FAQs – Satco Wealth

What is the minimum amount to start a SIP?

It depends on the scheme. Many schemes accept SIPs from ₹100–₹500 a month; your RM will confirm the current minimum before you register.

Are mutual fund returns guaranteed?

No. Mutual funds are market-linked, so the value of your investment can go up or down. Choose schemes that match your goal, time horizon and comfort with risk.

Can I pause or stop my SIP?

Yes. Most AMCs let you pause or cancel a SIP. Cancelling stops future instalments but does not redeem the units you already hold, so please inform us before the next debit date.

How long does redemption take?

Proceeds are usually credited within a few working days, depending on the scheme type and the regulatory timeline; liquid funds are typically fastest.

How are mutual funds taxed?

Tax depends on the fund type and how long you hold it, and rules can change with each Budget. Our Tax Guide has the current summary.

What is NAV?

Net Asset Value is the per-unit value of a scheme, calculated every business day from the market value of its holdings minus expenses.

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What is the minimum investment?

SEBI sets the minimum at ₹50 lakh per client, which can be invested in cash or by transferring eligible securities. Accredited investors may have different thresholds.

What fees will I pay?

Portfolio managers may charge a fixed management fee, a performance-linked fee above a hurdle, or a mix, plus brokerage, custody and taxes. The complete fee schedule is disclosed in the agreement before you sign.

Can I withdraw money from my PMS?

Yes. Partial or full withdrawals are allowed as per the agreement, subject to the minimum balance. Exit loads, if any, are capped by SEBI and apply only in the early years.

How will I track performance?

You receive periodic statements from the portfolio manager and can see your holdings in your own demat account. We also review the portfolio with you at regular check-ins.

Can NRIs invest in PMS?

Many portfolio managers accept NRIs through NRE/NRO routes. Eligibility and documents vary, so we confirm this before onboarding.

Are PMS returns guaranteed?

No. PMS portfolios are market-linked and often concentrated, so they can fall more sharply than the broader market in a downturn.

How is PMS taxed?

Because you own the securities, each sale is taxed as capital gains in your hands, and dividends are taxed at your slab rate. Speak to your tax adviser about your situation.

Explore Portfolio Management Services (PMS)

What is the minimum investment in an AIF?

The minimum commitment is ₹1 crore per investor (₹25 lakh for employees or directors of the manager). Accredited investors may be eligible for lower thresholds.

Do I need a demat account?

Not always. Many AIFs issue units in statement form, although an increasing number now credit units to a demat account.

How are AIFs taxed?

Category I and II AIFs are tax pass-through: income is taxed in your hands as if you had earned it directly. Category III AIFs are taxed at the fund level, so distributions are generally received after tax.

Can I exit an AIF early?

Most AIFs are close-ended, so early exit is limited. Some open-ended Category III funds allow periodic redemptions with notice and exit loads.

What is a drawdown?

Instead of investing your full commitment upfront, the fund calls money in tranches as it finds opportunities. You need funds ready to meet each call on time.

What is a sponsor?

The sponsor sets up the AIF and, under SEBI rules, must keep its own money invested in the fund ("skin in the game").

Explore Alternative Investment Funds (AIF)

What is the minimum investment?

₹10 lakh across all SIF strategies of an AMC, at PAN level. Accredited investors are exempt from this threshold.

How is a SIF different from a mutual fund?

SIFs can take limited unhedged short positions through derivatives and follow more specialised strategies, so they carry higher and different risks than a typical mutual fund.

How is a SIF different from PMS?

A SIF is a pooled fund with a lower minimum and mutual fund-style taxation and reporting; a PMS is a separate portfolio held in your own demat account.

Can I redeem anytime?

It depends on the strategy. SIFs can be open-ended, close-ended or interval funds, with redemption frequency and notice periods set out in the offer document.

How are SIFs taxed?

SIFs are generally taxed like mutual fund schemes of the corresponding type. Confirm the treatment of a specific strategy with your tax adviser.

Explore Specialised Investment Funds (SIF)

Do I need a demat account?

Yes, for listed bonds and NCDs. RBI Floating Rate Savings Bonds are held in a bond ledger account instead.

Are bonds risk-free?

