Manage your family office with MProfit

The Indian family office

A family office is an organisation that manages investments and trusts for one or many high net-worth families. Family offices are of two types: single family offices (SFOs) and multi-family offices (MFOs). While families of high net-worth individuals (HNIs) often use services provided by wealth managers and private bankers, they often utilise their own in-house teams to manage investments. India has many large family offices including Azim Premji’s PremjiInvest, N. R. Narayana Murthy’s Catamaran and the Ambani Family Office.

A large number of family-run businesses have similar investing needs as large family offices. However, they usually do not use only a single entity for wealth management, relying instead on multiple financial advisors, stock brokers and private bankers. This poses challenges to decision-makers in the family when trying to adhere to the following portfolio management best-practices:

  • Aggregation of all investment transactions from multiple disparate statements
  • Tracking of portfolio performance across financial advisors as well as at a consolidated level
  • Calculation of capital gains for stocks, bonds, equity mutual funds and debt mutual funds (with & without indexation)
  • Accounting, which is often done separately resulting in duplication of effort

MProfit’s integrated portfolio management and accounting solution for family offices

Having devoted considerable time and resources to understanding the investment management challenges faced by Indian families, MProfit has perfected an integrated solution that addresses each challenge. Ever since we launched MProfit, the Indian family office has been central to our software and we now have many marquee family offices and family-run businesses as clients.

MProfit’s primary value-add is our grouping feature that allows users to aggregate portfolios across various entities/individuals into a single group view. This is particularly important to Indian families as they prefer to track and review the performance of the entire family’s consolidated portfolio. Additionally, we offer the following key functionality that has helped make MProfit a stand-out solution for large family offices as well as other family-run businesses:

  • Import of all financial transactions from single or consolidated files
  • Import support from over 2,300 different sources across digital contract notes, mutual fund statements and bank statements in various formats
  • Import support for various disparate formats such as PDF, HTML, Excel, CSV, DBF and Text
  • Ability to create and manage multiple family (group) portfolios, with the option to group across various combinations of individual portfolios
  • Comparison of performance returns across various financial advisors
  • Consolidated view of family net-worth
  • Capital Gains Reports for stocks, bonds, equity mutual funds and debt mutual funds (with & without indexation) (Read more here)
  • Annualised Return (XIRR) for any specific asset or asset category, both at the individual and family level
  • Holding Reports displaying detailed holdings for individual family members or the entire group
  • Asset Allocation Reports for individuals or the entire family
  • Due Date Reports for the entire family that track insurance premium payments, maturity dates and lock-in periods

MProfit, a very reliable and user friendly solution – Sendhil Madhivathanan, PenguWIN Wealth Management Consulting

PenguWIN® Wealth Management Consulting and PenguWIN Investment Services are professionally managed firms headed by Sendhil Madhivathanan and Sathya Sendhil. They have been using MProfit Advisor to manage clients’ portfolios for the past three years.

Here is Sendhil’s review about MProfit:

“I have been using the 200 users Advisor Version of MProfit for close to 3 years now. I have an IT background working for Software multinationals and have implemented Enterprise systems including Oracle, PeopleSoft and JD Edwards. The first thing that impressed me about MProfit is the reliability factor. Even Enterprise systems throw errors and shut down forcibly. But this has never happened with MProfit and this speak volumes about its reliability.

The User Interface and Reports are very impressive and though it has some limitations in terms of data generated from advisor’s perspective, end users (our investors) love this Software and it is almost impossible for me to convince users to move to other platforms, including cloud based Architecture software. MProfit has an Android version too, that is used by many of PenguWINs investors and are very happy.

On the support front too, MProfit scores well and the support team has always been accessible. I have leveraged only a part of MProfit’s functionality and am slowly exploring the other features. End user help provided within the application is one area where MProfit can add more value. I have heard that MProfit is working on a cloud based architecture, which can remove the issue of a client footprint sitting on an investor’s laptop. I am extremely satisfied with MProfit and my sincere wishes to the MProfit Team”

Import your Bank Statements with MProfit

bank-importMProfit offers several features to help investors better manage their investments. In addition, MProfit also offers an integrated accounting module that auto-creates accounting vouchers and ledgers from investment transactions. This helps investors quickly and effortlessly complete preparation of an entire year’s accounts. MProfit’s accounting module has been very popular and we have been continually enhancing it based on user feedback.

