Category: Software Features

The Family Office is a concept from the West where the management and investment decisions for a single wealthy family occur centrally. Although we don’t call them Family Office’s in India, most families are run like Family Office’s since the investment decisions affect the entire extended family. When we designed MProfit we took a look at the India Family Office concept and made it a central part of the software via our Groups feature. Our grouping feature allows you to aggregate all your individual personal portfolios into a single group view. This single group view is similar to how most Indian families view their portfolios as a single portfolio and not just individual portfolios.

The Grouping feature is very powerful when you create reports within MProfit. One example is the Group Asset Allocation report for Stocks, with this report you can easily see where you major stock holdings are for your entire family. Without the Grouping feature you would have to manually figure out each individual’s stock allocation and the add them together in Excel…not very efficient or easy. With MProfit, it takes just one click to generate the report.

Overall, MProfit is actually a Family Office software solution for Indian households and our easy to use interface is the perfect way to manage all your assets. Other family (group) features:

• Consolidated view of entire family (group) networth
• Create and manage multiple family (group) portfolios in various combinations of your individual portfolios
• Group Annualised Return (XIRR) for any asset, asset category or family portfolio
• Group Holding report which gives you detailed holdings for group members
• Asset Allocation report for the entire family (group)
• Due Date report for the entire family (group) for insurance premium payment, maturity and lock-in

We have updated our Reporting Overview video to reflect the new reports and the changes to some existing reports. MProfit has 5 main categories for reports: Analytical, Transaction, Capital Gains, Accounts and Miscellaneous.

We could tell you more, but it’s probably better if you just watch the YouTube clip below:

The financial year 2009-10 is over and in the next several months most of us will be filing our income tax returns. If you invest in stocks and/or mutual funds, you will need to prepare the capital gains calculations for your short-term and long-term gains for stocks and mutual funds. Also, if you have any intra-day profits/losses for stocks you will have to calculate those gains as well.

MProfit provides various simplified reports for capital gains calculations. MProfit follows the First In First Out (FIFO) method for calculating capital gains. MProfit provides a summary as well as transaction wise capital gains reports. Capital gains reports are listed separately for equity mutual funds and debt mutual funds.

MProfit calculates and adjusts capital gains calculations based on corporate actions such as merger, de-merger and split and bonus.

Below are several articles which explain in detail how MProfit handles capital gains calculations.

Capital Gain Calculations for Shares (Stocks)
http://www.mprofit.in/2009/07/capital-gain-calculations-for-shares-stocks/

Capital Gain Calculations for Mutual Funds (MF)
http://www.mprofit.in/2009/07/capital-gain-calculations-for-mutual-funds-mf/

A video tutorial on Capital Gains Reports
http://www.mprofit.in/2010/03/capital-gains-reports/

Lastly, MProfit not only calculates capital gains post sale, MProfit has a feature called Tax Calculator.  The Tax Calculator can help you determine your short-term and long-term capital gains and the amount of tax payable before you decide to sell your stocks or mutual funds.

One the biggest benefits of using MProfit is our reporting capabilities. You may find other services available on the internet but most cannot compete with it comes to reporting. We provide over 45 types of reports and are adding new ones based on customer feedback.

We have 5 main categories for reports: Analytical, Transaction, Capital Gains, Accounts and Miscellaneous.

We could tell you more, but it’s probably better if you just watch the YouTube clip below:

A continuing series that describes how MProfit handles specific asset classes and how you can benefit from it.

