address. All documents submitted by the borrower are also verified for forgery using state-of-the-art technology.Faircent Rule engine: This is an in-house algorithm that assigns different weightages to all the above factors to compute a score that helps determine the interest rate, loan tenure and amount at which the Borrower’s loan request can be listed on the platform to secure funding from the lenders.
No! You’ll see your entire Faircent portfolio within Cube, including investment you had made prior to Cube. You will though need to make an additional investment of INR 750 to activate your Faircent account in Cube (this is a Faircent requirement). This investment is then lent to borrowers just like your other investments in Faircent.
All your investments into Faircent 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). Specifically:Faircent has no right to intervene or option to withdraw monies for its own use from this account.Lenders give instruction through Faircent to ITSL (IDBI Trusteeship Services Ltd.) who in turn will forward these instructions to ICICI for execution.Faircent cannot do any transactions, only view the transactions done through this account.The trustee will independently audit the operations of this account on a regular basis.A lender can withdraw money from the Escrow account anytime by simply writing to us and the money will be transferred to his bank account within 24 banking hours.
The amount you invest in Faircent is spread out over multiple borrowers in such a way as to match the risk profile that you have selected and create a diversified P2P portfolio for you. 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.
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 Faircent to auto-invest your money it spends as little time as possible in escrow.
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.
It takes between 3 and 7 working days, but it depends heavily on the risk bucket you have chosen, the size of your investment and the set of borrowers available at the time.
Your loan repayments are all credited to your Faircent 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. You can also change your auto-invest settings on Faircent.com at any time.
You can find the option to Withdraw at the bottom of your Faircent Portfolio screen in the Cube app.
After the loan is disbursed, the Lender will receive EMIs on or before the 15th of every month. If a borrower fails to pay an EMI within a stipulated time, a penalty is levied on the borrower which is payable to the lender.The first EMI is payable by cheque. Thereafter, repayments– EMI and pre-closure – are made through an online, automated procedure. Every month the entire EMI amount is collected directly (through auto-debit) from the borrower’s account to the Escrow account, from where it gets reflected in respective lenders virtual account.
Faircent has appointed an independent administrator, IDBI Trusteeship Services Limited (ITSL) to manage your (and other customers’) escrow account. In the event of Faircent’s assets being harmed or the company 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.
Not at all – you can continue to access the full-featured Faircent experience at their website regardless of whether you use Cube or not. For example even though you’ve automated your Faircent P2P lending investments through Cube, you can log into your account on Faircent website and manually make a loan or withdrawal there.
Once you create an account on Cube Wealth, you will have to submit your LRS registration form online or offline depending on your bank. Some banks may require you to physically go to a bank branch. Once you submit the form & it is accepted, your brokerage account will be created. Cube handles this account with clearing services firm DriveWealth. After this you can add money to your DriveWealth (US Brokerage) account and buy any US Stocks on the Cube Wealth App.
The minimum amount for investment is $1. Currently, you can invest up to USD 250,000 every year in foreign stocks from India. This amount can change, subject to RBI guidelines. So, for now, your investments in US securities are also governed by the same limit. You can buy & sell stocks from the Cube Wealth app itself.
Stockal offers nearly 3,400 securities – listed on NASDAQ and NYSE – as of now. These are a mix of stocks and ETFs (Exchange Traded Funds). Almost all the marquee listed companies in the US with USD Billion+ market caps, are available.
Your investing (brokerage) account is opened with our partner platform, Stockal and in the US your account is held with clearing services firm DriveWealth – regulated by FINRA and SEC. It is a licensed carrying and self-clearing broker offering brokerage services to global investors. DriveWealth is backed by Softbank Group and other leading venture capital firms in the financial services ecosystem.
There are mainly 3 types of fees associated when you invest in U.S. Equities1) LRS remittance fees (Charged by your bank when you transfer funds abroad)2) Processing fees (Convenience +Annual brokerage fees + Tax Certificate charged in Cube app)3) Withdrawal fees (A fee charged by the U.S. bank on withdrawal of amount from the U.S.)
It takes a couple of minutes to complete the onboarding details within Cube. You will also need to upload your address and ID proofs during this process. After which it takes 2-3 week for completion of LRS process & allocation of stocks to your account.
Once you complete the initial process on Cube app, your account opening process initiates. The tentative timelines for the process are as follows:In 2-3 business days, your account is created with our partner.Once the account is created – you will have to submit your LRS registration form online or offline depending on your bank.After LRS form submission – it takes 10-15 days (depending on the bank) for the money to reach your brokerage account in the U.S.Once the money reaches the brokerage account – the money is deployed in the shares selected by you.
