Investment Guidelines & Disclaimer
India's regulatory framework, risk disclosures, and how to use our tools responsibly
Important: FinPlann is a financial planning software tool — not a SEBI Registered Investment Adviser (RIA), stockbroker, or mutual fund distributor. All outputs are estimates for educational use. Please read this page carefully before making any investment decision.
1. Our Regulatory Position
In India, investment advice is regulated by the Securities and Exchange Board of India (SEBI) under the SEBI (Investment Advisers) Regulations, 2013. A SEBI Registered Investment Adviser (RIA) is authorised to provide personalised financial advice — considering your individual risk profile, income, goals, and tax situation.
What we ARE
- A financial planning software tool
- A calculator for projections & scenarios
- An educational & informational platform
- A workflow tool for advisors & their clients
What we are NOT
- A SEBI Registered Investment Adviser (RIA)
- A SEBI-registered stockbroker or sub-broker
- An AMFI-registered mutual fund distributor
- A Portfolio Management Service (PMS)
- A licensed insurance / tax adviser
Accordingly, no output from FinPlann should be treated as personal investment advice. The SEBI Investor Charter and regulations require all investors to receive advice only from registered, qualified professionals.
2. How Our Tools Work
Our calculators apply standard financial mathematics:
SIP Calculator
Uses compound interest formula assuming a fixed annual return. Actual mutual fund NAV is market-linked and variable.
SWP Calculator
Projects how long a corpus lasts under fixed withdrawal and return assumptions. Sequence-of-returns risk is not modelled.
NPS Calculator
Estimates corpus using compound growth and annuity rules. Actual NPS returns depend on the Pension Fund Manager and chosen asset allocation.
Home Loan EMI
Standard reducing-balance EMI formula. Actual EMI may differ due to lender processing fees, GST, and rate resets on floating-rate loans.
Health Cover
Estimates recommended cover based on age, city, and family size. Actual premium and eligibility depend on the insurer's underwriting criteria.
Financial Planner
Aggregates your income, expenses, investments, and goals into a personalised summary. Projections use the return rates you input.
Key assumption: All calculators assume stable, fixed return rates over the entire investment horizon. In practice, returns are volatile and vary with market cycles, fund selection, and macroeconomic conditions.
3. Understanding Investment Risk in India
Every asset class carries a different risk and return profile. Before investing, understand where each category sits on the risk spectrum:
Risk Spectrum — Low to High
PPF / EPF
Lowest
FD / RD
Very Low
Debt MF
Low-Med
Hybrid MF
Medium
Large-cap
Med-High
Small-cap
High
PPF (Public Provident Fund): 15-year lock-in, guaranteed by GoI, tax-exempt under EEE regime. Interest rate set quarterly by the government.
EPF (Employee Provident Fund): Mandatory for salaried employees above threshold. Interest declared annually by EPFO. Partial withdrawal allowed for specific goals.
NPS (National Pension System): Market-linked Tier I pension account. Mandatory annuity at retirement (min 40%). Tax benefits under Sec 80CCD(1B).
Sukanya Samriddhi Yojana: For girl child (up to age 10). 21-year maturity. GoI-guaranteed, EEE tax status.
Risk note: Returns on PPF, Sukanya, and SSY are reset periodically — locking in a rate today does not guarantee the same rate for the entire term.
Mutual fund investments are subject to market risks. Read all scheme-related documents carefully before investing.
Equity Funds (Large/Mid/Small-cap, Flexi-cap, Sectoral): Returns are market-linked. SEBI's Riskometer categorises these as Moderately High to Very High risk.
Debt Funds: Subject to interest rate risk and credit risk. Short-duration funds are lower risk; credit-risk and long-duration funds carry higher risk.
Hybrid Funds (Balanced Advantage / Aggressive Hybrid): Mix of equity and debt. Risk depends on equity allocation.
ELSS (Tax-saving funds): 3-year lock-in. Equity-linked, so market risk applies. Tax benefit under Sec 80C up to ₹1.5 lakh.
Expense Ratio & Exit Load: Ongoing charges reduce net returns. Check direct vs. regular plan costs.
Term Insurance: Pure life cover with no maturity value. IRDAI-regulated. Always compare claim settlement ratios.
Health Insurance: Subject to waiting periods, sub-limits, and exclusions. Medical inflation (10–15% p.a.) should be factored in.
ULIPs: Combine insurance and investment. Higher charges than pure mutual funds. Market-linked returns, not guaranteed.
Guideline: Experts generally recommend keeping insurance and investment separate.
Real Estate: Illiquid, high ticket size. Returns are location and timing dependent. REITs offer listed exposure with better liquidity.
Gold: Hedge against currency devaluation. Sovereign Gold Bonds (SGB) offer interest + capital appreciation with sovereign guarantee.
Alternatives (P2P, InvITs, crypto): Higher risk, limited regulation. Suitable only for sophisticated investors with small allocation.
4. Tax on Investment Gains — Key Points
Tax rules are subject to change with each Union Budget. Below reflects Union Budget 2024 changes (FY 2024-25). Always consult a CA for your specific situation.
| Instrument | STCG | LTCG | Holding Period |
|---|---|---|---|
| Equity MF / Stocks | 20% | 12.5% (above ₹1.25L exempt) | LT if > 12 months |
| Debt MF | Slab rate | Slab rate (no indexation) | LT if > 36 months |
| Real Estate | Slab rate | 12.5% (no indexation) | LT if > 24 months |
| Gold / SGBs | Slab rate | 12.5% (SGB maturity tax-free) | LT if > 36 months |
| PPF / EPF | Fully exempt (EEE status) | — | |
* Our calculators do not deduct taxes from projected returns. Actual post-tax returns will be lower.
5. SEBI Investor Rights & Charter
As an investor in India, you have the following rights under the SEBI Investor Charter:
Invest only with SEBI/AMFI/IRDAI registered intermediaries
Receive a signed agreement disclosing fees, risks, and conflicts of interest
Receive suitability assessment before any advice is given
Receive account statements, portfolio reports, and P&L regularly
Lodge grievances with SEBI SCORES portal or the IGRS
Refer disputes to SEBI Online Dispute Resolution (ODR) at smartodr.in
6. When to Consult a Registered Professional
Use FinPlann's tools for planning scenarios and understanding concepts. But consult a registered professional when:
Making a first-time investment above ₹1 lakh
Choosing between multiple products (ULIPs vs. MF, NPS vs. PPF)
Planning retirement income, inheritance, or estate distribution
Complex tax liabilities — business income, capital gains, foreign income
NRI investing (FEMA, TDS, DTAA implications)
Major life event — marriage, child, job change, inheritance
How to find a SEBI RIA:
Search on the SEBI Intermediary Portal. Fee-only RIAs are often preferred for unbiased advice.
7. AMFI Standard Disclaimer
"Mutual fund investments are subject to market risks. Read all scheme-related documents carefully before investing."
Past performance is not indicative of future results. The NAV of schemes may increase or decrease depending upon factors affecting the securities market. FinPlann is not an AMFI-registered distributor or SEBI RIA. Our calculators are mathematical tools only. No product recommendation is implied.