Hedg

General FAQs

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Wealth management is a comprehensive professional service that provides affluent individuals, families, and businesses with financial planning, investment management, and other specialized services. The objective of wealth management is to optimize the client's financial situation by integrating various financial disciplines and creating a customized strategy to achieve their financial goals.

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Wealth managers are professionals with specialized knowledge and experience in financial planning, investment management, tax planning, and other financial disciplines and can create a customized financial plan as per client’s requirements.

Wealth Managers offer numerous benefits to clients, including expertise, tailored advice, accountability, time-saving, and peace of mind.

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Failing to set clear financial goals and create a comprehensive financial plan is a common mistake in wealth management.
Making hasty investment decisions based on emotions rather than logic and research is another mistake.
Overlooking the importance of diversification and over-reliance on a single investment or asset class is a common mistake.
Lack of periodic review and adjustment of investments and portfolios can result in underperformance or overexposure to risks.
Not understanding the impact of taxes and fees can significantly reduce investment returns.

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Yes, NRIs can invest through Hedg, however investment eligibility for NRI clients is subject to certain conditions that depend on their domicile and the nature of repatriability. While NRI clients are eligible to invest, meeting these specific conditions may be necessary.

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There are several occasions when it is beneficial to seek the advice of a wealth manager. Here are some examples:

Investment Planning: If you are new to investing or have a large sum of money to invest, a wealth manager can help you design an investment portfolio that aligns with your financial goals, risk tolerance, and time horizon

Tax Planning: Tax laws are complex and constantly changing. A wealth manager can help you navigate the tax system, identify tax-saving opportunities, and develop a tax-efficient investment strategy.

Retirement Planning: Planning for retirement involves making critical decisions about Social Security, pension plans, savings, and investments. A wealth manager can help you create a retirement plan that meets your income needs and ensures long-term financial security.

Estate Planning: If you have a substantial estate, a wealth manager can help you develop an estate plan that minimizes taxes, ensures your assets are distributed according to your wishes, and protects your loved ones.

Asset & Inventory Financing

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Inventory financing offers a short-term financial fix where businesses use their inventory as collateral. Loan providers determine a funding percentage based on this inventory and give out loans. This is key for businesses that handle sizable amounts of inventory. Based on the company's inventory, the interest rate and loan amount vary with each lender.

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Inventory loan
Inventory line of credit

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Here are some common qualifying conditions for securing inventory financing loans:

Candidates must not have a history of credit defaults with any financial institution.
The business must remain open and operating in the same geographical distribution for at least a year.
A sizeable yearly turnover rate (the precise amount may differ depending on the lending institution)
Businesses submitting applications ought to have a strong credit standing.
The company needs to have a consistent track record of profitable sales.

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As part of the financing arrangement, the inventory is used as collateral. As long as inventory prices are reasonably stable, financing can account for up to 70% of inventory values. Financing inventory can come at a very high cost, up to 6% above the prime lending rate.

Startup Funding

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Self-Funding: Using personal savings or resources to finance the business.
Angel Investors: Individuals who invest their own money in exchange for equity in a startup.
Venture Capital: Funds managed by firms that invest in high-growth potential startups, often taking equity stakes.
Crowdfunding: Raising funds from a large number of people, typically online.
Small Business Loans: Loans from banks or financial institutions specifically designed for small businesses.
Grants and Subsidies: Financial assistance from government or other organizations.

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Create a detailed business plan that outlines your startup's financial projections and funding requirements.
Identify all startup costs, including development, marketing, operations, and salaries.
Consider your growth plans and how much capital you'll need to achieve your goals.

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Pre-Seed: Initial funding to validate a business idea and develop a minimum viable product (MVP).
Seed: Funding to launch the business, develop a product, and begin marketing efforts.
Series A: Funding to scale the business, expand operations, and build a team.
Series B and beyond: Funding for continued growth, market expansion, and potentially an IPO.

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Poor Business Plan
Over-Promising
Lack of Transparency
Not Understanding Your Audience
Ignoring Feedback

Due Diligence

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Due diligence is a thorough examination or investigation conducted before entering into a business transaction, such as a merger, acquisition, or investment.

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Risk Mitigation: It helps identify and assess potential risks associated with a transaction, allowing for proactive measures to mitigate them.
Informed Decision-Making: By providing a comprehensive understanding of the target company or asset, due diligence enables investors or buyers to make informed decisions.
Legal Compliance: It ensures compliance with legal and regulatory requirements, minimizing the risk of non-compliance issues.

