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Product crack - Scripbox

Scripbox is a firm that solicits your money into a basket of four MF schemes.

What is it?

In between financial planners who design a financial plan for you, taking into account your income and expenditure on one side and your mutual fund (MF) distributor who just gives you the forms of MF schemes that you want to invest in on the other side comes Scripbox.

Scripbox is a firm—and also the name of its wealth management tool or basket of funds—that solicits your money into a basket of four MF schemes. The firm is an off-shoot of an equity research company called Probe Equity Research Ltd that specialises in providing research to companies, private equity firms and so on.

One can invest in the scripbox basket, which was launched in November 2012, by opening an online investment account at Scripbox.com, download the pre-filled application form (you fill the details online and then take a print out), attach your know-your-client documents and a cancelled cheque, courier them and you’re good to go.

This basket is reviewed once a year. You need to buy and sell on your own from its website; the basket is just an indicator.

What’s good?

It absolves you of research and gives you a ready basket to invest in. Since Scripbox is entirely online, it’s convenient for those who can buy funds by merely transferring money over the Internet. Scripbox has laid a lot of emphasis on systematic investment plans and you can choose the amounts you want to invest in each scheme. The layout is simple; your account also gives you a calculation of capital gains which is useful at the time of filing your tax returns and you also get your account summary with historical transactions.

What’s not?

Scripbox considers only diversified equity schemes, including large-cap schemes. This leaves out all other schemes including mid-cap, balanced, debt and even equity-linked saving schemes. In other words, it caters to a very narrow set of investors, who want to save for their retirement and will remain invested for a long time. At present, one-time investment takes about three working days for money to move out from your bank account and units get allotted to you on the fourth day. This is unlike most other online financial portals that allow you to invest in MFs, but Scripbox tells us they’re working on this to make it quicker.

Mint money take

Although it is innovative, it does not suit everyone. The pool of schemes is narrow. It also seems Scripbox relies too much on past performance as it has recommended Canara Robeco Diversified Fund in early 2013 (its annual change). Its past performance, though, is largely because of its former fund managers who quit the fund house during the last three years. If you had invested 20,000 each month in Scripbox’s four equity schemes from January 2005 till December 2012, you’d have got a return of 13.25% compared with a return of 10% from Nifty on a compounded annualized basis. That may be outperformance, but we feel a wider pool of funds is a better alternative. Pick your schemes from Mint50 and then take help of any portal to make your investments if you want to go online and contact your distributor.

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