FAQ
Know more about KOFFi
YOUR MONEY NEVER RESIDES WITH US. We aim to provide you with the technology platform to connect with the safest rated financial products where your money will be held by the trusted fund houses like TATA & SBI. The financial products that are offered by KOFFi have been traditionally used by large corporations to keep their short-term funds.
Similar to fixed deposits, curated options provided by the KOFFi are linked with RBI interest rates, but with the added benefit of earning on your daily balances. This makes our fund selection perform much better in short-term as compared to FDs. Additionally, tax friendly and zero penalty options help you maximize yield for your money.
Options in KOFFi like Arbitrage funds are taxed at 15%, as opposed to 30% on traditional instruments like fixed deposits & savings accounts.
In KOFFi, your returns are only taxed when they are realized. Whereas in FD, tax is applicable every year irrespective of the realization.
Arbitrage mutual funds offer lowest risk, since they aim to profit from the known price difference, rather than betting on unknown price movements. For example, a fund manager buys a particular asset priced at ₹90 in Market A and instantly sells the same in Market B, where the price is ₹100, thus making an instant profit of ₹10.
Arbitrage funds enjoy a lower tax rate of 15%.
It’s a volume game for us, as the commission we earn from our trusted partners is miniscule. Behind the scenes, we work relentlessly to provide you the platform and choices that ensure your funds are safe, growing and available whenever you need them.
While the scheduling of a payout sounds simple, there are various attributes like cut-off time, bank settlement time, holidays etc which makes it complex. Just give us a date and KOFFi will take care of all these complexities to ensure your money is available in your bank account on that date.
KOFFi is a short-term fund parking platform where along with financial products, we plan to offer various tools to organize funds and manage cash-flow.
While we began with mutual funds due to their suitability for our primary use case, our long-term vision encompasses a broader range of secure financial products including T-Bills, Commercial papers and more.
A debt fund is a mutual fund scheme that invests in diversified AAA rated financial instruments such as government and corporate bonds and securities that offer steady capital appreciation.
A few major advantages of investing in debt funds are high liquidity, safety, low cost structure and better returns in the short term.
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