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Planning:Define the scope and objectives of the due diligence process, including the specific areas to be reviewed.
Information Gathering: Collect relevant documents, data, and information from various sources.
Review and Analysis: Analyze the gathered information to identify potential risks and issues.
Documentation: Document all findings and conclusions in a clear and concise manner.
Reporting:Prepare a comprehensive report summarizing the findings and recommendations.

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Financial statements, accounts, tax returns, assets and budget statements
Legal agreements, contracts, disputes, patents, trademarks and licenses
Corporate structure, governance, board members and board meeting minutes
Market share and position, competitors, products and services
Employee information, remuneration and benefits, organisational structure

Pre-IPO Investment

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Pre-IPO shares refer to shares of privately-held companies that are “late stage”, meaning they have reached a size where they would commonly pursue a liquidity event, such as a company sale or an IPO.. These shares are typically purchased in “secondary” transactions from existing shareholders, such as employees, early investors, or venture capitalists, rather than directly from the company itself (referred to as a “primary” transaction.

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Research and due diligence
Accreditation and verification
Placing a bid or offer
Executing the transaction

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Risk and illiquidity
Financial stability of the company
Lock-up periods
Diversification
Legal and tax implications

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Potential for high returns
Access to promising companies
Possibility of preferential treatment
Diversification of investment portfolio

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Lack of liquidity
Lock-up periods
Dilution and ownership rights
Limited information and transparency
Higher risk of failure
Uncertain valuation

Real Estate

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Residential: Single-family homes, apartments, and townhouses.
Commercial: Office buildings, retail spaces, and industrial properties.
Mixed-use: Properties that combine residential and commercial spaces.

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Location
Property type
Financial capacity
Market conditions

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Research:Thoroughly research the market and identify promising areas.
Network:Connect with real estate professionals, investors, and property managers.
Due diligence:Carefully inspect properties and conduct legal and financial checks.

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Market fluctuations:Real estate values can decline, impacting your investment.
Vacancy and rental income risks:Properties may remain vacant or generate lower income than expected.
Maintenance and repair costs:Unexpected repairs and maintenance can be costly.

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Property management: Consider hiring a property manager to handle day-to-day operations.
Financial planning: Track your income and expenses, and develop a budget.
Legal compliance: Ensure you are following all relevant laws and regulations.

What are the tax implications of real estate investment in India?

Capital gains tax:Profits from the sale of property are subject to capital gains tax.
Income tax:Rental income is taxable.
Property tax: You will need to pay property tax on the property you own.

PMS

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Portfolio Management Services (PMS), service offered by the Portfolio Manager, is an investment portfolio in stocks, fixed income, debt, cash, structured products and other individual securities, managed by a professional money manager that can potentially be tailored to meet specific investment objectives. When you invest in PMS, you own individual securities unlike a mutual fund investor, who owns units of the fund.

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Discretionary : Under these services, the choice as well as the timings of the investment decisions rest solely with the portfolio manager.

Non-Discretionary: Under these services, the portfolio manager only suggests the investment ideas. The choice as well as the timings of the investment decisions rest solely with the Investor. However the execution of trade is done by the portfolio manager.

Advisory: Advisory as the name suggests involves advising the client on managing the investments. The client manages his own portfolio while the fund manager plays the role of an advisor only.

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Professional Management: The service provides professional management of portfolios with the objective of delivering consistent long-term performance while controlling risk.

Continuous Monitoring: It is important to recognise that portfolios need to be constantly monitored and periodic changes made to optimise the results.

Hassle Free Operation: Portfolio Management Service provider gives the client a customised service. The company takes care of all the administrative aspects of the client's portfolio with a periodic reporting (usually daily) on the overall status of the portfolio and performance.

Flexibility: The Portfolio Manager has fair amount of flexibility in terms of holding cash (can go up to 100% also depending on the market conditions). He can create a reasonable concentration in the investor portfolios by investing disproportionate amounts in favour of compelling opportunities.

Transparency: PMS provide comprehensive communications and performance reporting. Investors will get regular statements and updates from the entity.

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As per SEBI guidelines, a portfolio manager cannot give any guarantee towards achieving any specific returns. However, with a calculated risk and keeping downside protection in mind, we will endeavour to outperform the returns provided by the relevant benchmark index.

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Backed with a strong research team, we have a competent, experienced fund manager with more than 10 years of experience in the industry and capital market to manage the funds.

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An individual
HUF
Body Corporate
Non-resident Indian (subject to certain conditions)

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Under discretionary portfolio management services, the investor can mention specific needs (like sector restrictions) which the fund manager will keep in mind while investing your funds. However, the sole authority of investment decisions will be with the portfolio manage

Wealth Management

General FAQs

Asset & Inventory Financing

Startup Funding

Due Diligence

Pre-IPO Investment

Real Estate

PMS

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