Is Upwardly free? No, Upwardly is not free. It does charge a certain commission. But it doesn’t take a single rupee from its customers.
Who pays for you?
Upwardly earns through a commission from fund houses. From the expense ratio charged by the fund house a part of it is paid to distributors like Upwardly on a monthly basis. The expenses are deducted by fund houses on a daily basis. Net Asset Value (NAV) of a fund is calculated after deducting the expenses of the fund.
For example the expense ratio of a fund is 2.25% per year. The fund house deducts 0.0061% daily (2.25%/365 days). This 2.25% expense ratio includes management fee and operating expenses like registrar transfer agent fees, audit fee, custodian fee, distributor fees, and marketing fees.
Commissions vary from fund house to fund house. Distributors get around 1% commission annually for equity mutual funds and around 0.1% commission annually for debt mutual funds. But the payments are made to the distributors on a monthly basis. So fund houses pay Upwardly on a monthly basis.
For what are you paying Upwardly?
What Upwardly is charging is minimal when compared to the services provided by it. At Upwardly we don’t simplify investments but we simplify dreams. How distant or crazy one’s dream is we will help you convert it into a goal and give you an investment portfolio to achieve it. No money related dream is too big. All you have to do is to invest systematically in the right manner. We will support your dream by providing a personalized portfolio, monitoring it periodically and suggest changes as required.
Upwardly uses a time tested investment strategy which is profitable and secure best encryption protocols in the world. Investing with us is automated as we help you by monitoring 24/7 and rebalance your portfolio regularly based on market circumstances. Investing with us is very convenient as we are 100% online and there is zero paperwork and you can access your portfolio anywhere and anytime.
At Upwardly we use a methodology that one can bank on. We select funds using are algorithm. We shortlist funds based on their consistent returns and track record that have a reputable size and perform well in economic upturn or down turn. We offer lifelong monitoring and adjust your portfolio based on market conditions so that it can beat the markets performance.
It does take a lot of hard work to do what we do and we charge minimal for it.
How much is the distributor fees?
SEBI has banned up-front commissions so all a distributor gets is trail commission, i.e. monthly commission. The commission differs from fund house to fund house and fund to fund too. On an average a distributor gets around 1% commission on equity mutual funds, around 0.1% commission on debt mutual funds and around 0.6% for debt and equity funds.
For example, if one person invests Rs 1,50,000 lumpsum in equity mutual funds through Upwardly we get 1% annually or 0.083% monthly. That is Rs 125 monthly (Rs 1,500 annually). If the investor invests Rs 1,50,00 in a debt fund we get 0.1% annually (0.0083% monthly) which is Rs 12.5monthly (Rs 150 annually). If the investor invests Rs 1,50,000 in balanced funds we get 0.6% annually or 0.05% monthly. That is Rs 75 monthly (Rs 900 annually).
In case of SIP investment we get 0.6-0.8% commission. For an Rs 15000 SIP we get Rs 7.5 (0.6%/12 *Rs 15,000) for the first month and Rs 15 for the second month (on Rs 30,000 investment). So as the SIP investment rises the commission rises too.
*Actual fees are deducted daily and for convenience we have shown it monthly.
You can always pick direct mutual funds over regular funds from Upwardly if you think you can manage your own investments. For the rest of us there are platforms like Upwardly.
Upwardly is a very cost-effective platform and investing with us is not only easy but also profitable.
Achieve your dreams with Upwardly. Happy investing!