Finpeg: Most trusted Platform for Investing in Mutual Funds ?
- 7 July 2020 | 168 Views | By Mint2Save
The TV and newspaper ads over the past few years have been promoting the SIPs and mutual funds and the amount of money invested through SIP, clearly indicates that people are investing in mutual funds through SIP. They claim that SIP is the best way to invest.
Now a startup is raising a question – Are SIPs really the best way to invest in mutual funds? In this article, we are going to talk about a fintech company, Finpeg, found in 2016 and located in Thane, Maharashtra. The company is owned by Indranil Guha and Shubham Satyarth, both being IIM Bangalore alumni.
What is Finpeg?
As per a recent report, Indian Robo advisory firms currently have $20 million under-investment, and they are expected to grow at nearly 54% year-on-year, for the next 4 years. Finpeg is one such independent Robo-advisory firms in India and has huge growth potential.
Finpeg offers a platform to its customers that combine the warmth of human-assisted transacting and sophisticated algorithm-driven investing. As per the founders of Finpeg, their system is arguably the most advanced algorithm-driven Robo-advisory platform for designing investment portfolios. The company’s primary motive is to ensure that their customers don’t end up having to talk to a Robo, instead, they always have a friendly and a trusted advisor at hand to handhold them through the initial on-boarding and the subsequent investing journey while their cutting-edge technology works behind the scene to make their money work the hardest.
Today, when you go to an advisor, the only advice they give is to set up a SIP in the best mutual funds. Finpeg brings something more to the table, they don’t bring SIPs but a set of cutting edge investment strategies formed to address the requirements of each investor.
Are SIPs really the best way to Invest in Mutual Funds?
SIP is not a solution for everyone. For example, SIP is not good for a retired person who has received a big amount post-retirement and his aim is not to grow his money but to get the maximum possible monthly income. Most of the retired people go for FDs, which in the present scenario is not fetching any significant returns. Finpeg’s cutting edge monthly algorithm helps such customers to generate a steady monthly cash flow which is 75% higher than what bank FDs yield.
How is Finpeg different?
Finpeg does not recommend investment mechanisms like one-time lump-sum, SIP’s, STP’s, or SWP’s. They have designed some impressive investment mechanisms in-house after having stress-tested them for various market periods. The past performances of these investment mechanisms are such that they compensate you for having invested in regular funds with Finpeg and also have a very high probability of exceeding the returns of investments made in plain mechanisms indirect funds.
Signing up with Finpeg
You can signup with them in multiple ways, via their mobile application or the website.
Once you verify your account using the OTP, you will be directed to your dashboard.
Complete your registration by filling the below details.
Next, you need to fill in your address.
Select option Yes, if you need to assign nominee to your account. In case you choose YES, you will be asked to fill in the below details:
Next, you need to fill in your FATCA details.
The final step is to provide your bank account details, and you are ready to invest!
The tools offered by Finpeg
- Explore Funds – You can check for different mutual funds under this option and get the complete details about the funds like NAV value, expense ratio, exit load, AUM, performance, etc.
- Retirement Planner – With this tool, you give the number of years from now when you want to retire, amount you think you will need per month, number of years you think you will need amount for, and increase in monthly savings by the percentage you want. Based on these details, they provide you with your retirement plan.
- SIP Calculator – Based on the amount you can invest in SIP, the number of years for which you can invest, and the percentage by which you can increase your SIP value, they provide you with SIP numbers in 3 categories – Conservative portfolio, moderate portfolio, and aggressive portfolio.
- Lumpsum calculator – It takes in a lump-sum amount you want to invest for X years and based on the input they give you the amount you will hold at the end of X years in 3 categories – Conservative portfolio, moderate portfolio, and aggressive portfolio.
Some other tools are Rolling Return Calculator and Robo advisor. What are the different types of mutual funds?
Different offerings by Finpeg
Finpeg Alpha SIP: What is AlphaSIP?
As per the company, it is the most advanced algorithm for recurring investments and far better than monthly SIPs. Unlike regular SIPs, this strategy ensures that every installment gets the best possible entry. The plan does a periodic portfolio optimization and ensures investors are always invested in the best performing mutual funds. As per data shared by the company, if you were to invest in NIFTY every month for 5 years, Finpeg’s AlphaSIP strategy would have delivered higher returns than a regular SIP a staggering 98% of times.
This is best for lumpsum investments. This strategy intelligently deploys and redeems your money as per market valuations. The strategy is to put in more money when the market is bear and redeems more when the market is in a bull phase. It also does optimal rebalancing to ensure that investors are always invested in the best performing mutual funds. The company claims, if customers were to invest in a NIFTY index and hold the funds for 5 years, Finpeg’s Lumpsum strategy would have delivered higher returns in 94% cases than a regular buy and hold.
Finpeg OnePM MIP
This is a great option for people who are looking to earn a stable monthly income. Stocks market is not for everyone, especially not for those whose life runs with monthly income. Such people can register with this option and get a cash flow of up to 1% of the investment amount per month. The calculations are direct – You invest 5 lacs under this plan and you start getting a cash flow of 5,000 from the next month. You continue getting the monthly payment till the time you stay invested.
Is Finpeg good?
Technology-driven platform – Once you sign up with them for one of the strategies, their platform takes over and seamlessly executes the strategy. All you need to do is just sit back and watch your money grow. The platform takes care of the fund selection, entry, rebalancing, and exits. With Finpeg, there is the active management of your money to an extent that the platform does it on a daily basis!
Security – The security of their platform and the privacy of all customers’ data extremely is taken seriously. They have built a system with best-in-class security and privacy features. The service is hosted on Amazon Web Services and all sensitive client data is encrypted and stored with 256-bit SHA encryption.
The company is growing at a rate that is unheard of in any industry. Finpeg has crossed an AUM (Asset under Management) of Rs. 50 crores within just 13 months of going live which is a great achievement. This makes them the fastest investment advisory startup in the country to cross this milestone.
Words of caution
They are putting the money in the Regular schemes in which the expense ratio is higher by 1-1.5% and hence your return will be slightly lower. If you can do research on your own and take decisions, it is always better to invest in direct plans.
In one of their offering, they are giving 1% per month on the invested amount. The company has not disclosed where they are investing the more to get such kind of returns. Returns 1% per month is 12% a year. In real life, it is a difficult proposition. It is not easily unattainable, but they claim to give that kind of return as long as you stay invested. So, before you invest in this scheme, dig a little deeper.
With all the features and numbers shown by the company, it does make sense to invest in Finpeg’s investment algorithms. If you are looking for an investment platform, do give a try to Finpeg and give your feedback to us.