Traditionally, users have always had to manually enter transactions from their bank statements into external accounting software. MProfit has eliminated this tedious process by auto-creating vouchers and ledgers as well as enabling the effortless import of statements from a vast majority of banks in India. Bank statements (monthly or yearly) in various formats such as PDF, Excel, CSV and text format can be imported into MProfit. Banks supported include HDFC, ICICI, IDBI, Kotak Mahindra, Karnataka Bank, State Bank of India, Citibank, Canara Bank, Andhra Bank and many more!

To check if your bank or broker is supported, please visit our import page. If your bank or broker is not listed, please call us at 022-40024149 or email us at support@mprofit.in and we’ll surely add them to our list.

MProfit now supports import from more than 2,200 formats across digital contract notes, mutual fund statements and bank statements. Check out MProfit today by downloading it here!

 

Capital Gains Calculations simplified with MProfit

cap_gains_taxes

If you are looking for the most accurate and easy way to calculate your capital gains, you have come to the right place. If you invest in stocks, traded bonds or equity/debt mutual funds, you likely need to calculate capital gains for your intra-day, short-term and long-term investments. MProfit helps make this calculation process effortless for you.

You simply need to import a digital contract note received from your broker or mutual fund statement into MProfit and our software will take care of the rest! MProfit follows the First-In-First-Out (FIFO) method for calculating capital gains and also adjusts capital gains calculations based on corporate actions such as mergers, de-mergers, splits and bonus in accordance with income tax rules. After automatically performing all your capital gains calculations, MProfit also prepares reports in various formats to help you understand your capital gains.

With the simplicity and accuracy offered by MProfit, it is no surprise that MProfit is the preferred choice for everyone in the Indian investing community including Investors, Financial Advisors, Family Offices and Chartered Accountants.

Examples of the capital gains reports provided by MProfit include:
1. Summary reports (with period-wise computation for advance tax calculation)
2. Detailed transaction-wise reports
3. Debt mutual funds reports with and without indexation

MProfit further helps you understand your capital gains right before you sell your stock or mutual fund units by providing the following information:
1. Computation of unrealized capital gains
2. Holding reports (displays the number of days of your holdings from the purchase dates)

Below are several posts that explain in detail how MProfit handles capital gains calculations. Click the links below to know more:

Capital Gain Calculations for Shares (Stocks)
Capital Gain Calculations for Mutual Funds (MF)
A video tutorial on Capital Gains Reports

Also, if you don’t find your broker’s name in our list, do let us know at support@mprofit.in and we’ll make sure we add import support for your broker’s digital contract notes.

Download a free version by clicking the link here.

Manish Jain, Co-founder, MProfit as speaker at Fintegrate 2017 event

February Newsletter

MProfit wishes you a prosperous 2017!

2016 has been quite a year to remember not because of the US elections, but because of what else happened that day… the demonetization of the Rs. 500 and Rs. 1000 rupee notes. Within hours of the announcement Prime Minister made it impossible to use large notes. It was a very positive move for the financial markets as most of the money would come back into the banking system. The positive effects will be felt for many years to come.In addition, it was also an extremely productive year for MProfit. With a series of new features, reports and improvement in 2016 as well as unmatched customer support, we continue our path in 2017 to make MProfit, India’s leading portfolio management & accounting solution. Below is a quick summary of new features & reports implemented:

New Features

Reached the milestone of supporting import from 2000 formats (PDF, HTML, Excel, Text, DBF)
Import support for auto-mapping using ISIN numbers for many broker’s contract notes
Live prices (End of Day prices) of traded bonds on NSE and BSE in capital market segment
Import support for the new format of the Consolidated Account Statement from CAMS
Create Mark to Market profit/loss in F&O which can be reconciled with broker’s ledger