Anyone of the following documents for a combination of Picture id proof + Proof of address (PAN + Aadhar/Utility Bill)Personal details Bank detailsEmployer & financial details (required by stockal as per the compliance under FEMA and AML.)
The minimum amount you can reinvest after your first investment is $1.
No lock-in. Funds can be accessed in 5-6 business days.
Just tap on the “Send” button on the Cube Wealth app. Enter the amount you want to send to your brokerage account. And post-completion of the LRS process, the funds will be available for you to invest in your favourite US stocks.
All you need to do is tap on the “Remit” button in the Cube App & the amount will be credited to your bank account. It takes 5-6 business days for the money to hit your account. There is a $10 fee associated with withdrawals, charged by the US bank, so the cash balance in your account should be at least $35 at the time of placing the withdrawal request.
There is no TDS (Tax Deduction at Source) for your stock market gains in the US. So when you make money and send it back to your Indian bank account, the broker in the US does not deduct any tax on it. You will have to pay Short-term Capital Gains Tax OR Long-term Capital Gains Tax in India, whatever is applicable. Short-term Capital Gains apply if security is held for less than 12 months. For a detailed discussion, please contact our wealth expert.
You own the stocks through your account with Cube and Stockal’s partner – DriveWealth.
You global investing accounts are held by brokerage and clearing services providers. The custody of your account is managed by some of the largest banks and clearing firms in the world. If Stockal goes down, your account will still be safe and secure with them and you will be able to access it and/or move it to another brokerage firm as you please.
Yes. We use a model portfolio to make investments.
Generally, no. However, if a client cannot invest in one or more of our portfolio stocks due to constraints, we do provide an alternative replacement for that stock.
As soon as the client account is activated in the fund database.
A specified range of cash (less than 5% of investment/portfolio amount) is usually kept as buffer for transaction fees, operational and other costs. Beyond that range the cash is invested in the portfolio. Cash calls will be taken in extreme circumstances (for e.g. if a current portfolio stock does not perform well and we may exit the position. In that case, a cash call would be taken only if a new replacement company stock is not available).
As of December 2018,Home Building Materials: 34%Consumer Discretionary: 29%Financials: 19%Consumer Staples: 18%
The maximum monthly drawdown has been -9.1%. The maximum overall drawdown has been -12.7% post fees, while for NIFTY it was -11.1% for the same period, ie Aug 2018 to Oct 2018.
Between 10 and 15 stocks.
1 portfolio manager and 2 research analysts.
Till now the portfolio has had zero churn (no stocks exited since inception date).
We aim to keep the churn to a minimum level (less than 10% of the portfolio).
We aim to invest for a period of 8 to 10 years.
Auditor’s fees: INR 1500 per annumBrokerage: 0.1% per transactionDemat charges: INR 600 per annum
Consumer Loans via Merchants is powered by LiquiLoans. It’s a platform which enables investors/lenders to lend directly to multiple end creditworthy / prime retail borrowers. Investors provide retail loans (largely Zero Cost EMI Consumer loans) to Credit-worthy / Prime Individuals with a high credit rating (Avg. 700 Credit score); for largely consuming Non-Fatal Discretionary Healthcare and Up-skilling Education Programmes. These services are offered through reputable healthcare and education partners (vendors) that typically run over 3-36 months (Avg. 9-12 Months).LiquiLoans is amongst the few lending platforms to receive the Certificate of Registration (CoR) as an NBFC-P2P from the Reserve Bank of India (RBI).
Multiple borrowers sourced on the platform are largely provided with an option to take a Zero Cost EMI Loan (The vendor subsidises the interest rate) when a borrower opts in to purchase their discretionary healthcare or education program. The vendor with the help of the Zero Cost EMI proposition, helps borrowers to subscribe/opt in for the product/ service and make its payment in parts over time. A borrower agreement is signed and an auto-debit mandate is set up to automate the monthly EMI payment.
LiquiLoans doesn’t charge any upfront/exit/transaction fee to the investor/lender. The entire loan servicing fee of LiquiLoans is earned only after the lender makes his / her indicated yield i.e. If the lenders’ portfolio’s net pre-tax yield is above the indicative pre-tax yield (XIRR) scheme selected; then LiquiLoans’ fees will be the difference of Lender’s Actual Portfolio Pre-Tax Yield XIRR Less Indicative Pre-Tax Yield (XIRR) of the Lender; else will be NIL.
