View the entire Frequently Asked Questions (FAQs)

How do you determine the cash component in my portfolios?

QuietGrowth does not believe in keeping a portion of the portfolio in cash in order to purchase securities at the "right time", because we believe it is almost impossible to time the markets consistently. That said, though QuietGrowth wishes to invest all the money you deposit to purchase the funds, we keep aside a small amount of uninvested cash in each of your portfolios for various reasons.

One reason is that we purchase only whole units of ETFs for you. This results in some amount of cash being left out.

Another reason is that we ensure sufficient cash is available to pay the QuietGrowth fee charged every month for at least one year. As the QuietGrowth fee is calculated based on the portfolio value, and we cannot predict the future portfolio value, the amount of cash we keep aside for this purpose is an approximation.

One more reason is that even though QuietGrowth absorbs the trading costs incurred to purchase funds and does not charge the client for the trading costs incurred, we are mindful of these costs too, and hence we execute a buy trade only when that trade’s dollar amount is meaningful.

Also read the answers to the related questions:

• Is there a minimum amount that I should deposit as a top-up before you invest the cash in the portfolio in the market?
• Do I earn interest on the cash in my cash account?