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Frequently Asked Questions

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Investment Advisory

Does it always make sense to buy an UCITS?

No. As outlined in the other FAQs relating to UCITS, on an ETF that hardly pays a dividend, the benefits of investing through an UCITS are marginal.

Does Kristal offer UCITS?

Yes, we do. Please note that the minimum investment amounts starting from USD 2,000 apply. Most UCITS attract higher management fees, transaction cost and wider bid/ask spreads and there is a trade-off between tax savings vs. higher cost which is commensurate with the investment amount.

Why invest in UCITS?

Quality: UCITS needs to conform to European Regulations such as:
  • Diversification: no single holding is worth more than 20% of the fund’s NAV (Net Asset Value). This can go up to 35% under certain market conditions.
  • Investor Safety: the assets of a UCITS ETF must be segregated from those of the ETF provider under the supervision of an independent custodian ensuring investors’ assets cannot be seized to settle the liabilities of the provider in distress.
  • Liquidity: UCITS ETF must be liquid and open-ended. If trading is disrupted on the stock exchange, investors can request brokers to redeem their shares directly with the ETF sponsor.
  • Risk Quality Control: UCITS directive restricts the ETF sponsors to limit the derivative exposure resulting in significant risk quality control.
  • Documentation and Disclosures: UCITS directive imposes a minimum standard of transparency on sponsors including publication of The Key Investor Information Document (KIID), Prospectus and Annual and semi-annual reports.

Tax Advantages: Investing in US securities attracts US Taxes. Even for an investor outside US, Dividend Withholding Tax (standard rate is 30%) is applicable.

  • In case, if investor’s residency country has tax treaty with US, Dividend Withholding Tax can be reduced to 15%. Now countries such as Singapore, does not have tax treaty with US and Singapore based investor of US domiciled securities would be levied 30% withholding tax on the dividend income.
  • Now for a Singapore investor, who is exposed to Withholding Tax levied by US, IRISH UCITS provide an alternative, thanks to the US/Ireland Double Tax Treaty. With IRISH UCITS, the applicable Withholding Tax is 15%.
  • Inheritance Tax- Investments above USD 60,000 in US listed equities, Bonds, ETFs are subject to US Inheritance tax (40%) if the holder of the instrument passes away. Investment in UCITS can help avoiding additional tax burden.

What is UCITS?

A UCITS (Undertaking in Collective Investment Trust Scheme) is an open-ended European investment fund established in accordance with the UCITS Directive. UCITS are typically domiciled in tax-havens such as Ireland or Luxembourg.

At what prices will the Kristals be bought and sold when the Kristal.AI platform prices are yet to be updated or aligned with market prices?

Market orders in case of those placed when the exchange is open, are executed within 1 to 2 hours, at market prices.

However, market orders placed when the exchange is closed are executed once the market stabilises after opening, typically within 20-30 minutes after the market opens.

How do you execute trades in the market?

Trades relating to the Kristal Freedom Account and the Kristal Account are scheduled as follows:

  1. At every 20th minute, i.e an hourly basis 24×7 00:20, 01:20, 02:20 ….all approved trades are pushed into a trade queue.
  2. Checks for the exchange trading hours are done and the relevant trades are routed to the relevant exchange with requisite pre-checks on a real-time basis. A mandatory gap of 10 seconds is maintained between 2 trades requests.
  3. Trades which cannot be executed because the exchange is closed are re-sent into the trade queue.
  4. At the opening of the exchange, trades are not pushed for 45 minutes to allow for stability of the market from the usual opening volatility.

Trades relating to Managed Investment Accounts and Kristal Private Wealth are handled manually by the execution desk.

How do I decide which strategy to invest in?

You can GET ADVICE from our proprietary Advisory algorithm. This is activated once your account is enabled for investment/approved.

You can Get Advice as many times as you wish, by simply going to the Explore section after you log in, selecting Get Investment Advice and providing some basic inputs.

How can I get personalized advice on investments?

You can GET ADVICE from our proprietary Advisory algorithm. This is activated once your account is enabled for investment / approved.

You can Get Advice as many times as you wish, by simply going to the Explore section after you login, selecting Get Investment Advice and providing some basic inputs.

Should I invest a lump sum or in regular intervals?

