You might already know that the Premium Plan works just like telecom recharges. You recharge beforehand and the validity of your subscription lasts until your recharge gets exhausted.

So if you recharge your subscription for y months in one go [in advance], you start getting y% discount every month until the time you exhaust that recharge; with y ranging between 1 and 12.

This means that if your last monthly fee was Rs. 1,000 and you recharge with Rs. 12,000 [to last for about 12 months] in one go, you keep getting a 12% discount on your monthly fee each month, until the time your recharge of Rs. 12,000 gets exhausted.

Sweet deal right?

<aside> ❗ Special Case: when y = 1.

In this case, you are recharging for one month and we give you a 1% discount. But please note that this 1% discount is only applicable if you don’t let your previous recharge expire and recharge before that.

For example, if your previous recharge is going to expire on 31st March, and you plan on recharging just for 1 month, you will get this 1% discount only if you recharge before 31st March end of day [midnight]. If you recharge after this time, you won’t get this 1% discount.

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<aside> 👌 How Recharge Discount and Performance Discount work together.

Doing long recharge months in advance gives you the Recharge Discount. But doing so artificially deflates your post-fee XIRR as well, because I count ‘fees’ as a dead investment done by you, while calculating it. Which means that you earn even more of Performance Discount due to this deflated XIRR.

So by recharging in advance for a long duration, you essentially get a double discount !

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Still need more clarity? Let’s understand it through this example.


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