New Reports

Capital Gains of traded bonds
‘Bank & Broker’ report to see banks and Broker’s balances for one or all families
Contract notes summary and detailed report to view contract notes of all families
Asset Holding – Closing Balances
Family – wise global transaction report
Capital gain calculations of all families under one report
Closing Balance report for one family or all families under one report
New XIRR report with Quantity
Stocks & Mutual Fund transactions register

Capital Gain Calculations for Mutual Funds (MF)

MProfit generates separate capital gains reports for Equity MFs and Debt MFs because taxation rules vary for each type. You can also generate two separate reports with indexation and without indexation for Debt MFs (Liquid funds, Income funds, FMPs and Gold ETFs). We give a quick overview of how MProfit handles these calculations and how you can easily generate mutual funds capital gains reports using MProfit.

Getting started:

  • If you are an individual investor, all you need to do is import (upload to MProfit) the consolidated account statement sent by CAMS. This statement includes all types of transactions related to mutual fund schemes managed by CAMS, Karvy and Franklin for your entire family. Most mutual fund schemes are covered under this statement. Click here to learn how to request this file.
  • If you are a financial advisor, you need to import the CAMS WBR2, Karvy 221 and Franklin back-office files which contains mutual fund transactions for all your clients. Click here to learn how to request these files

Here are the MF capital gains calculation methodology that MProfit follows:

  • MProfit follows the First in First Out (FIFO) method for capital gain calculations
  • In the event of consolidation or splitting of units of mutual funds, MProfit automatically calculates capital gain reports based on the adjusted purchase prices. MProfit also takes care of Dividend Reinvestments when calculating capital gains as follows. Dividend Reinvestments are considered as new buy transactions for that particular scheme. When you sell (redeem) units, all new subscriptions (buys) and dividend reinvestment transactions are taken into account and short term and long term capital gains are calculated as per the FIFO rule
  • MProfit also accurately computes capital gains for Switch-In, Switch-Out, STP-In and STP-Out transactions as per income tax rules. STP-In/Switch-In are considered as “buy” transactions in one scheme and STP-Out/Switch-Out are considered as “sell” transactions in another scheme

Here is an example demonstrating how MProfit handles capital gains calculations for MFs:

Date Type

Units

NAV

Amount

Short Term Capital Gain

Long Term Capital Gain

10-Apr-15 Buy

1,000.00

10.00

10,000.00

   
25-Apr-15 Dividend-Reinvestment

100.00

11.00

1,100.00

   
15-Dec-15 Sell

1,050.00

15.00

15,750.00

5,200.00

 
02-May-16 Sell

50.00

20.00

1,000.00

 

4,50.00

Note: the dividend reinvestment of 100 units with a NAV of 11.00 on 25-Apr-15 is characterized as a new buy transaction.

Capital gain/loss calculation on 15-Dec-15:

  • Total redemption (sale) value = Units ´ NAV = 1,050 ´ 15 = 15,750
  • As per FIFO, 1,000 units bought on 10-Apr-15 and 50 units bought on 25-Apr-15 are sold on 15-Dec-08
  • Total cost = (1,000 ´ 10) + (50 ´ 11) = 10,550
  • Capital gain = 15,750 – 10,550 = 5,200
  • The redemption of all 1,050 units took place within 12 months of subscription (buy) so the 5,200 capital gain is characterised as short term

Capital gain/loss calculation on 02-May-16

  • Total redemption (sale) value = Units ´ NAV = 50 ´ 20 = 1,000
  • Total cost = 50 ´ 11 = 550
  • Capital gain = 1,000 – 550 = 450

The redemption of these 50 units took place after 12 months of subscription so the 450 capital gain is characterised as long term

 

Capital Gain Calculations for Shares (Stocks)

MProfit automatically creates capital gains reports after users import digital contract notes of stocks or manually enter buy/sell transactions. These include Intra-day Profit/Loss, Short Term Capital Gains and Long Term Capital Gains reports. Advanced reports showing unrealised capital gains as well as the holding periods for stocks are also available in MProfit and they help investors learn what their capital gains liabilities are before deciding to sell their shares. MProfit does have an advanced feature to allocate charges to the purchase value and sale value of each stock in contract notes and this reduces the capital gains tax liability for the investor.

