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What is a Company Fixed Deposit?

Company Fixed Deposit is the deposit placed by investors with companies for a fixed term, carrying a prescribed interest rate for the tenure opted.

What things to keep in mind while choosing Company Fixed Deposit?

Issuer Credit rating, Issuer background and re-payment history.

What is interest payment options?

Interest is paid on monthly/quarterly/half yearly/yearly or on maturity basis.

What is cumulative option & non-cumulative option?

In cumulative option interest is payable on maturity & in non-cumulative option interest is paid on periodical basis.

What are bonds?

A bond is a fixed income instrument that represents an obligation made by a borrower (bond issuer) to an investor (bond holder)

How to choose a bond to invest?

Minimum Investment Amount
Minimum investment amount typically starts at INR 10,00,000 depending on instrument

Maturity Date
Repayment of principal of the loan at the end of tenure, along with Interest paid periodically or at the end of tenure

Coupon rate
Coupon rate is the periodic interest paid by the bond issuer to the bond holder for fixed rate of interest at pre defined intervals

Credit Rating
A measure of issuers’ ability to meet the obligation towards interest and principal repayment. Ranges from AAA (being the safest) to D (standing for default)
Government backed securities are rated ‘Sovereign’

How to invest in Bonds?

It is mandatory to have a Demat account to buy bonds. Either you can use your existing demat account, or if you don’t have a demat account, then we will assist you to open one.

How is Corporate FD or Bond taxed?

Interest income is usually taxed under other income as per tax slab. Further, bonds might have a component of capital gains applicable in certain cases.

Tailwind Financial Services Pvt Ltd is not qualified to provide tax advice and the above should not read as tax advice. There may be many exceptions to the generalisation stated above, so please be sure to consult with your tax advisor and accountant before making an investment.

Who can invest in a Corporate FD or Bond?

Usually all resident Indians are eligible to invest. There are certain instrument specific restrictions in case of NRIs.

Is there a minimum amount that I need to invest?

No. Unlike most traditional investing platforms, we place no restrictions on user accounts. There is no account minimum for investment through us. That said, in order to see benefits of investing accrue to you, we recommend that you invest at least INR 7,000 or $100 to start off.

How does it work?

Tailwind enables you to access international markets and diversify your portfolio globally. When you create an account, your brokerage account is, in turn, automatically created with DriveWealth – the US partner for clearing and brokerage services. It will take 2 business days for your account to get approved. Once approved, you will have to fund the account by transferring money into the brokerage account from your bank account.
Once the funds become available in your brokerage account, you will be able to make investments on the portal. Feel free to use the extensive research and support available on the platform.
After selling any of your investments, you can click on “Withdraw” to transfer funds back into your account to get your money back. When you begin the withdrawal process, all your available cash will be sent over to your domestic bank account

How do I withdraw my funds?

All you need to do is select the “Funds” button on your homepage page and then click on “Withdraw Funds”.
You will be shown how much money is available for you to withdraw. This is the “cash” in your account – either un-invested money or generated from sales of securities you, previously, owned. You can place a withdrawal request and the money will be wired to your domestic bank account. It takes 4-5 business days for the money to hit your account. You can only Withdraw funds to your default bank account which was added during fund transfer.
There is a $10 fee associated with withdrawals, charged by the US bank, and thus, the cash balance in your account should be at least $10 at the time of placing the withdrawal request. Any request above $20,000 requires an additional email approval.

How much can I invest in US stocks from India?

Currently, you can invest up to USD 250,000 every year in foreign stocks from India. This amount can change, subject to RBI guidelines. So your investments in US securities are also governed by the same limit.
Foreign investments fall under clearly defined RBI guidelines. The remittance of money for foreign investments comes under the Liberalized Remittance Scheme (LRS). Under LRS an Individual can remit up to USD 250,000 per financial year to invest in foreign equities done through an authorized dealer (commonly, your bank). As per the RBI policy, having a PAN card is required to purchase shares in foreign countries. You can find more information on the LRS scheme on the RBI website here.

