Do the fund only rebalance when any Asset weight increase or decrease by 5% or any other method ? Because I dont see any asset weight goes near 5 % increase or decrease.
Staggered approach always preferred unless you are investing for a very long period so current levels really dont matter.
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Hey Anup, not sure about this as the exchanges control this.
Yes, rebalancing is done only if any of the assets breach 5% allocation either side. Rgds
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Incase of fund inflow and outflow, where do the fund enter and exit ? Buy beaten down asset and sell grown asset or equal amount in all assets ?
Objective is to maintain the weights within the defined bands, so really depends on various factors such as flows, etc on the given day.
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@VishalJain
For Gold and silver ETFâs whatâs taken as the benchmark.
How is the benchmark price sourced/calculated? Can i see the benchmark price anywhere on daily basis
If IMPS is down, does it fail or switch to normal T+1?
Hi,
If the Instant redemption fails because IMPS is down, pls donât panic. Your units stay safe in your account and nothing is deducted.
Here is what happens next:
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Manual Switch: The system wonât switch you automatically because the limits and timings are different. You just need to go back and select the âNormalâ redemption option to get your money by the next business day (T+1).
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Monitoring: We have internal alerting systems in place that notify us immediately if our banking partners experience any downtime.
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Fast Resolution: As soon as an alert hits, our team works to expedite the issue with the bank so that the âInstantâ option is back up and running for you as quickly as possible.
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Does Zerodha do anything to help create market makers? For example, SILVERCASE is trading at a premium of 5-10% to itâs iNAV.
Does zerodha plan to build something for indian investors where they can buy gift city direct funds from Zerodha in USD? Many indians are employed with US based companies and hold ESOPs in fidelity/MS/Vanguard/Vested/IndMoney. Recently vested and IndMoney started allowing purchase of Regular Gift city funds(not Direct). This solves half the problem, users can transfer in US domiciled stocks/etfs to vested, sell them, have USD in the Vested/IndMoney account, and buy Regular funds.
Ask is can zerodha provide the following: Offer Gift city direct funds, allow Indians to import their USD assets into zerodha, sell them, and directly buy gift city funds using USD. This solves following problems: 1. need for USD to INR to USD conversion, 2. Flexibility to buy Direct Gift city funds instead of Regular funds. 3. Simple solution to escape from US Estate tax.
No one in the industry currently offers this. Vested and IndMoney solve half of this problem, but offer regular funds.
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FWIW, this âUS estate taxâ is typically a concern for portfolios exceeding 60,000 USD.
So not just MFs, but even SIF (and AIF) category of investments (if any offerred)
will likley be of interest to this class of investors to diversify their foreign assets.
If Iâm not mistaken, Repatriation and conversion of any income to INR is mandatory as per FEMA. Therefore, ESOPs do need to be converted to INR first. I assume this is done to prop up the rupee and help Indian banks profitability.
AFAIK, there is no universal consensus on this matter.
A pattern that i have observed is that folks who have much to lose (financially and otherwise),
are being conservative in this matter and repatriating, whereas others re-invest without repatriation by relying on one of the clauses of FEMA that mentions ârepatriation of uninvestedâ funds. Presumably to save on currency-conversion exchange-rates/fees and avoid friction due to TCS on LRS.
I have encountered convincing arguments (with respective references) on either approach.
Mildly suprising that noone has obtained a preemptive clarification and published it publicly. 
The law is vague for a reason(Like Tigerglobal for a recent case). Itâs so that the government can punish/ruin anyone it wants. Tax is more about power and control rather than helping the economy or the poor or anything else.
RBI FAQ does state that they can reinvest after selling. But this is for funds that is sent/invested via LRS. Not ESOPs as that is âincomeâ(at least that is my interpretation).
Even repatriation of âuninvestedâ is costly and usually not feasible. You canât buy(invest) for the exact amount that is sent via LRS. Youâll always have some funds lying around. If you repatriate it back, say 1$, youâll incur too much charges(around 20$) and furthermore, if broker charges something, you need to send it back again. RBI is given wide powers to punish and financially ruin someone(5000/day), if it wants to.
Vested allows sale in USD and reinvesting in USD. there is no forced conversion to INR. IndMoney must be the same. Not sure what FEMA says, but I guess these apps adhere to regulations, they removed all crypto related investment offerings on rbiâs ask. Here you go: Diversify Foreign ESOP and RSU Holdings with Vested Platform
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Right, and many software engineers hold esops much greater than 60K. There are two ways to buy foreign equity/debt without having to worry about estate tax: IBKR/Irish domiciled stuff and now GIFT.
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Hey Srinivas, yes were are evaluating GIFT City and hopefully by next FY we will have something. Rgds
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Thanks Vishal. Specifically, can you comment on these: 1. Does zerodha plan to offer irish domiciled etfs? 2. Import of US etfâs/stocks and direct USD investing without currency conversion? 3. Direct Gift city funds across fund houses on zerodha platform?
Hey Vishal, any update on this?