Frequently Asked Questions
Know Why Our Customers Think StockBasket is The Better Investment
Basic Questions on StockBasket
StockBasket is one of the easiest ways of investing in the stock markets and creating wealth. StockBasket as the name simply suggests, is a carefully expert-selected basket of stocks which you can invest in one click.
StockBasket carefully selects a set of stocks which are India’s Top Growing Companies, Market Leaders, etc. that gives you ownership of those businesses. As these businesses become larger as the India growth story continues for years to come, the value of your investment and money will also grow with these large companies.
StockBasket is a basket which comprises of few stocks. Each basket may have 5 to 15 stocks. In direct investing in equity, single stock is bought at a single point of time and there is no weighting system or mechanism that is followed while buying single stocks. StockBasket actually correctly identifies the weights in which the investor should invest in these individual stocks so that the risk is reasonably diversified.
For investing in StockBaskets, you need to open a SAMCO trading and DEMAT account. Opening a SAMCO account is FREE, paperless and takes less than 5 minutes. Open a SAMCO Account
The following documents are required to open a SAMCO account-
- PAN Card
- Proof of Address
- Proof of Income (Only in case of Derivatives Segment)
- Proof of Bank Account (Copy of statement or cancelled cheque)
StockBasket is a product which is owned and built by Samco Securities Limited which is a SEBI registered Research Analyst Entity. Samco has built research systems and mechanisms over the years to be able to identify stocks in a more scientific and careful manner. Each StockBasket comprises list of stocks that have been created using SAMCO’s research system. It carefully takes into consideration sectoral exposure, risk diversification, single stock exposure and therefore each StockBasket tries to minimize the risk at the same time giving exposure to good high growth, high return companies to an investor. These StockBaskets have been created by our Research Analysts who have a combined experience of over 100 years in Equity Markets.
StockBasket is designed to give you the benefit of wealth creation over long-term, however few mistakes can disrupt that process -
- Selling a StockBasket too early - Selling in panic because of short-term Fluctuations as it is not possible to perfectly time the markets. It is very much possible that after buying a StockBasket, the prices could slightly go up or down, but in the long-term trend identified is upwards and therefore and you are likely to create wealth
- Do not transfer your shares to your demat account
- Do not sell on any other platform or any other SAMCO platform otherwise the composition will get broken and you will not truly realise of owning a basket over a long period of time.
Eg. If you bought a StockBasket, then do not sell it on .exe platform.
How should I select a StockBasket for investments?
Typically StockBaskets range from Rs. 3,000 to Rs. 300,000. So, a starting basket is roughly about Rs. 3,000 and therefore it is the minimum amount required to invest in StockBaskets.
Go to the “Add Funds” option in the app where you can use UPI, NetBanking, NEFT or RTGS to transfer funds from your bank account. Please note that the funds should only be transferred from the bank account linked with your SAMCO Trading account. As per the regulations, we will have to refund the Money received from any other account and will not be available for buying StockBaskets.
There are a variety of baskets that are created on StockBasket. The Descriptions and Rationale for Investing are self-explanatory. Baskets could either be thematic or goal based in nature.
For Eg. If you are saving and investing for Retirement, you could buy Retirement in 2040 Basket. If you are just a beginner, you could invest in the Beginner’s Basket. So please read the Description and the Rationale for investing in each and every basket.
Secondly, you can also looked at certain baskets which are flagged as “Featured” or “Recommended” on the StockBasket platform. An investor depending on their risk profile, investment capability and the amount they can invest, they can select their basket accordingly suiting their needs.
Also, all the baskets can be found in the “Explore” option in the StockBasket App.
The recommended minimum time for holding your investments in StockBaskets is 5 years. Holding a basket for 5 years or more reduces the risk and increases your chances of wealth creation.
Open the app, select your basket and click on “Invest” and Confirm your order on review page and you are set. It is that simple.
An order is called a Broken when all parts of an order are not executed due to various reasons such as unavailability of the quantity or orders are placed near market closing. In such a case, the constituents in your basket does not match the designed constituents. For eg. 4 out of 5 stocks are executed, but the 5th stock is not executed due to some reason, this makes the order broken and needs to be fixed to match exactly to the basket actually designed by the Research team. So, the broken order executes the unfilled orders.
Ideally, StockBaskets are designed as investment baskets to help you create wealth over the long-term. The ideal composition is such that these baskets are not required to be bought and sold at regular and frequent intervals. However, from time to time there may be certain opportunities based on market and business cycles and therefore when such opportunities arise, the StockBasket research team will be creating baskets which shall be tagged as [Trading] Baskets which are designed to enable you to benefit from short term moves and short-term changes in cycles
The desired objective of this trading baskets is to generate an income and not to create long-term wealth.