What are the documents required to create an account on the platform?

We require KYC documents to establish the identity of the user via picture ID and proof of address. You can either choose to upload your documents via your laptop or complete the process on your smartphone after scanning the QR code on the page.
Any one of the following documents for a combination of identity and proof of address are required:

From India

ID Proof:
Aadhar Card (front+back)
PAN Card (front+back)
Voters ID (front+back)
Passport (picture)

Proof of address:
Aadhar Card (front+back)
Voters ID (front+back)

International Customers:

ID Proof:
Resident Permit (front & back)
National ID (front & back)
Passport (with photo)
Drivers License (front & back)

Proof of address:
Resident Permit (front & back)
National ID (front & back)
Drivers License (front & back)
Utility bill

Please note: Scanned copies and PDFs cannot be uploaded, please upload the photo of the document PNG/JPG format only.

How long does it take to open an account?

It takes only 1-2 business days to get your account opened.

What are Stacks?

Stacks are pre-configured baskets of stocks & ETFs that you can invest in with a single click. We aim to solve the challenge of “what to invest” with curated ready-made portfolios that are centered around an idea or a theme. Each stack is developed by leading financial experts to match different investment strategies, risk-tolerance, and investing goals.

What is Fees & Pricing for Stacks?

Each Stack has an “AUM Fee” which is computed as a percentage of the investment amount. The AUM fee can range from 1% to 2% of the investment amount – and is charged on a periodic basis (monthly, quarterly, or annually).

What Tax-support is provided?

Support and functionality to manage your local tax filing requirements.

What is Portfolio Management Services? What are the different types of PMS investments?

Portfolio Management Services is a professional service that’s offered by specialised managers registered with SEBI. It is a management service where experienced fund managers and stock market professionals are assigned to you to monitor your investment portfolio and make the necessary changes required to ensure that your investments provide you with the expected returns. PMS targets to maximize returns for a given market risk. There are two different types that are typically offered – discretionary PMS and non-discretionary PMS.

What is the difference between discretionary portfolio management service and non-discretionary portfolio management service?

In discretionary portfolio management services, the professional in-charge of an investment portfolio manages the funds and securities independently without the involvement of the client.

In a non-discretionary portfolio management service, the professional in-charge of an investment portfolio manages the funds and securities according to the client’s directions and input.

Who is an ideal PMS investor?

Individuals and corporate entities with a high net-worth, who are looking for customized investment solutions that are designed to satisfy their needs and requirements are ideal PMS investors.

What is the minimum and maximum investment that can be made in a PMS?

While each fund house can define minimum investment amount that they require, SEBI mandate is a minimum of INR 50 lakhs
There is no maximum limit to the investment that you can make in a particular PMS

How is Portfolio Management Services taxed?

All holdings in a PMS are held in the name of the investor and hence taxed same as other financial investments made by the investor

Tailwind Financial Services Pvt Ltd is not qualified to provide tax advice and the above should not read as tax advice. There may be many exceptions to the generalisation stated above, so please be sure to consult with your tax advisor and accountant before making an investment.

What are the paperwork and documents needed to open a PMS account?

Each fund house offering a PMS has their own process, however as a general practice you would need to sign the PMS agreement, power of attorney agreement, a new demat account open form and produce documents such as PAN card, Identity proof and address proof. However, this would vary subject to fund specific requirements

How is Alternative Investment Fund (AIF) different from PMS and MF?

AIFs combine the operational ease of a mutual fund (pool based investing) and the flexibility of a PMS making it a blend geared for generating optimum performance for a stipulated investment objective.

What is the minimum and maximum ticket size for an investor to invest in any Alternative Investment Fund (AIF) scheme?

While each fund house can define minimum investment amount that they require, SEBI mandate is a minimum of INR 1 crores (in most types of AIFs)

There is no maximum limit to the investment that you can make in a particular AIF

How is an AIF investment taxed?

