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Fortune Wealth Management launches Index Investment Scheme – BusinessLine

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Coimbatore-based Fortune Wealth Management has launched a scheme that will enable investors to directly invest in the index.

Highlighting the advantages of the scheme, Jose C Abraham, Managing Director of Fortune said the company proposes to invest in the index directly by buying the components of the index in the same proportion of their set weightage.

“This direct buy is advantageous as the shares remain in your own demat account, dividends will be credited directly to the investor’s bank account, which in turn helps save the dividend distribution tax of 10 per cent. Currently, the dividend yield on the Sensex is 1.5 per cent,” he added.

Abraham further pointed out that under the scheme, the expense ratio would be lower at 0.5 per cent compared to investing in mutual funds and PMS. “Exiting in overheated markets and re-entering at lower levels is possible because it is as simple as buying and selling a share,” he said, and continued “investing in the index solves many problems — first of all there are not many choices for investors as in selecting a mutual fund and the difficulty they face in identifying a good share.”

The company is targeting HNIs for investing in the index scheme.

‘Comfortable option’

Responding to a query, the Fortune MD said, “In the current scenario of low interest rates and lack of other investment options, stock market is the place to deploy your savings. Investors generally look for returns that would beat bank interest rates comfortably, and we at Fortune want to give exactly that by investing in indices such as Sensex, and Bank Nifty, among others.”

Fortune Wealth Management is a member of NSE, BSE and Depository Participant of CDSL.