Frequently Asked Questions

Finpeg is an investment robo-advisory platform that deals exclusively with advisory and selling of mutual fund strategies and schemes. We offer cutting-edge investment strategies with a proven track record of offering superior returns and phenomenal downside protection.

Finpeg is your one-stop solution for all mutual fund investment needs, be it a recurring monthly investment (NOT SIP!), a one-time investment (NOT LUMP-SUM!) or a regular monthly income from your mutual fund investments (NOT BALANCED FUNDS!). Everyone seems to claim that they are the best Robo Advisors in town? But are they? In fact, are they even Robo Advisors or just some "Online Mutual Fund transaction Platform"? All they do is just help you buy Mutual Funds Online. Finpeg is a robo-advisory service in truest of sense. For starters, we do not sell plain vanilla SIP to everyone. We have customized investment strategies that is built to suit your every investment requirement.

We believe that there is a lot of intelligence that can be applied to your investment approach and then get a machine to automate that approach. And that is precisely what we do at Finpeg. We build investment algorithms that are geared towards delivering stellar returns at phenomenally low risk.

A bit more on robo advisory platforms here. Haven't we been told that SIPs are the best way to invest in Mutual Funds? SIP, my investor friend, is an "old-school" mutual fund investment mechanism. It was introduced in India in the late '90s and hasn’t undergone any significant change since then. Do you still buy a mobile handset without a touchscreen or watch your favourite series on a CRT TV set? You don’t because the same appliances are being continuously optimized and you buy what’s the most updated version of the appliance. Why should investment mechanisms remain the same for 20 years!

SIPs have few glaring shortcomings:

1. SIPs are essentially a passive investment strategy. Ever heard the term – “SIP it and forget it”? That’s what SIPs are. You start a SIP and forget all about it till the time you need the money back. SIPs invest all your money into equities every month irrespective of the market conditions. While the argument is that it helps in cost averaging, the truth is that averaging works both ways. There is no intelligent tactical allocation in play.

2. SIPs do not optimise your portfolio for the best mutual funds. If you SIP for 10 years in a fund, you have essentially stuck with the same fund for 10 years irrespective of its performance. Read more. We advise many changes to the prevalent mutual fund investing mechanisms and all of them are directed at two things – low risk and high returns.

In terms of the specific plans we offer, everything ultimately boils down to your requirements. Have a look at Finpeg’s offerings here. Hmm. Interesting observation. But did you know that with SIPs, you can also end up losing money? Don't believe us?

Well, if you would have started an SIP in a 5-star rated Mutual Fund (SBI Blue Chip) in Feb 2007 and continued with the SIP for 5 years, your annualized return after 5 years would have been -0.6%. And this is just one example. That's a very important question. Yes, the commission structure does create a conflict of interest. In fact, investing in direct plans also gives you a return boost of 0.7%-0.8%. But we overcome both these factors, and we overcome them by a mile! Here is how:

1. Alpha returns at much lower risk:

The concept of direct funds is that by investing in direct funds, instead of choosing to get help from an advisor, you save the commission that accrues to the advisor/broker. How much is that delta? Around 0.7%-0.8% in most cases. Let's consider an example - If you invest via SIP in a regular plan, let’s say, you earn 12%. If you invest via SIP in a direct plan, you’ll probably earn somewhere around 12.8%.

Let's make it more concrete.

Suppose you did SIP in ICICI Value Discover Fund and looked at returns for all 5-year periods since the inception of the fund. With SIP in a regular fund, your average returns would have been 21.7% and in the worst-case, you would have earned just 9.9%.

Now if you switch to direct funds, you can add maybe 0.7%-0.8% to your returns. This implies that your average return would have been around 22.5% and worst case return of 10.7%.

Plot twist – A geek with soda glasses walks in the room and has data to show that he has an investment mechanism called AlphaSIP where on the same fund, your average returns would have been 25.2% and worst case return would have been 17.6%. Well, that geek is us!

So yes, we create an alpha of 3%-4% even over direct funds.

2. No conflict of interest:

To simply put it, Finpeg would have recommended the exact same funds even if our revenue model wasn’t based upon commissions. We are transparent about why a particular fund scheme is a part of our recommendations. Talk to us to know more about this! It's obviously not magic. It's simply an application of data science and machine learning to the investing methodology.

Let's back up. When you do an SIP or a lumpsum, all you are doing is investing in actively managed funds. The investing strategy itself is very passive.

1. There is no intelligent tactical asset allocation and rebalancing.

2. There is no portfolio optimization. You are stuck with the same funds till the time you sell your investments.

3. There is no intelligent exit strategy.

Our algorithms provide an intelligent active management of your portfolio that delivers alpha returns. The 4 pillars of our investment strategies are as follows:

1. Intelligent Fund Selection - Our proprietary fund-selection framework ensures that you invest in a portfolio that maximizes returns while minimizing risk.

2. Intelligent Entry - Unlike SIPs, Lump sums or STPs, our algorithms have been trained to get the best possible entry for every monthly instalment. You buy funds at the lowest possible prices every time.

3. Intelligent Rebalancing - Using various inputs like PE ratio, PB ratio, Interest Rates, we have trained our algorithm to decide the most optimal asset allocation at any given point of time.

4. Intelligent Exit - What happens when you need your money back. Our rule-based exit strategy ensures that you sell at the highest possible prices.

End of the day, you are buying Mutual Funds. The fact is that your money never comes to Finpeg account. We act as mere intermediaries who will be investing on your behalf. All the mutual fund purchases will be made under your name and all the transactions will take place between you and the concerned AMC.

For us to be able to do investments directly on your behalf according to our algorithms, we obtain a bank mandate from you. This bank mandate that you issue is in favour of BSE Limited and not Finpeg thus never giving the control of your money to Finpeg We are never closing down. Period. And you are happy to visit our office anytime to meet us. We are here When you redeem, the entire redemption proceeds will be credited in your registered bank account (the one you registered while signing up). Similarly, all dividend proceeds are also credited into your registered bank account. We take the security of our platform and privacy of all your data extremely seriously. And therefore, we have built a system with best-in-class security and privacy features.

Hosted on Amazon Web Services, all sensitive client data is encrypted and stored with 256 bit SHA encryption. Furthermore, we have tied up with the Bombay Stock Exchange (BSE) as our backend partner and all the transactions are executed through BSE’s StarMF platform.

And finally, we will never share your data with any third party. For more details, please read our privacy policy. Great! Please leave your contact details over here and we promise one of us will call you up and help you understand everything.