No. Corporate bonds carry credit risk (the issuer may default), and all bonds carry interest-rate risk: prices fall when interest rates rise. Government securities have the lowest credit risk.

How is bond interest taxed?

Interest is added to your income and taxed at your slab rate. Gains on sale are taxed as capital gains under current rules.

Can I sell before maturity?

Listed bonds can be sold on the exchange, but the price depends on demand and interest rates at the time, and some issues trade rarely.

What is yield to maturity?

YTM is the total annual return you earn if you buy at today's price and hold the bond until maturity, including all coupons.

What does a credit rating mean?

Rating agencies grade an issuer's ability to repay. Higher ratings mean lower default risk and usually lower interest.

Explore Bonds & NCDs

Is a corporate FD safe?

Corporate FDs are not market-linked, but they carry credit risk: if the issuer runs into trouble, payments can be delayed or lost. They are not covered by DICGC insurance, so prefer highly rated issuers and diversify.

Who can invest?

Resident individuals, HUFs, companies and trusts can invest. NRIs can invest in some deposits on a non-repatriable basis, subject to the issuer's terms.

What documents are needed?

PAN, KYC-compliant identity and address proof, bank details and a photograph. Most issuers now support paperless onboarding.

Can I withdraw before maturity?

Usually yes, after a minimum lock-in, but a lower interest rate or a penalty applies. Terms differ by issuer.

How is FD interest taxed?

Interest is taxed at your slab rate. TDS is deducted when interest crosses the yearly threshold; eligible investors can submit Form 15G or 15H.

What happens at maturity?

The principal and any unpaid interest are credited to your bank account, or reinvested if you opted for auto-renewal.

Explore Fixed Deposits

What do I need to start?

A PAN, completed KYC, a bank account and a demat-cum-trading account with a SEBI-registered stockbroker of your choice.

What is the difference between demat and trading accounts?

A trading account is used to place buy and sell orders; the demat account holds the shares you own.

How are stock gains taxed?

Gains on listed shares are taxed as short-term or long-term capital gains depending on how long you hold them, and dividends are taxed at your slab rate.

Can NRIs invest in Indian stocks?

Yes, through the Portfolio Investment Scheme (PIS) using NRE or NRO accounts, subject to RBI rules.

Does Satco Wealth offer broking?

No. Satco Wealth does not provide stock broking services and does not hold your funds or securities. Orders are executed by the stockbroker you choose.

Explore Stocks

How much can I invest abroad?

Resident individuals can remit up to USD 250,000 per financial year under the Liberalised Remittance Scheme (LRS) for permitted purposes, including investments.

What is TCS on foreign remittances?

Banks collect tax at source on LRS remittances above the annual threshold. TCS is not an extra tax: you can adjust it against your tax liability or claim a refund when you file your return.

How are foreign stocks taxed in India?

Gains are taxed as capital gains in India and dividends at your slab rate. Tax withheld abroad can usually be claimed as a credit under the relevant tax treaty.

Do I need to report foreign holdings?

Yes. Resident taxpayers must disclose foreign assets in Schedule FA of the income tax return, even if they earned no income from them.

Is there a minimum investment?

International mutual funds can start with small amounts, and many US investing platforms allow fractional shares.

Explore International Investments

Why invest through GIFT City instead of abroad?

You get global, USD-denominated products with Indian KYC, an Indian regulator and onshore servicing, often with favourable tax treatment for non-residents.

Can resident Indians invest?

Yes, through the Liberalised Remittance Scheme, within the annual limit and subject to TCS rules.

Do I need a separate bank account?

Many products need funding in USD through an IFSC bank account or an existing foreign-currency account; we guide you through the process.

Are returns guaranteed?

No. IFSC funds are market-linked and carry currency risk for investors who measure returns in rupees.

How are GIFT City investments taxed?

Several IFSC products offer tax exemptions to non-residents, while residents are generally taxed as for other foreign investments. Confirm the treatment of a specific product with your tax adviser.

Explore GIFT City Solutions

Why is risk profiling needed?

Distributors must recommend products that suit the investor. Your risk profile is the starting point for that suitability check, and it helps you avoid investments that could make you panic and sell at the wrong time.

Can my risk profile change?

