Q: What if I close my account before the anniversary date?
A: In case of full withdrawal or closure before the anniversary date, the advisory fee is refunded on a pro-rata basis, calculated from the termination date to the next anniversary, based on the initial capital (not the current market value). In such cases 1.50% fee shall be charged from the activation date till date of closure and balance will be refunded to you.
Fee illustration
Computing the fee on percentage of AUA basis has been explained below:
FEE ILLUSTRATION
| Scenario 1 | Scenario 2 | Scenario 3 |
Initial Investment (on 31st Dec)
| 5,00,000 | 5,00,000 | 5,00,000 |
Account opening charges (one time inclusive of GST)
| 750 | 750 | 750 |
Advisory fee @ 1.50% (collected in advance)
| 7,500 | 7,500 | 7,500 |
GST on Fees 18%
| 1,350 | 1,350 | 1,350 |
Total amount to be paid during account activation
| 9,600 | 9,600 | 9,600 |
Top up during the Year (on 1st June)
| 25,000 | 45,000 | 1,50,000 |
Withdrawals during the Year
|
| 30,000 | 1,10,000 |
Net contribution (Initial + Top up - Withdrawal)
| 5,25,000 | 5,15,000 | 5,40,000 |
Advisory fee @ 1.50% on top up ( 1st June to 31st Dec) on pro-rata basis until the account anniversary date for aggregate value of
top-ups exceeding ₹ 1,00,000.
| - | - | 1,313 |
GST on Top-up 18%
| - | - | 236 |
Total amount to be paid during top up
| - | - | 1,549 |
Portfolio value (AUA) on account anniversary date
| 5,50,000 | 6,35,000 | 7,50,000 |
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| Fee computation methodology for subsequent year |
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Capital base reset as per AUA on account anniversary date
| 5,50,000 | 6,35,000 | 7,50,000 |
Advisory Fee @ 1.50% for the Next Year
| 8,250 | 9,525 | 11,250 |
GST on Fees 18%
| 1,485 | 1,715 | 2,025 |
Net Fee due for 2nd year
| 9,735 | 11,240 | 13,275 |
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Advisory fees will be charged on the account anniversary date
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Q: Can you give examples of how fees are calculated?
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