Below is a detailed explanation about how MProfit handles these capital gains calculations.

  • MProfit follows the First In First Out (FIFO) method when computing capital gains
  • Buy and sell transactions of the same stock in the same contract note of the same date are considered as intra-day transactions
  • A capital gain/loss will be characterized as short term if the stocks are sold within one year from the date of purchase and long term if the stocks are sold after one year from the date of purchase

In addition, MProfit also adjusts capital gains calculations for corporate actions including Bonuses, Splits, Mergers and De-mergers for any stock. Capital gain calculations are adjusted automatically based on these corporate actions in accordance with the income tax rules effective on the date of the action.

Please read below for detailed information about how MProfit handles long term and short term capital gains calculations following each corporate action.

Bonus:

  • The new bonus shares are considered to be purchased at zero value and the effective date of the bonus is treated as the purchase date for capital gains calculations
  • The old shares are treated as the same value as they were before bonus, with no change in purchase price or date
  • Upon sale of shares of this company, first the previously held shares are sold in accordance with the FIFO method and only then are the bonus shares sold
  • If bonus shares are sold within one year of receiving the bonus, the gain/loss is treated as a short term capital gain

Split:

  • A split only leads to a change of the purchase price for capital gains calculations while the date of purchase remains the same
  • The new adjusted price will be used in capital gains calculations and is displayed in the capital gains reports as well as the closing balance report

Merger:

  • The new merged company will retain the old purchase date of the original company and the purchase price will be adjusted based on the merger ratio

De-merger:

  • The effective date of purchase for the new company will be the same as the original purchase date for the parent company from the perspective of capital gains calculations
  • The purchase price for each new company will be automatically adjusted in capital gains reports as per the allocated amount for each company following the de-merger

New Online Help Desk

At MProfit, we are constantly looking for ways to improve our support for customers.  The latest feature we have added is an online help desk (forums) which will allow you to search for any issues or problems you may be experiencing.  Of course, you can always email us at support@mprofit.in as well.

Our new online help desk is located at http://support.mprofit.in/

Take a look and let us know what you think.

New v9.5 released

left-facing-boxLast week we released v9.5 of MProfit which packs many new features and fixed several older issues. Below is a complete list of all the new features, reports and enhancements.

New Features
– Create Mark to Market profit/loss in F&O which can be reconciled with broker’s ledger [Click to learn more]
– Settlement of all open expired contracts [Click to learn more]
– Import support for the new format of the Consolidated Account Statement from CAMS
– Import support for auto-mapping using ISIN numbers for many additional brokers’ contract notes

New Global Reports (Pro & Advisor Version)
– ‘Bank & Broker’ Report to see banks and Brokers’ balances for one or all families
– Transaction Reports, CN Summary and Detailed to view contract notes of all families and search any Contract note with contract no or Settl. No
– Closing Balance Report for one family or all families under one report
– Asset Holding – Closing Balances

Improved Reports
– Capital Gain Summary report – Added filter to see only intra-day, short term or long term gains
– Ledger Printing Report – Option to exclude stocks, MFs & traded bonds
– Closing Balance report, added two more columns, Curr. Price and Curr. Value
– Holding Report, added three more columns, Curr. Price, Curr. Value and Gain/Loss
– Display of current value of assets with Lock-in Period entry in due date report
– Trading Profit/Loss report of past date will show valuation of the respective date

Bug Fixes
– Fixed bug related to Capital gain for Transfer-In with IPO and Bonus
– Fixed error in Transaction report with Bonus and Split
– Fixed clubbing of buy transactions entered separately on same day in capital gain report for income tax report, now it shows individual entries
– Fixed error in report of Debt MF with Indexation if internet is not connected

Click to the see the full version history of MProfit.