There are many product that manage Mutual Funds, but none are as powerful as MProfit. Whether you have equity or debt mutual funds…we can manage it. You can choose from the 1000s of mutual funds, Exchange Traded Funds (ETFs) and Fixed Maturity Plans (FMPs) to manage. With our unique Group view, you can aggregate and view your entire family’s portfolio. Some of the features are below:

• NAVs are automatically updated via the internet and reflected in your mutual funds holdings
• Capital Gain tax reports are printed separately for Equity MF and Debt MF
• Transactions in MF are categorised as subscription (buy), redemption (sale), dividend reinvestment and bonus units
• Provision for details like folio number, lock-in period, agent name and reminder alert for lock-in period
• Record for dividend pay-out for MFs
• Balloon notification displays folio number, lock-in period and Agent name (when your mouse is rolled over the MF name)
• Tax Calculator to help identify short-term and long-term gain and calculate the tax liability before you redeem (sell) MF units
• Generate past SIP entries through one form
• MF holdings can be viewed alphabetically or by current values
• Group (Family) portfolio will give you the consolidated view your entire family’s MF holdings. You can view the details of how many family members are holding one particular fund with details like quantity, purchase value and current value.

Reports

Wait, there is more.  Where MProfit really shines is it’s reporting engine (it’s like a Ferrari!). The Group (Family) portfolio reports such as MF portfolio summary, asset allocation in mutual funds, group holding reports and annualised returns (XIRR) are very important reports to help you make the right investment decisions.  Overall, the report feature list is quite impressive:

• MF portfolio pummary with overall gain percentage gain
• Asset allocation with pie chart showing percent holding with respect to MF assets and overall assets
• Annualised return (XIRR) reports for individual scheme as well as for all your MFs
• Realised and unrealised gain for MF schemes
• Various transaction reports such as Date wise, scheme wise as well as buy, sale and dividend re-investment transactions
• Short term capital gain reports for equity and debt MFs in various formats
• Closing balance report for MFs to reconcile with books of accounts

Go ahead and download a FREE 30 day trial and see for yourself.

A continuing series that describes how MProfit handles specific asset classes and how you can benefit from it.

The current and maturity values for bonds are calculated based on the interest rate, frequency of interest payout and cumulative or payout option.

The current and maturity values of remaining bonds will be adjusted when you sell some bonds from your total holdings. The closing balance of bonds will be calculated based on the original purchase price and the remaining quantity. This balance cost will match with the balance in your books of accounts.

You can add transactions to your existing bond investments. The terms related to interest rate, frequency of interest pay-out, cumulative or pay-out options and maturity value will remain the same as original first investment. The current values and maturity values will be adjusted based on subsequent purchases.

There is also an option to add transactions related to interest payout, which will not have any affect on the current or maturity values. This transaction is helpful in computing the total gain from the investment and when calculating your annualised returns (XIRR).

You can decide to calculate the values of bonds based on two options:

1)    Set the value based on the interest rate

2)    Set the value by manually adding the bond price

The option to add cumulative interest is provided via the bonds transactions screen. Investors may want to pass this entry for tax calculation purposes. The accrued interest up to 31^st March can be passed as a cumulative interest entry in MProfit.

MProfit is designed in such a way that there will not be any difference in current and maturity values of bonds even if you pass the cumulative entry at the end of any period.

Lastly, you can set the alert for the lock-in period (if any) as well as the maturity date for your bonds.

A continuing series that describes how MProfit handles specific asset classes and how you can benefit from it.

The current value and maturity value of bank fixed deposit’s (FDs) are calculated based on the interest rate, frequency of interest payout and cumulative or payout option. MProfit has provided the option to enter transactions for partial withdrawals to take care of FDs which are linked to your bank accounts. If partial withdrawal has occured, you will need to enter the principal amount as well as the interest payout (optional) on this withdrawal.

The assumption is that the bank pays out interest on this partial withdrawal. Usually bank gives less interest for partial withdrawal as opposed to holding the FD till full maturity. After a partial withdrawal, MProfit will calculate daily gain, overall gain, current and maturity value based on your balance principal amount with the same terms of your original FD.

MProfit has provided the option to add cumulative interest in terms of FDs. Although, banks do not show this entry in their FD statement, investors may want to pass this entry for the tax calculation purposes. The accrued interest up to 31st March can be passed as cumulative interest entry in MProfit, so as to tally the balance with the books of accounts. MProfit is designed in such a way that there will not be any difference in current and maturity value of this FD even if you pass the cumulative entry at the end of any period.

