FinoZen App: Discussion

Im using it since 3 months.
Its totally safe
Our money doesnt go to finozen, instead, it goes directly to reliance mf
Finonzen is just the middle ground between you and reliance mf
Incase it shuts down, your money is safe with reliance mf and you can withdraw it anytime, no worries.

Much easier to invest directly than go through a broker. One time KYC nneeded to invest in mutual funds which can be done within a couple of minutes on Reliance website as well if you haven’t done it already in the past with any other mutual fund . There is no guarantee on returns be it via reliance directly or via finozen, it is all based on the market.

Don’t forget that income earned from mutual funds and finozen is taxable, I.e. you are expected to declare and pay taxes on this income based on your tax brackets. If you withdraw less than 3 years, it will be taxed at your tax slabs (10/20/30%) and if you keep longer than 3 years, it will be liable for long term capital gains (15/20% with indexation benefits I think)

Since this income will get reported by mutual funds and the markets automatically, I would strongly suggest not to avoid declaring this income as it may bring you in trouble with the authorities

just one point to add .. if FinoZen app is investing in Reliance MF,.. why can’t u invest directly and get visa card ..
https://www.reliancemutual.com/investor-service...

Also the kyc is needed in both cases .. FinoZen and direct MF investment .. if your kyc is done u dont need to do anything else while investment. .

Finozen is basically a front for investing in Liquid Funds. Liquid funds are special mutual funds investing primarily through call money (DEBT) market. They are subject to standard mutual fund taxation rules. If you choose dividend option, the dividend is tax free in the hands of the investor, but fund manager has to pay dividend distribution tax at about 28%. If you choose growth option then the gains are taxable in the hands of the investor, at normal rate for less than 3 years and at long term capital gains rate for more than 3 years. The standard return pattern of liquid funds has been in the range of 7-8.5% p.a. for growth options (where investor has to pay tax) and 5-5.5% p.a. for dividend options (where its tax free in the hands of the investor).
Keep the same money in Digibank Digisavings account and you will get roughly the same increase at 7% p.a.. With the additional factor that interest on all your savings accounts together upto 10000 per year is tax free and you also get the assurance of RBI insurance on your principal (upto 1 Lakh). Digibank is savings account. So is Airtel Payments Bank. Which means, you can withdraw or transfer anytime you want to. In fact for Finozen, there is a time lag of 24-48 hours from initiating request to getting credit but in Digibank its instant, through electronic transfer or ATM withdrawal.
Things like Liquid Funds, either directly or through brokers like Finozen, are for those who are in the high tax bracket. If you in 20% or lower bracket, even Airtel money is better. And if you are thinking long term, invest in PPF or NPS (debt fund option). Both gives tax free returns.

Finozen in how much time credits the referral amount?.

This is not bank interest, hence not exempt from tax. Check the rules for short term liquid funds

Pm me for referal