The decision to invest a lump sum amount or using a SIP (Systematic Investment Plan), which allows you to invest over a longer period should take into account at the following 2 factors:

  1. The investment horizon
  2. The risk/volatility of the underlying investment.

E.g. For high-risk investments (e.g. equities) for a medium to the long-term horizon (1yr and above), cost averaging through SIP is the conservative yet recommended approach. Investing in SIP mode takes away the pressures and risks associated with ‘market timing’.

In India, what is the difference between Regular and Direct Mutual Funds?

Most Mutual Fund schemes in India can be purchased in the following ways:

  1. Regular: You may seek the services of an intermediary (typically Bank, Broker, Distribution Agent of the Fund). They will assist you or provide you with a Platform where you can purchase/sell different Fund schemes and also help the Fund meet its KYC requirements on the Investor. This facilitation usually comes at a cost, which is paid by the Fund to the Distributor. This cost is however added to the operating cost of the Fund resulting in a reduction in your returns.
  2. Direct: You may transact directly with the Fund by completing their Sign Up/onboarding formalities. Since there is no intermediary involved, the Fund does not have to attribute any distribution costs to the scheme, consequently giving you a slightly better return compared to a Regular plan of the same scheme.

How does Kristal.AI rebalance client portfolios?

We analyse all client portfolios regularly to see whether they are within the specified risk tolerances selected by you, but we do not automatically rebalance your holdings. A change in your circumstances or market dynamics will trigger the need to review your risk profile and portfolio in more detail along with with a possible rebalance.

Kristal.AI offers a variety of ETF Baskets and rules based strategies that are rebalanced in regular intervals based on their rules. If you have invested in these Kristals, no further action will be needed.

 

Why would the Advisory algorithm that gives me advice be disabled?

In the unforeseen event of the Advisory algorithm giving results which are unexpected and not in sync with our Investment Committee’s broader views, we may temporarily halt or override the algorithm.

What are the assumptions, limitations, and risks of the algorithms?

Our algorithm runs on past data incorporating our Investment Committee’s forward-looking views. These views and outputs from past data can lead to divergence of performance of our Kristals versus other broad indices or ETFs. Historical data has limitations in terms of the volatility and correlations that have been observed, and future market movements may affect the risk level of a portfolio.

How often do you update the algorithm parameter?

The input parameters of our algorithm are updated on a monthly basis, using the latest end of month market data. However, in case of a sharp market movement, the parameters are adjusted as and when the need arises as well.

Do I have an option to change my portfolio when I want to?

You have the option to rebalance the portfolio when you wish to. You can also make use of the advisory algorithm to get a suggested portfolio based on you investment objectives and risk profile, or if you have a particular strategy in mind, you can invest in it, subject to the condition that the strategy matches your sophistication level.

What is the difference between a Licensed Representative/Financial Advisor and a sales person?

A Licensed Representative or Financial Advisor has regulatory rights to give you investment advice.

  • Kristal.AI Singapore is licensed by the Monetary Authority of Singapore (MAS) under the CMS (Capital Markets Services) license to carry out advisory and asset management activities.
  • Kristal.AI Hong Kong is licensed to carry out advisory and asset management activities in Hong Kong by the Securities and Futures Commission (SFC), which is an independent statutory body charged with regulating the securities and futures markets in Hong Kong.
  • Kristal.AI India holds a SEBI RIA (Registered Investment Advisor) license in India.

A sales person/client representative, on the other hand, is a Kristal.AI representative who can help you with your onboarding process and act as your point of contact in case you need any assistance.

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Accredited Investor Declaration

This is offered only to Accredited and Institutional Investors as defined under the Securities and Futures Act, Chapter 289 of Singapore (“Act”), which broadly comprises of regulated financial Institutions, large corporates, high net worth individuals and sophisticated investors.

An Accredited Investor is an individual
  • Whose net personal assets exceed in value SGD 2 million (or it’s equivalent in a foreign currency) with value of his/her primary residence capped at SGD 1 million, or
  • Whose financial assets (net of any related liabilities) exceed in value SGD 1 million (or it’s equivalent in a foreign currency), or
  • Whose income in the preceding 12 months is not less than SGD 300,000 (or it’s equivalent in a foreign currency)

I agree to opt-in as Accredited Investor and will submit required documentation to confirm the same.

< Back Proceed as Private Wealth

Wealth Management Solutions
Accredited Investor Declaration

This is offered only to Accredited and Institutional Investors as defined under the Securities and Futures Act, Chapter 289 of Singapore (“Act”), which broadly comprises of regulated financial Institutions, large corporates, high net worth individuals and sophisticated investors.