These trading baskets extremely high-risk in nature and you should only invest / trade in these baskets if you have a high risk-appetite.
Value for Money indicates whether buying a particular StockBasket at current prices is Expensive or Cheap. Where Excellent indicates that the StockBasket is very undervalued while Very Poor Indicates that the StockBasket is extremely Overvalued and investment in this basket should be avoided till the prices come to a reasonable level.
The Strength of the Basket indicates the resilience of the portfolio. In simpler words, it indicates how well and soon the StockBasket will recover from a fall. Excellent Strength indicates that it is strongest while Ultra Low indicates that it is the weakest.
StockBasket Vs Other Assets
- It takes more than 9 years to double your investment amount when invested in Fixed Deposits. While, there is a very good chance that you will double your money in much less time than that.
- Interest rates on FDs are on the decline. Currently, they barely cover inflation rate if after taxes returns are considered.
- Usually equity mutual fund schemes invest in over 50 stocks, making your investments overly diversified and thus hamper the potential returns while StockBaskets are consciously designed to have a range of 5 to 15 stocks giving the optimum level of diversification.
- Mutual Funds as a statutory requirement cannot keep cash over a certain part of their investment forcing them to invest even when the time or opportunities are not right.
- If Mutual Fund Schemes are classified as Large Cap Scheme, it cannot invest in Mid or small cap over 65%
- Real Estate investments require huge amounts of capital to invest, while with StockBasket, you can invest for as low as Rs. 3,000.
- Real Estate investments require a lot of maintenance which creates headache, while StockBasket investments are a stress free way of investing
- Buying and Selling Real Estate properties can be burdensome and often take months to complete.
- Gold as an investment has an inherent characteristic over long-term, it will grow enough to cover inflation.
- Investing in Physical gold comes with a lot of risk such as quality, risk of theft and stress of maintenance and storage and all this with lower returns than StockBasket.
StockBasket Pricing
There are three types of fees involved in buying a StockBasket -
- Buying a basket is Absolutely Free.
-
Research Subscription Fee* -
A nominal Research Subscription fee is charged for every basket that you own. This is billed to your trading account on a quarterly basis.
*Subscription Fees are subject to Fee Back Guarantee. -
Exit fee -
Only applicable for baskets sold before completing a holding period of 5 years. If you sell a basket after holding it for 5 years, no exit fee is charged.
All the details of these fees are available in the Description on the quote page of the Basket.
There are a variety of stocks that are owned as a part of StockBasket which requires continuous monitoring from SAMCO research team. The market dynamics change frequently and the research team keeps a tab on these changes and notifies them to you and also its impact on your investments. Therefore StockBasket makes up for this cost via the fees charged.
It is based on the principle of - “We Dont Make Money, If you Don’t”. It means that if you do not make money in a particular basket even after holding it for a period of 5 years then the subscription fee collected over 5 years will be refunded to you.
MoneyBack Guarantee will not be applicable in the following situations -
- If you sell StockBasket before completion of 5 years from the date of buying.
- If you are prompted to rebalance the Stock Basket and you do not approve the rebalancing within 3 days.
Exiting StockBasket
No, there is no Lock-in period for investments in StockBasket. But we Recommend that you hold your StockBaskets for at least 5 years. If you exit a StockBasket before the maturity period of 5 years, you are likely to get suboptimal returns on your investment.
It is as easy as investing in the StockBasket. Open the App, go to “Investments” page and select a basket that you want to sell and click on “Sell” and you are done!
Getting updates on your StockBasket
You will get periodical updates of your investments in StockBasket via emails and also you can check real-time position of your baskets in the Investments Page of the app.
If at all we change a constituent of a basket, the research team will notify you of the change by way of App notification and you will need to approve the rebalances in order to make sure you are invested in the latest version of the basket. This is important for getting the best results from your investments in StockBasket.
There is no fixed frequency followed to rebalance the baskets. StockBaskets are rebalanced as and when the market conditions change. Research team will notify you to rebalance. Again, we emphasise that rebalancing will be done in a very rare case scenario.
Your Account
It is a simple 3-step process -
- Open the app and go to “My Account” Page
- Click on “Setting & Profile”
- Click on “Change Password” and set your new password.
You can easily access your orders and Order History in “My Account” page in the App.
You can view your Baskets and investments and also see it’s current value by going to “Investments” Page in the App.
As the shares purchased using the StockBasket App will be in your DEMAT account, you will receive all the dividends directly in your linked bank account. Other corporate actions such as Bonuses, Splits will also automatically adjusted in your DEMAT account.
