Explainer | What is WealthDesk, and how to invest using the platform?

There are currently 25+ advisory and broking partners offering advised investment portfolios consisting of Direct Stocks and ETFs through this platform.

January 20, 2021 / 03:41 PM IST

Mumbai-based WealthDesk has built a Platform ecosystem that aggregates advised investment products consisting of Direct Equities and ETFs in the form of WealthBaskets and makes them accessible to retail investors at scale.

Each WealthBasket is a research-backed portfolio of stocks or ETFs built around a theme, strategy, goal, or risk-return objective. Originating from the best quantitative and qualitative research from top RIAs, PMSs, RAs, FSBs, these advised investment products have generated better than market returns for retail investors at lower cost.

How WealthDesk works

WealthDesk allows investors to use their existing broking account to subscribe or invest in an advised portfolio (a set of tradable Stocks or ETFs).

Investors can now track their portfolio's performance and approve/reject the periodic changes recommended by the portfolio-advisor.

To use the platform, follow these steps:

-Go to WealthDesk website and sign in with your broking account. If you are new-to-market, you can sign up directly with WealthDesk and select a broking partner at the time of ordering or subscription.

-After login, build your investor risk profile to explore curated WealthBaskets based on different strategy models and themes (long-term/short-term/technical/thematic/sectoral/smart-beta/model-based). Some brokers also offer exclusive portfolios to account holders. Choose one to see stocks that form the portfolio, their weightage, and the rationale for their inclusion.

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For example, this WealthBasket, titled OpenQ Make in India, has stocks that are well placed to benefit from the long-term theme of promoting manufacturing in India. Source: https://wealthdesk.in/fund-details/OpenQMakeInIndia, SEBI Registered Investment Advisor: Quantech Capital

-Once you choose a WealthBasket, you need to pay a small advisory fee after you have agreed to the terms and conditions of the SEBI registered advisor/research analyst that has created the WealthBasket. Once that is paid, you will see the individual stock units and their respective prices.. Post advisory fee payment, the platform via integrated broking, places a standard market order for the portfolio's stocks that execute over multiple trades.

- An advisor constantly monitors their WealthBaskets. As per changing business or market conditions or investment strategy of the advisor, composition or weights of the stocks in portfolio change. Whenever the underlying WealthBasket changes, a request to approve/reject changes to your portfolio appears in your WealthDesk account. Upon approval, the platform places buy and sell orders through your Broker to rebalance your portfolio as advised.

- If some orders are not executed due to exchange or broker rejections, they will move to the rejected list. The user can retry rejected orders then or later to ensure the stocks in his/her WealthBasket match the advised portfolio.

Charges:

A small advisory and management fee to the advisor paid once semi-annually/quarterly.

Advisory or Subscription fee charged by the SEBI registered Entity will be as per the strategy (long-term/short- term/technical/thematic/sectoral/smart-beta/model-based). It can be as low as Rs 50 for a 10,000 rupee investment.

Standard brokerage as per your Broker and other exchange charges for buying and selling stocks or ETFs will be deducted for every order.

Why you should go the WealthDesk route

Value-driven Pricing

Equity Funds charge a high (0.5-2.25% of investment) expense ratio. This charge includes fund manager fees, distributor commission, and other expenses. In the case of a WealthBasket, the investor pays a small advisory fee based on the applied strategy model and a brokerage on actual equity purchase orders.

DIY-friendly

WealthBaskets allow you to invest in ideas/themes that excite you for achieving both long-term and short-term investment objectives. These professionally tailored products built-on deep research and analysis of a potential theme/idea can de-risk DIY investing. For example, a Digital India WealthBasket lets you invest in firms that are likely to benefit from the government's digital push.

Faster Redemption

WealthBasket investments are more liquid compared to MFs. MF Redemption requests typically take three working days to get processed. In contrast, WealthBasket securities live in the investor's Demat account and are redeemable immediately. Dividends come directly into your bank account.

Disclaimer: WealthDesk platform is only an aggregator of professionally advised investment products, termed WealthBaskets. The WealthBaskets (portfolios) are created and managed by SEBI Registered Investment Advisors and Research Analysts and are available for subscription (purchase) via the platform.

 

This is a partnered post.

 
first published: Jan 19, 2021 10:03 pm
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