Frequently Asked Questions

AMFI (Association of Mutual Funds in India) registration is a mandatory certification for all mutual fund advisors in India. Our ARN (AMFI Registration Number) is ARN-344268, which means we are:

• Certified by AMFI after passing rigorous examinations
• Authorized to advise on mutual fund investments
• Required to follow SEBI guidelines and code of conduct
• Subject to regular compliance checks and continuing education
• Professionally liable for the advice we provide

Working with an AMFI-registered advisor ensures you receive qualified, ethical, and compliant financial guidance.

Yes, NovaRock Advisory operates in full compliance with SEBI (Securities and Exchange Board of India) regulations. We adhere to all guidelines regarding client interactions, disclosure norms, advisory practices, and ethical standards set by SEBI.

We are based in Kurukshetra, Haryana, and serve clients across India. Most of our consultations can be conducted online via video call, making our services accessible regardless of your location.

We offer transparent, client-focused fee structures:

• Asset-based fees: 0.5% to 1% of Assets Under Management (AUM) annually
• Fixed fee plans: Available for specific services like financial planning
• No hidden charges: All costs disclosed upfront
• Early Client Program: First 25 clients receive 50% reduced fees for 12 months

Visit our Fee Structure page for detailed pricing.

We welcome investors of all levels. You can start a SIP with as little as ₹500 per month. For comprehensive financial planning services, we typically work with clients who can invest at least ₹5,000 per month or have ₹50,000 for lumpsum investments.

Our advisory fee covers:

• Initial financial planning and goal setting
• Risk profiling and assessment
• Customized portfolio recommendations
• Quarterly portfolio reviews and rebalancing
• Ongoing support via phone, email, and WhatsApp
• Annual tax planning and optimization
• Access to educational resources and market updates

We recommend regular plans (not direct plans) where we earn a commission from the fund house. However, we offset this by charging lower advisory fees, ensuring you get unbiased advice. Our fee structure is designed to align our interests with yours—we succeed when your portfolio performs well.

Direct Plans: You invest directly with the fund house. Lower expense ratio (about 0.5% less) but no professional guidance, rebalancing, or behavioral coaching.

Regular Plans: You invest through an advisor like us. Slightly higher expense ratio, but includes ongoing portfolio management, rebalancing, goal tracking, and support during market volatility.

Our recommendation: For simple, large-cap index funds with long horizons, direct plans work. For actively managed funds, mid/small-caps, and goal-based investing, regular plans with professional guidance deliver better outcomes despite the marginally higher cost.

Choose SIP if:

• You have regular monthly income (salaried professional)
• You want to reduce market timing risk
• You prefer disciplined, automated investing
• You're starting with smaller amounts (₹500 - ₹10,000/month)

Choose Lumpsum if:

• You have a large amount available (bonus, inheritance, property sale)
• Markets are at reasonable valuations
• You have a long investment horizon (7+ years)

Best approach: Combine both—start a regular SIP and invest lumpsum when you receive windfalls.

A general rule of thumb: Invest 20-30% of your monthly income toward long-term goals. For example:

• ₹30,000 salary → ₹6,000 to ₹9,000 monthly SIP
• ₹75,000 salary → ₹15,000 to ₹22,000 monthly SIP
• ₹1,50,000 salary → ₹30,000 to ₹45,000 monthly SIP

However, this depends on your financial goals, existing liabilities, and emergency fund status. We help determine the right amount during your consultation.

Yes, most mutual funds are highly liquid. You can redeem your units anytime, and funds are typically credited to your bank account within 1-3 business days.

Exceptions:

• ELSS (tax-saving funds) have a mandatory 3-year lock-in period
• Close-ended funds have specific maturity dates
• Some funds may have exit loads if redeemed within 1 year

However, frequent withdrawals defeat the purpose of long-term wealth creation and may incur capital gains tax.