Yes. A new job, marriage, children, an inheritance or nearing retirement can all change it. We suggest a review every year or after any major life event.

What if my goals need more risk than I am comfortable with?

We discuss the trade-off openly: extend the time frame, save more, or adjust the goal, rather than push you into risk you cannot hold through a downturn.

Is a higher-risk profile better?

No profile is better than another. The right one matches your situation and lets you stay invested through market cycles.

Is my information kept confidential?

Yes. Your answers are used only to advise you and are handled under our privacy policy.

Explore Risk Profiling

Why plan each goal separately?

Each goal has its own date and risk needs. Ring-fencing money for each one stops you dipping into, say, your child's education fund for something else, and makes progress easy to track.

What inflation should I assume?

We typically use about 6% for general expenses and higher rates for education and healthcare, which have historically risen faster. Your RM tailors the assumptions to you.

What if I start late?

Starting later means a higher monthly amount, a longer horizon or a revised target. A step-up SIP that rises with your income can help close the gap.

What happens as the goal date approaches?

We gradually move money from equity to debt in the final years, so a market fall just before the goal does not dent the amount you need.

Can I plan several goals at once?

Yes. We prioritise them, map each to its own investments and review them together every year.

Explore Goal Planning

Is the model mix fixed?

No. It is a starting point, adjusted for your goals, existing holdings, tax position and liquidity needs.

How often should I rebalance?

Usually once a year, or when any asset class drifts more than about 5 percentage points from its target.

Do hybrid funds help?

Balanced advantage and multi-asset funds rebalance inside the fund, which can be convenient and tax-efficient. We use them where they fit.

Where does real estate fit?

Property is usually a large, illiquid holding. We consider it in your overall wealth picture but keep the investable portfolio liquid.

Does asset allocation guarantee returns?

No. It manages risk and improves consistency, but all market-linked investments can lose value.

Explore Asset Allocation

How often should my portfolio be reviewed?

At least once a year, and after major life events or large market moves.

Will you ask me to sell everything?

No. We suggest changes only where there is a clear reason, after weighing exit loads and taxes. Often a few targeted changes are enough.

How do I get my Consolidated Account Statement?

Request it online from CAMS, KFintech, NSDL or CDSL using your PAN and registered email. Our team can guide you.

Do you review investments made elsewhere?

Yes. We review your complete portfolio, wherever it was bought.

How do I start?

Contact us to schedule a review and share your statement securely with your RM.

Explore Portfolio Review

Which regime should I choose?

If your deductions are small, the new regime usually costs less. If you claim large deductions, such as home loan interest, ₹1.5 lakh of investments, health insurance and NPS, the old regime may still be cheaper. Calculate both each year.

What changed with the Income-tax Act, 2025?

From 1 April 2026 the new Act replaced the 1961 Act. It uses a single "tax year" instead of previous year and assessment year and renumbers many sections, while slab rates for FY 2026-27 stayed the same.

How are SIP redemptions taxed?

Each SIP instalment counts as a separate purchase, so the holding period runs from each instalment date, on a first-in, first-out basis.

Is tax deducted when I redeem mutual funds?

For resident investors, no TDS is deducted on mutual fund capital gains; you pay tax when you file. For NRIs, TDS applies at the time of redemption.

Are mutual fund dividends taxable?

Yes. IDCW payouts are added to your income and taxed at your slab rate, with TDS above the yearly threshold.

Explore Tax Guide

Why buy term insurance early?

Premiums are fixed when you buy and rise with age and health conditions, so buying young locks in a lower premium for the whole term.

What is the free-look period?

After you receive the policy, you get a free-look period (currently 30 days for most policies) to review it and return it if it does not suit you.

Are premiums tax-deductible?

Premiums may qualify for deduction under Section 80C in the old tax regime, and benefits may be exempt under Section 10(10D), subject to conditions.

What happens if I miss a premium?

There is a grace period to pay. After that the policy may lapse, though most can be revived within the revival period by paying the dues and meeting health requirements.

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What is a waiting period?

Some conditions, especially pre-existing diseases, are covered only after a specified period from the policy start. Current IRDAI rules cap the pre-existing disease waiting period at 3 years.

What is cashless treatment?

At network hospitals, the insurer settles approved bills directly with the hospital, so you pay only non-covered expenses.