An Accredited Investor is an individual
  • Whose net personal assets exceed in value SGD 2 million (or it’s equivalent in a foreign currency) with value of his/her primary residence capped at SGD 1 million, or
  • Whose financial assets (net of any related liabilities) exceed in value SGD 1 million (or it’s equivalent in a foreign currency), or
  • Whose income in the preceding 12 months is not less than SGD 300,000 (or it’s equivalent in a foreign currency)

I agree to opt-in as Accredited Investor and will submit required documentation to confirm the same.

Proceed as Private Wealth

THEMATIC STRATEGIES

Enabling clients to invest in trending themes like FAMANGThe FAMANG Kristal invests in Facebook, Apple, Amazon, Netflix and Alphabet’s Google stocks. Assets are carefully chosen by an algorithm in order to deliver a superior returns based on past performance. The strategy is rebalanced every quarter., TECHGlobal Technology ETFs is a genetic algorithmic strategy focussed specifically on the Technology sector., ESGProvides exposure to higher rated environmental, social, and governance (ESG) companies while accessing large- and mid-cap stocks in Europe, Australia, Asia and the Far East., etc. with a single click or just create your own thematic basket.

Future-proof your portfolio and capture emerging investment themes.

OVERVIEW

Explore and Identify

Select from a range of expertly designed trending and diverse themes

Efficient Execution

Enabling easy exposure to your preferred themes without the hassle and costs of individual security selection and execution

Only the Best

A ready-made collection of Kristals that derive the best of the specific asset class or theme

Unique Mix

An optimised blend of ETFs and individual counters, enhancing efficiency and profitability

Contact our Relationship Manager
ALTERNATIVE INVESTMENTS

Diversify your portfolio with exclusive Private Equity, Pre-IPO deals, VC Funds & other investments like Bitcoin, Gold, Hedge Funds and many more.

Kristal fractionalizes difficult-to-access deals and opportunities.

OVERVIEW

Instant Access

A wide range of alternative asset classes such as Gold, Bitcoins, Hedge Funds and many more; readily made available

Risk Management

Enables investments in diversified assets hence spreading the risk

Easy Tracking

Enables you to get a consolidated view of investments in all assets at one place, hence facilitating easy monitoring and tracking

Exclusive Deals

Access to exclusive Venture Capitalist, Startup as well as pre-IPO investment opportunities

Low Investment Tickets

Facilitates fractionalization of investments in deals

Contact our Relationship Manager
FUNDS PLATFORM

Professionally managed funds with active investment strategies, screened for you by our investment committee to diversify your portfolio.

Enabling clients to access exclusive investment strategies. View Funds

OVERVIEW

Access

Provides Access to Professional Fund Managers

Low Investment Tickets

Facilitates fractionalization of investments in funds

Diversity

A wide spectrum of investment strategies ranging from Arbitrage to Credit to Hedge Funds and many more

Fees

No additional costs are charged by Kristal.AI

Exceptional Performance

Funds with an impressive track record and potential for high profitability

Leverage

Benefits from insights of the expert selection and advisory team

Easy Management

No time consuming management of portfolios

Contact our Relationship Manager
TAILOR-MADE PRODUCTS

Customize products based on your market outlook and specific needs across equities, bonds, gold and more.

For investors looking to enhance portfolio yield based on market views.

OVERVIEW

Enhanced Earnings

Structures with potential to enhance portfolio yield based on market movements

Customization

Product features can be designed to articulate investor views

Fees

A flat and transparent fee structure like nowhere else

One-Click Access

A single feature ‘Ideas’ enables you to access recently launched and trending market opportunities

Contact our Relationship Manager
BUILD YOUR OWN KRISTAL

Can’t find what you are looking for? Create your own exclusive investment strategy with risk management & periodic reporting.

For seasoned investors who prefer to design their own portfolio.

OVERVIEW

Empowered Investing

Enables clients to create their own custom portfolio based on their unique needs

Unlimited Choice

Access to all possible exchange traded assets

Flexible Management

Flexibility in delegating the portfolio management role to us or actively taking up the day to day investment decisions, in your custom Kristal

Custom Fee Structure

A simple, transparent and a customized fee structure

Access to Expertise

Custom performance reporting as well as advisory support

Contact our Relationship Manager