Mutual funds are regulated by SEBI, making them safer than direct stock market investments. However, they are market-linked products, meaning:

• No guaranteed returns: Returns fluctuate based on market performance
• Risk varies by type: Debt funds are lower risk, equity funds higher risk
• Long-term safety: Historically, equity mutual funds have delivered 12-15% returns over 10+ years
• Diversification reduces risk: Funds invest across 30-50+ companies

Bottom line: Mutual funds are safer than individual stocks but riskier than fixed deposits. Professional guidance helps match the right funds to your risk tolerance.

Getting started is simple:

1. Schedule a free consultation: Call/WhatsApp +91 9468365162 or fill our contact form
2. Initial discussion: We discuss your financial situation, goals, and concerns (30 minutes)
3. Risk profiling: Complete our risk assessment to understand your investment personality
4. Customized proposal: Receive tailored recommendations within 2-3 days
5. Onboarding: Complete KYC, sign advisory agreement, and start investing

The entire process typically takes 5-7 days from first contact to first investment.

For mutual fund KYC (Know Your Customer), you'll need:

• Identity Proof: PAN card (mandatory), Aadhaar card
• Address Proof: Aadhaar, passport, driving license, or utility bill
• Bank Details: Cancelled cheque or bank statement
• Photograph: Recent passport-size photo
• Signature: Digital or scanned signature

Good news: If you're already KYC-compliant (invested in mutual funds before), you don't need to submit documents again. We can verify your status online.

Typically 5-7 business days:

• Day 1: Initial consultation and risk profiling
• Day 2-3: Portfolio recommendations prepared
• Day 4: Review and finalize recommendations
• Day 5-7: KYC completion and first investment

If you're already KYC-compliant, we can start investing within 2-3 days.

Yes, NRIs can invest in Indian mutual funds. However, there are additional compliance requirements:

• NRO/NRE bank account required
• Additional KYC documents (overseas address proof, visa/work permit)
• FATCA (Foreign Account Tax Compliance Act) declaration
• Some mutual funds have restrictions on NRI investments

We can guide you through the NRI investment process during consultation.

We conduct quarterly reviews (every 3 months) to:

• Track portfolio performance against benchmarks
• Rebalance if asset allocation drifts significantly
• Replace underperforming funds if necessary
• Adjust strategy based on life changes or goal modifications

Additionally, we monitor portfolios continuously and may reach out if urgent action is needed (e.g., major fund manager changes, regulatory issues).

Market corrections are normal and expected. During volatile periods, we:

• Provide regular updates and market commentary
• Offer behavioral coaching to prevent panic selling
• Identify buying opportunities (if you have surplus funds)
• Rebalance portfolio to maintain target allocation
• Remind you of long-term goals and historical market recovery patterns

Key principle: Our role is to help you stay disciplined and avoid costly emotional decisions that lock in losses.

Absolutely. You can:

• Increase or decrease SIP amounts
• Pause or stop SIPs temporarily
• Add lumpsum investments
• Switch between funds
• Redeem partially or fully

However, we recommend discussing significant changes with us first to ensure they align with your long-term goals and don't trigger unnecessary tax implications.

Yes, we offer comprehensive insurance planning including:

• Term life insurance (needs analysis and policy selection)
• Health insurance (family floater, individual plans, top-ups)
• Critical illness coverage
• Disability insurance

We help ensure you have adequate protection before focusing on wealth creation. However, our primary expertise is mutual fund advisory.

Yes, tax optimization is integral to our service. We help with:

• Section 80C investments (ELSS, PPF, EPF)
• Section 80D deductions (health insurance premiums)
• Capital gains tax planning (short-term vs long-term)
• Tax-loss harvesting strategies
• New vs old tax regime analysis

While we provide tax-efficient investment strategies, we don't file tax returns. We recommend working with a CA for tax filing.

Absolutely. Retirement planning is one of our core services. We help you:

• Calculate required retirement corpus based on lifestyle expectations
• Determine monthly SIP needed to achieve the target
• Choose appropriate asset allocation based on years to retirement
• Optimize NPS, EPF, PPF, and mutual fund investments
• Plan systematic withdrawal strategies post-retirement

Visit our Retirement Planning page for details.