Borrowers are vetted through a proprietary algorithm which checks some or all of the following: i. The borrower’s credit profile (CIBIL / Credit Bureau Score & Re-payment track record) ii. Social (Location, Age, Current Job Designation) iii. Banking History - This information is used to assess the suitability of the borrower
As with any type/form of lending, there are some risks, the biggest being that a borrower doesn’t repay. There is a risk that a borrower may default. In case of default, LiquiLoans uses a combination of soft and hard collections to collect missed payments on the lender’s behalf. Though the company has the best in class risk management systems in places, defaults may happen and LiquiLoans minimizes the risk by ensuring that investment of each lender is diversified across a number of borrowers if the lender has opted for the auto-invest feature. In case of defaults, LiquiLoans will assist / facilitate the collection through its in-house collection mechanism and may also send a legal notice on behalf of the lender to the borrower. LiquiLoans has already signed up with 2 Cash Collection Agencies to recover monies who then on the investor’s behalf will try and reach out to the borrower and get back the outstanding funds.
The amount you invest / lend can be spread across multiple borrowers by opting for the auto-invest feature, where the platform assists the lender by matching borrowers to the risk profile / criteria that an investor has defined. Loans are disbursed as and when a borrower match is found. The borrower’s loan amount is fully funded by you and various other Lenders; till then funds are held in an escrow account. Your loan repayments are also credited back to an escrow account.
Lenders agreement is a legal document which is signed by the lender and LiquiLoans agreeing to participate on the P2P platform subject to conditions and compliances required by the RBI. Auto-Invest Mandate is a voluntary document, which investors largely provide to define their lending criteria, enabling them to reduce their work and enables the platform to provide assistance w.r.t. sourcing borrowers, carry out requisite due diligence, sign the agreements with approved borrowers and disburse monies granularly to multiple borrowers & recover the same on behalf of the lender.
Consumer Loans via Merchants is largely providing Zero Cost EMI Loans and the returns are made from the subvention. In P2P direct to borrower (traditional P2P) lending, there is no subvention.
As per the updated RBI guidelines of Dec 2019, the following limits are applicable to any person(s) lending on P2P platforms: (i). You can maximum lend INR. 50 lakhs per PAN Card across all P2P lending platforms. (ii). You can maximum fund INR. 50,000 per loan. However, LiquiLoans platform is currently only accepting a maximum of Rs. 10 Lakhs per PAN from any investor.
The minimum amount you can reinvest after your first investment is INR 5,000
Consumer Loans via Merchants has many scheme options to choose from. In one of the schemes, the funds are withdrawable by listing the loans for sale in the active secondary market. Full or all funds have been accessed in 3 business days by all investors till date (even in the worst of the pandemic times). However, LiquiLoans doesn’t define / guarantee any withdrawal timeline.
Lenders can expect a net pre-tax yield varying from 7.50% to 10.50% XIRR Max. on the net invested amount. LiquiLoans, however, does NOT guarantee any returns. In the past, our Lenders have earned an average return up to 10.5% - 12% XIRR depending on the scheme opted by them.
As per RBI regulations, a trustee manages and operates the escrow account at all times. The trustee has access to all necessary data points that allow them to take necessary steps to recover the funds on behalf of Lenders.
All borrowers are sourced on the platform through various partner tie-ups. These are curated through various data points and undergo stringent verification. Funds lent at all points are routed directly through the Escrow (3rd Party) bank account and the same is managed by an Independent Trustee. Most of the loans given have a defined end use through tie-ups with various service providers like health care / educational institutes. In case of default, the service provider reserves the right to cancel the services. The borrower agreement is a legally binding document and collections process is invoked to recover funds which will impact the borrowers' high credit rating. In case any borrower ends up defaulting even after the recovery process is initiated, LiquiLoans earns no income till the lender makes his indicated yields. Thus, a lender/investor is safeguarded to a large extent and risk is minimized. Please read and understand Terms and Conditions of the lenders agreement before investing.
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.
Safegold offers 24 Karat Gold of 995 fineness (99.5% pure).
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.
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.
If you’re a new customer, the initial investment in gold through Cube is INR 15,000. The minimum subsequent investment is INR 50.
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.
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.
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.
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.
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.
Any Indian resident can invest in Gold through Cube.
No, there is no lock-in period from the date of purchase.
No, you cannot have a joint account for SafeGold.
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.
In a co-investment, multiple investors pool their resources together to invest in a product like a car, bike, machinery, or furniture. The return earned on leasing this product will be split across the co-investors based on the proportion of their investment. Let’s say 5 friends decided to invest in a car. Each person invests ₹50,000 to buy a car worth ₹2,50,000. This implies that each co-investor becomes a 1/5th partner or has 20% fractional ownership of the car.