Lastly, you can set the alert for the lock-in period (if any) as well as the maturity date for FDs created in MProfit.

Unit Linked Insurance Plans (ULIPs) are very complex products from the data management perspective. There are more than 25 insurance companies and each has many ULIP products and each ULIP product has 4 to 8 associated funds. ULIP holder can switch between the funds and the units are reduced to recover the mortality charges and other charges. We currently do not provide the NAV of each ULIP product. We will try to incorporate the same in future if we find it feasible.

In spite of the complexity, we have tried to provide the complete ULIP management module in MProfit. We believe that each investor would have one or two ULIP products to manage in his portfolio. How data should be entered and managed for ULIP products in MProfit is explained below in details.

Once you create the ULIP plan manually, fill out all the details about your policy (one time) and you can create the associated funds by going into Edit Fund Allocation. You can create the funds as per the plan you have chosen.

There are couple of ways you can set the current policy value to be reflected in your net worth summary.

Go to Transaction list of ULIP product and Click on the Set Current Value button and choose the appropriate option.

a) Periodically, (suggested monthly), you can go to Transaction List and Click on Other Transactions and click on Edit Fund Allocation and change the Quantity of units and NAV of your funds. The policy value will be calculated based on these data.

b)     Second option is to calculate the policy value as per the total premium paid – withdrawal (Use Set Current Value feature)

c)      Third option is to set the policy value manually. You can directly enter the policy value periodically (say monthly) based on the statement of your ULIP policy and this will be reflected in your net worth of your portfolio (Use Set Current Value feature). You do not need to enter the fund details and this is the simplest method to capture your policy value to be included in your net worth.

ULIP products are very long term in nature and we recommend them to update the policy value every month as per the statement of your ULIP policy based on your choice of setting. By doing this, you can almost capture the true value of your ULIP investments in your net worth summary.

You can manage the Unit Linked Pension Plans in the same manner, which will be without insurance details.

You can add all Exchange Traded Funds (ETFs) in MProfit. ETFs fall under the category of Mutual Funds.

A Mutual Fund/ETF scheme is classified as an equity-oriented scheme if it has holdings in the equity of domestic companies, amounting to 65 per cent or more, on an average, during the year. A scheme that does not fulfil this condition is considered as a debt-oriented scheme. All Gold ETFs fall under Debt MF category.

Some of the ETFs listed in MProfit are

• Gold Benchmark Exchange Traded Scheme (Gold BeES)
• Reliance Gold Exchange Traded Fund-Dividend Payout Option
• SBI GOLD EXCHANGE TRADED SCHEME
• UTI GOLD Exchange Traded Fund
• Liquid Benchmark Exchange Traded Scheme (Liquid BeES)
• Nifty Benchmark Exchange Traded Scheme- Nifty BeES
• Nifty Junior Benchmark Exchange Traded Scheme (Junior BeES)
• Sensex ICICI Prudential Exchange Traded Fund
• PSU Bank Benchmark Exchange Traded Scheme (PSU Bank BeES)
• Banking Index Benchmark Exchange Traded Scheme (Bank BeES)
• Reliance Banking Exchange Traded Fund-Dividend Option

Many of the users have asked us how they can compare their own individual portfolios as well as family (group) portfolios for different periods.

One of the easiest way to do this is to save asset allocation reports for individual portfolios and group portfolios in pdf or excel format, say monthly or quarterly. You can then always compare your portfolio values of past and current date.

You need to go to Analytical Reports and select Asset Allocation Reports. In stead of printing this report, you need to click the ‘Save’ button on the top panel of your report window. Select the format in which you want to save your reports and save it with the appropriate name ending with date, for e.g. Name1-NetWorth-31-Mar-2009, Name2-NetWorth-30-Jun-2009. Once you do that, it would be extremely easy to compare your net worth reports for different dates. Please let me know if you have any suggestions or better ideas.