I recently came across Scripbox when one of my colleagues shared an interesting blog post of theirs. Scripbox is an investing platform which allows one to easily invest in Mutual Funds. Personally, I have been investing in some funds to get some tax advantage (ELSS Funds) through an independent fund manager. For first few investments I took his advice, though it wasn’t bad, later I realised I could have done better had I done my own research. It’s also a general mistake we all do, we do more research on a phone or TV we are going to buy than on a fund we are suggested to invest in. Later being more important in life.
But doing research on funds isn’t easy. It’s volatile, it keeps changing, funds which are doing great this year may not do well next year & people suggest to do long term investment. For a passive investor like me, it’s a lot of work & very easy to get carried away with same funds forever. This is where Scripbox makes life easier.
How It Works:
Scripbox uses some known methodologies & some proprietary algorithms to shortlist funds which have higher probability of giving an expected return/performance. Scripbox then simplifies this by selecting top two funds in each category (Mutual Funds, ELSS, Debt Funds). They are open enough to publicly post their selections & also past performance of their selection for your reference.
Ease of use:
Traditionally, we invest through a fund manager, either in the funds of our choice or whatever they suggest. One problem with that is, you got to call them for everything. Whether you want to increase/modify/withdraw your investment or even stop your SIP. All this also involve paper work, cancelled cheques etc. With Scripbox, paperwork is one time & rest is in your hands. You can do all the above mentioned tasks with a mouse click. Some of the tedious processes implemented to be one-click in Scripbox are:
Change Plan: Allows you to change your SIP, skip a monthly investment, pause..etc
Change Portfolio: Allows you to change the funds you are invested in within the selected funds. This will automatically change your future SIP instalments (standing instructions) to get invested in the new fund you choose.
Rebalance: When one of your old funds stop performing well compared to the rest, you might want to consider exiting it and putting it somewhere better. Using rebalance, you can exit non-performing old fund and reinvest in a better performing fund. Scripbox will also tell you if there is an exit load (fee collected by some funds if you exit before a tenure, like an year) or if you are going to incur any short term capital gain taxes if it’s less than a year old.
Withdraw: Ability to withdraw funds directly to your bank account.
Trust me all of the above tasks otherwise are tedious. So, do give them a visit and start investing. Remember, always do your own research before investing.
Charges: Scripbox is free to use, they make their money from the commission they earn.