Any individual above the age of 18 with a valid PAN card and Aadhar card can invest in Grip using Cube Wealth. Investing in GRIP gives you lucrative benefits like 12% IRR (post-tax), recurring monthly income, and fractional ownership of an asset. GRIP lists an investment option after performing thorough due diligence and risk mitigation processes based on 3 factors: financials; corporate profile; business performance. However, the returns are not guaranteed and hence investors' discretion is advised.Note: If you are a corporate investor, please reach out to your Cube wealth Coach.
An asset is listed on GRIP only after all these steps are successfully completed:- Finding the right leasing partner and the asset that GRIP can work with- Negotiation with the leasing partner on the deal and contract terms- Due diligence of leasing partner, management and financial performance- If applicable, physical verification of the asset/leasing partner’s office/and deployment site- Credit grading and review of the company by the GRIP teamDue diligence check by an investment committee
Yes, GRIP follows a rigorous due diligence process and also ensures that the data is available to the investor when they go live with any investment opportunity.
GRIP’s partner, JSA Law, is one of the most reputed law firms in India. They review and advise GRIP on all their agreements. However, if you wish to hire a lawyer of your choice, GRIP will be happy to answer any questions that you may have.
You can keep a track of your GRIP investment with Cube Wealth’s simple portfolio tracking feature. It will tell you everything you need to know about your investment. You will also receive a monthly report via email regarding the performance and returns.
Filing income tax is compulsory for investors who are earning post-tax returns as a partner in an LLP. There are no additional tax liabilities from your GRIP investments but it is necessary to disclose all sources of income.
Filing ITR-3 is similar to filing any other ITR. The difference lies in the form that is used. Here’s a walkthrough of the process of filing ITR-3: 1. Downloaded the ITR-3 form in excel/XML format from the income tax e-filing portal.2. Fill in the information in the ITR-3 form based on the GRIP Investment Declaration (GID) provided by GRIP. 3. Disclose other sources of income in the relevant tabs in the ITR-3 form. 4. Validate all tabs of the ITR-3 form and calculate the tax. Profits earned from an LLP are tax exempt. Thus, tax on GRIP investments will be nil. 5. Submit the ITR on the income tax e-filing portal and e-verify it.
A lease is a contractual agreement where a lessee (user) pays a fixed amount of money across a fixed duration of time to a lessor (owner) for the use of an asset like cars, bikes, buildings, furniture, laptops, etc.The lessee will pay interest on the principal amount which is the profit that the lessor will earn. Leasing can thus generate a recurring monthly income along with a lucrative return. GRIP’s current return is 12% IRR (post-tax).
Yes, NRIs can invest in GRIP using Cube. However, at this point, GRIP can receive the investment amount from NRO accounts and not NRE accounts. This is due to the various compliance obligations that are put in place by RBI. Our leasing partner GRIP is working on a solution where NRIs can invest with both the NRO and NRE accounts in the future. Stay tuned for more updates.
An investor will need to have a valid PAN card and Aadhaar card to sign up with GRIP on Cube Wealth. NRIs can provide a copy of their passport in case they do not have an Aadhaar card.
GRIP ensures that they have a contingency plan in place for repayment. Inventors are required to submit securities like security deposits or post-dated cheques when they invest in an asset with GRIP. Furthermore, GRIP has the ability to reclaim assets (repo) for selling or re-leasing. However, investors must note that while GRIP has these safeguards in place, it does not guarantee 100% returns in case the leasing partner does not fulfil the payment obligations.
GRIP evaluates 3 major aspects for any potential corporate leasing partner:1. Financials: Analysis of annual reports and MIS for previous 12-18 months to understand scale, growth of the business, unit economics, profitability patterns, current cash position and outstanding debts and loans2. Corporate Profile: Professional backgrounds of Founders/ CXOs, shareholders, ongoing litigations as well as reference calls with key customers and other stakeholders.3. Business Performance: Review of key contracts, industry trends, asset and OEM quality to enable estimation of future performance for the lessee.
An investor’s returns will be credited to their registered bank account.
Currently, investors can choose the 36-month investment plan on Cube Wealth. There are more investment plans currently in the works. Check the Cube Wealth app for more updates.
The payments and returns you receive are post-tax which means that you do not have to pay any additional tax. The explanation would be that return of capital or distribution of profits from an LLP are tax exempt in the hands of the partner of the LLP.
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