This is the discount you get based on the performance of your investments.

Here’s the formula by which this discount gets applied:

$$ PD=[(100/z)-5] $$

where -

z = post-fee XIRR [your portfolio’s annualized return AFTER subtracting our fees] for the current month.

Max limit to PD is 15%.

The table below explains all cases -

XIRR [post-fee] % Performance Discount
< 5% 15%
5% 15%
6.66% 10%
10% 5%
12% 3.33%
15% 1.7%
20% 0%
> 20% 0%

Variation of PD with z

Variation of PD with z

So basically it’s our performance which is at play here - if we do a bad job, you get more discount. This pushes us to be on our toes, while gives you another reason to stick with us.

The money you save with this discount - you can invest that back, growing your corpus more.

Still need more clarity? Go through this example.

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