Investool

The Concept



Investools allocate your savings into different assets depending on market valuation. It helps you to decide all the three issues that faces an investor:

1. What to invest in: Product selection.
There are hundreds of investment products. Which are ones where you should put your money at a particular time? The tool will advise you.

2. How much to invest in: Asset allocation.
It's not enough to know which are the right products. You need to know how much to invest in which products. This is will make the biggest difference to your investment outcome

3. When to invest: Market-timing:
While investing regularly in fixed income products is fine, investing the same amount regularly in market-linked products may not be the best strategy. With Investools, you can buy more when the market is down and less and when the market is up.

How does the Long-term Investool work?

1. The tool will suggest monthly investment of your surplus into fixed income products and equity funds

2. When the market valuation is low the tool will suggest a lower investment in fixed income part and higher investment in the equity funds

3. When the market valuation is high the tool will suggest a higher investment in fixed income part and lower investment in the equity funds

4. When the market valuation is low again, the tool will ask you to catch up with the previous periods of low equity investment by shifting part of the money already invested in fixed income into equity funds

5. When the market valuation is extremely high, the tool may ask you to sell your equity funds

6. Allocation to stocks is based on the prospects of individual stocks and is independent of market valuation

To know of the current asset allocation and market valuation zone, check out the InvesTools


How does the Short-term Investool work?

For short-term investments , you need to protect your capital. All products that are market-linked are unsafe for short-term investments. Which products are market-linked?

For medium-term investments (3-5 years), the objective is try to earn a slightly higher return than safe products like bank FDs and save on taxes if possible. Don't make the mistake of investing in long-term products (shares) for the short-term or safe products for the long-term (bank FDs)

Use this tool for investing for periods between 0-5 years. While most of the suggested investments would be in fixed income, we add a dash of equity when the time is right.

This is a premium feature

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InvesTool FAQ
-What are InvesTools?
You earn money, spend and save for future. Naturally you wish your savings were invested systematically. It means taking three three key decisions:
- What to invest in?
- How much to invest in?
- When to invest?
Along the way, you will get answers to a few basic questions, that we all have at the back of our mind but don't know whom to ask. These could be
- Am I saving enough of my income?
- Am invested in the right financial products?
- Have I saved up enough of money so far in the right way?
InvesTools is backed by a deep research on financial products for which Moneylife has acquired a huge reputation. Since we do not sell any product, our conclusions are unbiased.
+What are the core benefits and features of InvesTools?
+What financial objectives are met by using the InvesTools?
+How are the tools unique?
+Is there a time horizon for the investments suggested?
+What are the products do the tools recommend?
+Is it tedious to work with InvesTools?
+Will the InvesTools be useful for both husband and wife both?
+How are the InvesTools different from tools of other companies?
+Can we buy and sell from the InvesTool?
+Can I add additional information to the InvesTool?
+How do I access the tool?

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Changes in Our Business Model
 
 
Greetings from Moneylife Advisory Services
 
Between financial years 2019-21, SEBI has come up with extensive changes to investor advisor regulations. On Sep 23, 2020, SEBI had issued new additional guidelines. This comes just two months after extensive changes announced in July 2020. Earlier, in December 2019 there was an ad hoc circular
 
As a result of these changes, IAs, cannot accept fees through credit cards, will have to sign a 26-clause investor agreement, have to maintain physical record written & signed by client, telephone recording, emails, SMS messages and any other legally verifiable record for five years. IAs were already asked to record the suitability and rationale for every piece of advice given, sign them and store them for five years.
 
While these extensive and frequent changes, designed to strengthen the conduct of IAs are well-meaning, these have sharply increased compliance efforts and cost. We, being online advisors, find many of changes harder to implement, compared to advisors working in the physical space. We will have to have an army of advisors, administrative and tech staff to be compliant. If we do this, we will have to divert money to these areas and the cost of our service will double. We want to remain the least-cost service in the market to benefit more and more people. In the circumstances, we are forced to change our business model from “advisory” to “research”. This will mean the following:
 
What remains the same:
  • Recommendations on insurance, investment and Lion stocks, will continue as a part of the MAS premium subscription. Our strength has always been research and this will remain available to you through our recommendations.
  • The magazine and all textual content will remain as part of the service
  • The investools will have to be reworked and will offer model portfolios. We will have to suspend the restructuring tool.
 
What changes:
  • The interactions in Ask / Handholding will offer investment advice but not specific to your situation. It will offer information on investment products and also clarify your doubts about various financial products. It will be a forum for information, not for advice. This will be implemented with immediate effect and our guidelines in Ask, reflect this now.
 
Over the next few weeks our site and our communication to you will reflect these and other additional changes.
 
We feel this will not affect you much in terms of what really matters in investing: knowing what to buy and when to buy. This is our edge and it will still be available to you.
 
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Debashis Basu
Founder