AIF taxation is specific to the structuring and may be either at the fund level (where it is will distributed post tax to investors) or in hands of investor (where investor specific taxation will be applicable)

Tailwind Financial Services Pvt Ltd is not qualified to provide tax advice and the above should not read as tax advice. There may be many exceptions to the generalisation stated above, so please be sure to consult with your tax advisor and accountant before making an investment.

Is demat account necessary to invest in an AIF?

No, demat is not required.

Who can invest in an AIF or a PMS?

Usually all resident Indians are eligible to invest in any AIF / PMS. There are certain scheme specific restrictions in case of NRI or Foreign entities.

Who can invest in India?

Our investments in India are through a syndicate model in an AIF Category I (Angel Fund) and eligibility for it is:

Indian residents who qualify as an Eligible Angel Investor.
Trusts are not eligible to invest
Non Indians from neighbouring countries require a NRO account

How do Indians qualify as an Eligible Angel Investor?

You need to meet one of the following requirements:

an individual investor who has net tangible assets of at least INR 2 crore excluding value of his / her principal residence, and who has early stage investment experience, or
has experience as a serial entrepreneur, or
is a senior management professional with at least 10 years of experience.
a partnership firm with each partner having net tangible assets of at least INR 2 crore excluding value of his / her principal residence
a body corporate / HUF with a net worth of at least INR 10 crore
an AIF (Alternative Investment Fund) registered under SEBI AIF Regulations, 2012 or a Venture Capital Fund (VCF) registered under the SEBI (Venture Capital Funds) Regulations, 1996

What are the tax implications of investing through AngelList India’s AIF-regulated “Angel Fund”?

At the time of making an investment, the angel investor becomes part of an Angel Fund, which is registered with SEBI under the AIF Regulations. Under the (Indian) Income-tax Act, 1961. Angel Funds have been accorded pass through status in respect of all incomes (except business income), i.e. investors are subject to tax as if they had directly invested in the portfolio companies. There is a 10% withholding at the time of making payments to investors, which the investors can claim credit for while filing their returns.

What are the Indian tax implications for non-Indian investors?

For non-Indian investors, at the time of exit, the purchaser may withhold taxes on the amount of gains and the SPV will file taxes on its returns of income in India.
Tailwind Financial Services Pvt Ltd is not qualified to provide tax advice and the above should not read as tax advice. There are many exceptions to the generalisation stated above, so please be sure to consult with your tax advisor and accountant before making an investment.

Will Indian investors be able to invest into US syndicates?

Yes, but the bar for accreditation for US syndicates is slightly higher. Individuals are required to have a net worth of at least $1,000,000, excluding the value of one’s primary residence, or have an income of at least $200,000 each year for the last two years.

How are Syndicates different to investing directly into the company?

Tailwind gets carry for our syndicated investments. This allows us to leverage their deal flow by earning upto 20% carry on the allocation being shared with our backing investors.

Investors can participate in syndicates with lower minimums. They get access to lead’s deals and benefit from their experience in picking and managing investments. These deals will be typically hard to access for someone who hasn’t spent considerable time in building deal flow.

Startups get more capital with a single cap-table entry.

What are the limits to keep in mind while investing in syndicate through India based Angel Funds?

Investors will be required to meet the minimum threshold of investing INR 25 Lakhs over a period of 5 years from the time of making their first investment with the respective Angel Fund. This can be in a single investment or over multiple investments.

Generally, it is recommended to make multiple investments to have a portfolio of startups that will help in diversifying risk associated with startup investing.

How often can investors expect an update on investments?

Companies may or may not choose to provide any information about performance on regular basis.

Investors will be getting a statement of report on their unit holdings annually. This will be provided by a third party.

Is there any added benefit of raising through Angel Fund in India?

Raising through an Angel Fund benefits the company since the company is exempt from the Indian “Angel Tax” which could otherwise apply in certain situations if the Angel Investor had invested directly into the company.

The Indian “Angel Tax” is levied on the portfolio company on the capital invested, if it receives funding at a valuation, which is more than the fair market valuation derived as per the Indian Income tax rules and will be forcefully treated as income.