You will liable to account and pay taxes payable on selling the baskets. If you hold the basket for a period less than 1 year, then you will subject to Short-Term Capital Gains Taxes and if you hold the basket for more than 1 year then, you will be subject to Long-term Capital Gains Taxes. Also, if dividends received by you is also subject to Income Taxes. So, keep a tab on your Incomes and gains and accordingly pay taxes.
You can also add StockBaskets to your watchlist to keep a close look on it. For Eg. you found a basket that you like and want to invest in, but currently the Value For Money indicator is “Very Poor”, in such a case, you can add this basket to your watchlist so that you can buy it when the price of the basket becomes reasonable to buy.
Everthing about StockBasket SIP
It is an SIP in the quantity of a StockBasket and not an SIP of a fixed amount of money. As market prices of stocks change with every second.
You can start an SIP in StockBasket in the following frequencies -
- Monthly
- Quarterly
- Half Yearly
- Yearly
It is a simple 4-step process -
- Open the StockBasket app and login
- Go to the “Explore” tab and select the basket that you want to start SIP in
- Click on “SIP” and select the quantity, frequency and start date and click on “Confirm”
- Create an auto-debit mandate, so that your investing discipline is maintained.
- SIP is known to be one of the best ways to invest. It keeps you disciplined and invests a fixed amount regularly. And SIP in mini-portfolios of expert selected stocks is like killing two birds with one stone. Invest regularly in StockBasket with SIP feature.
- Disciplined Investing approach: SIP will help you to invest your money in a disciplined manner thereby helping you create wealth in the long-term.
- Best way to beat volatility: SIP is known as one of the best ways of investing as when you invest smalll amounts, you will be able to invest even during very volatile times without worrying if the market is going to full further and you will lose money or go up and you will lose the opportunity of investing.
- Wealth creation with small periodic investments with SIP: SIP will help you grow your wealth by investing small amounts from your income regularly in quality stocks via baskets.
- Risk aversion with StockBasket SIP: It helps you as an investor to invest timely in diversified baskets or mini portfolios of Stocks thereby reducing the risk in the stock market.
- Power of compounding: Investing in the right stocks for a long time gives you an edge with the power of compounding which ultimately helps in long term wealth creation.
Auto-Debit Instruction Mandates
When you create an auto-debit mandate, your SIP investments are assured to go through without you putting on any efforts. On a fixed date (working day), the amount will be deducted from your linked bank account and will be invested in the choice of your basket.
Mandates are created in multiples of Rs. 5, 000 so that you do not need to create new mandates as and when the value of the basket in which your SIP is ongoing.
This happens when your SIP investment amount is greater than your auto-debit instructions registered with us. You can change this by creating an auto-debit mandate from by following three simple steps -
- Login to your StockBasket app and go to “My Account” section,
- Click on “Mandates” and then click on “Create New Mandate”
- Create a mandate with an amount greater than your SIP amount using e-mandate or physical auto-debit mandate.
Creating an auto-debit mandate of Rs. 100,000 or more has to be mandatorily submitted in a physically signed scanned copy as per rules made by NPCI.
Because your SIP usually goes before 10 AM on the day of your SIP, the payment gateway needs 1 day to communicate with us that the money is successfully debited from your account.
The prices of stocks in your StockBasket change every second when the markets are open. Thus, to ensure that your SIP goes without any hiccups, a little extra amount is debited from your bank account (2% of the basket value on the date of debit instruction creation). But, don’t worry any money not utilised towards buying your basket will stay in your ledger account and you can either withdraw it or invest it.
You can see and create mandates in the “Mandates” section in the “Accounts” tab in the StockBasket app.
It is very likely that the amount of your active mandates is less than an active SIP in your account. It is not a problem, though your bank account will be debited more than once in smaller chunks to transfer the required sum for your SIP investment.
When there are no active mandates linked with your account, your SIP installment will be invested using the clear balance in your Samco ledger account if any.
Others
You can see your active SIPs in “Ongoing SIPs” in the “My Account” section.
You can stop your active SIPs from “Ongoing SIPs” in the “My Account” section.
Missed SIPs means the SIP installment was not invested successfully. This mainly happens because of insufficient funds in your bank account or your Samco ledger account.
If you do not have an active mandate, we recommend that you keep sufficient balance in your ledger account for your SIP installment to go through successfully. Suppose, you are not able to transfer the amount successfully, your SIP installment will not go through and sit in the “Missed SIPs” section. After transferring adequate funds, you can always “FIX” your missed SIPs and invest through the app.