Can I port my policy to another insurer?

Yes. Portability lets you switch insurers at renewal while keeping credit for waiting periods already served.

Are premiums tax-deductible?

Premiums for yourself, your family and your parents may qualify for deduction under Section 80D in the old tax regime, within the prescribed limits.

Why disclose my medical history?

Full disclosure protects your claims. Non-disclosure is one of the most common reasons for claim rejection.

Explore Health Insurance

Is motor insurance compulsory?

Third-party motor insurance is mandatory for every vehicle on Indian roads. Comprehensive cover is optional but strongly recommended.

What is a deductible?

The part of each claim you bear yourself before the insurer pays. Opting for a higher voluntary deductible can lower your premium.

What is a No Claim Bonus?

A discount on your renewal premium for every claim-free year. It belongs to you and can move with you to a new vehicle or insurer.

Can tenants buy home insurance?

Yes. Tenants can insure the contents of their home even if they do not own the property.

How quickly are claims settled?

Timelines depend on the insurer and the claim. Filing complete, accurate information the first time helps avoid delays.

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Is a nominee the same as a legal heir?

Not always. For many assets, a nominee receives the asset on behalf of the legal heirs, and the will decides who finally owns it. You need both up to date.

Does a will need to be registered?

Registration is optional in India. A will is valid when it is in writing, signed by you and attested by two witnesses.

Can I change my will later?

Yes. You can revise your will as often as you like; the latest valid will prevails.

What is probate?

Court certification of a will. It is required in certain cases, for example for some wills relating to property in Mumbai, Kolkata and Chennai.

When should I set up a trust?

A trust helps when you want to control how and when beneficiaries receive assets, for instance for minor children or to protect family wealth.

Explore Will and Estate

How much can I borrow against mutual funds?

Lenders typically lend up to about 50% of the value of equity funds and up to about 80% of debt funds, depending on the scheme and the lender's policy.

Will my mutual fund units be sold?

No. The units are pledged (lien-marked) in favour of the lender and stay invested; they are released when you repay. If their value falls sharply, the lender may ask you to add collateral or reduce the loan.

Does Satco Wealth lend or arrange loans?

No. Satco Wealth is not a lender and does not arrange loans. This page is for information; please apply directly with a bank or NBFC of your choice.

Can I prepay my loan?

Most floating-rate loans to individuals can be prepaid without a penalty. Charges on fixed-rate and business loans vary by lender.

How does my credit score affect the loan?

A higher score usually means faster approval and better rates. We can help you understand your credit report before you apply.

How long does approval take?

Loans against securities can often be sanctioned within a day or two; home loans and loans against property take longer because of legal and technical checks.

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Can NRIs invest in Indian mutual funds?

Yes, through NRE or NRO accounts after completing KYC with overseas address details. Some AMCs have additional requirements for investors in the US and Canada, which we check for you.

Is tax deducted on NRI redemptions?

Yes. TDS applies to capital gains for NRIs at the applicable rates. You may claim relief under the tax treaty with your country of residence.

Can I complete KYC from abroad?

Yes. Many intermediaries support video KYC or attested documents sent from abroad.

What if I move back to India?

You must update your residential status with your bank, AMCs and depositories. We help you re-designate your accounts and holdings.

What is FATCA?

FATCA and CRS are global tax-reporting rules. Every investor declares their tax residency; NRIs and foreign tax residents provide additional details.

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Who can form an HUF?

A Hindu (including Jain, Sikh and Buddhist) family with at least two members can constitute an HUF, with the senior member acting as Karta.

How does an HUF get its funds?

Through ancestral property, gifts and income earned on the HUF's own assets. Income from assets you transfer to your own HUF may be clubbed with your income, so plan this carefully.

Can a woman be the Karta?

Courts have recognised that the senior-most coparcener, including a daughter, can act as Karta. Practice can vary, so take legal advice.

Can an HUF invest in mutual funds and shares?

Yes. Once the HUF has its own PAN, KYC and bank account, it can invest in mutual funds, shares, bonds and fixed deposits.

How is an HUF dissolved?

Through a total partition among the coparceners, with the assets divided and the tax authorities informed.

Explore HUF Formation

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