Whenever a rebalance is pushed for one of the baskets in which you have an active SIP, you will have to go to the app and update your basket to the latest version to give its effect at two places -
- Your current holdings (through SIP or lumpsum) will be rebalanced (recommended); and
- Your further SIP installments will go in the new version (recommended too)
To keep things simple, you can just increase the quantity of basket in your basket by modifying the basket from “Ongoing SIPs” in the “My Account” section.
Just like mutual fund SIPs, for smoother experience, the debit instruction is prepared 4 days before the SIP date and sent to the bank. Once the debit instruction is created and ready for sending to the bank, your SIP order cannot be cancelled.
There are chances that your SIP date may fall on a trading holiday, in which case your basket could not be bought and will be done on the next trading day.
SmartSwitch
StockBasket Smartswitch helps you assess your portfolio and recommends you to switch poor quality stocks to portfolios of superior quality stocks created by our research team.
a) It calculates your portfolio score depending on the quality and weight of the stocks in your portfolio.
b) There are two ways you can improve your portfolio score -
Switching Single Stock - You can do this by clicking on “View analysis” on any stock you want to switch. If a stock’s value is more than the smallest basket, it will show you the option to switch.
Switching Entire Portfolio - You can do this by clicking on the portfolio score.
c) The SmartSwitch algorithm divides all your holdings into three parts -
Stocks that need your attention: These stocks are of poor quality and are expected to make even further losses to your portfolio. They are to be completely switched to a better quality portfolio of stocks.
Stocks that are illiquid: Stocks that are not traded very frequently on the exchanges. Such stocks are excluded from the switching process to ensure smooth switch transactions.
Stocks that are Strong: Stocks of good quality (3 Star and above) are also by default excluded from the switching process with an option for clients to select them to switch to a “Portfolio” of stocks created by our market experts.
Then, it recommends that you switch all your poor quality stocks and also have the option to switch good quality stocks. Once you have selected the stocks that you wish to switch you will be able to see the StockBasket recommendation. You can also see on the review screen the portfolio of StockBasket and its performance.
It is India’s only stock rating tool that helps investors choose the right stocks. It analyses more than 20 million data points every day and assigns a rating on a scale of 1 to 5 stars to every stock based on 50+ financial parameters. 5 stars for best stocks and 1 star for poor stocks. Thereby, assisting investors in deciding which stocks to invest in and which to stay away from.
| Ratings Scale | Business | Valuation in relation to Price | What should you expect? |
|---|---|---|---|
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Great business | Great Price | The business can be a great compounder for investors with return expectations of 15% compounding over a 5-year period with relatively lower downside risks. |
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Good Business | Fair Price | The business can be a good compounder for investors with return expectations of 12-15% compounding over a 5-year period. |
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Average Business | Fair Price | The business may/may not be a good compounder for investors with return expectations of 10-12% compounding over a 5-year period. |
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Poor Business | Fair Price | The business not likely be a good compounder for investors with return expectations of 5-8% CAGR over a 5-year period. |
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Extremely Poor Business | Fair Price | The business will most likely lose money for investors with return expectations of 0-5% CAGR over a 5-year period. |
Samco’s proprietary system evaluates over 2 crore data points to derive the Samco Stock Ratings. Each company is evaluated on several financial parameters including earnings, balance sheet and its quality, cash conversion of each business and a lot more and a quality score is assigned for each business. Subsequently, the price of the stock and its estimated value are computed and compared to assign a margin of safety score. Finally, the business and price-value equation are evaluated together to assign a final stock rating based on the expected return potential and risk reward of each stock.
To improve your portfolio score, you MUST switch poor quality stocks from your holdings to much better quality portfolios of StockBasket. Higher the score, better the returns.
| Ratings | # of Companies with Positive Returns | # of Companies with Negative Returns | Strike Rate % | Average Return % CAGR | Average Return % Absolute |
|---|---|---|---|---|---|
| < 2 Stars & Below | 1363 | 1132 | 54.63 | 14.31 | 280.93 |
| > 3 Star & above | 101 | 1 | 99.02 | 20.69 | 555.71 |
a) There are two types of fees involved in buying a StockBasket -
b) Research Subscription Fee* - A nominal Research Subscription fee is charged for every basket that you own. This is billed to your trading account on a quarterly basis.
*Subscription Fees are subject to Fee Back Guarantee.
c) Exit fee - Only applicable for baskets sold before completing a holding period of 5 years. If you sell a basket after holding it for 5 years, no exit fee is charged.
All the details of these fees are available in the review page of SmartSwitch transaction or on quote pages of all StockBaskets.
There is a possibility that your StockBasket order was broken,
i.e. incomplete and can be viewed in the StockBasket.
