Form CRS Document
Vested Finance Inc. is a Registered Investment Adviser (RIA) with the Securities and Exchange Commission (“SEC”). Investment advisory services and fees differ and it is important for the retail investor to understand the differences. Free and simple tools are available to research firms and financial professionals at Investor.gov/CRS, which also provides educational materials about broker dealers, investment advisers, and investing.
“What investment services and advice can you provide me?”
We provide retail investors from India, domiciling outside the US, digital investment advisory services to invest directly in select US stocks and exchange traded funds (ETFs) through an interactive web-based investment application. This means that we do not have discretionary authority (we cannot invest on your behalf). Our investment advisory services and execution are delivered exclusively through an online application. Through our digital applications, investors can invest in more than 1,000 stocks and ETFs, and in our model portfolios (called Vests). Furthermore, through our digital application, we provide risk-based investment recommendations tailored to meet your objectives and risk profiles. The application relies on your responses to a series of suitability questions to determine your risk profile and make recommendations. The application does not provide monitoring of your investment nor does it verify any information we receive from you or your agent(s) for accuracy. The application relies on the information you provide to make investment recommendations. You are free to invest as you see fit, overriding the recommendations that the application provides, and you are free to alter your risk profile on the digital application at any time. We do not give retail investors access to the entire US stock market. Detailed information regarding our services, fees and other disclosures can be found in our Part 2A Appendix 1 – Wrap Fee Brochure, which can be found by clicking this link: https://adviserinfo.sec.gov/firm/brochure/299272
Vested Finance does not impose any minimum account balance in order for retail investors to open or maintain accounts with us.
Additionally, we may enter into partnerships with various Financial Institutions that may be registered as investment advisers, banks, or broker-dealers. Under these arrangements, Vested Finance licenses our proprietary web-based technology to the Financial Institutions to serve their clients or other retail investors.
• “Given my financial situation, should I choose an investment advisory services? Why or why not?”
• “How will you choose investments to recommend to me?”
• “What is your relevant experience, including your licenses, education and other qualifications? What do these qualifications mean?”
“What fees will I pay?”
The fees you pay may vary depending on how you access our services. If you become our client directly, then we offer a “freemium” service, where there is no commission charged on trades of stocks and ETFs (see our pricing here). You are, however, still subject to the internal fees and costs of the underlying mutual funds and ETFs as well as an account opening fee and other applicable fees and costs such as wire transfer fees or foreign exchange conversions costs. If you invest in our model portfolio (Vests), we charge a wrap fee of $3USD upfront and 0.5% per year of amount invested in the Vests, which is charged monthly in arrears. This fee includes any transaction costs, custodian fees and any other fees to the broker dealer. Investing in Vests is optional. You can choose to invest in stocks/ETFs without investing in Vests. In addition, there are account opening fees (INR399 or $5.28USD based on current exchange rate which will fluctuate) and other applicable fees (such as wire and FX conversion fees, custodian fees, inactivity fees, and maintenance fees which may vary depending on the bank you use).
If you become our client through our partners, you may pay more (or less) since our partners may offer different additional services than our digital advisory services. These fees are typically tiered asset-based fees ranging from 0.5% – 1.0%. These fees include any transaction costs, custodian fees and other fees to broker-dealer. Fees are paid monthly and are calculated based on the average daily market value of investments. In addition, there are other applicable fees incurred when you fund your account, such as wire and FX conversion fees, which are charged by your bank.
Asset-based fees create an incentive (and therefore a conflict of interest) to encourage clients to invest additional assets with us. For more information, please refer to Item 4 of our Part 2A Appendix 1 – Wrap Fee Brochure, which can be found by clicking this link: https://adviserinfo.sec.gov/firm/brochure/299272.
You will pay fees and costs whether you make or lose money on your investments. Fees and costs will reduce any amount of money you make on your investments over time. Please make sure you understand what fees and costs you are paying.
• “Help me understand how these fees and costs might affect my investments. If I give you $10,000 to invest, how much will go to fees and costs, and how much will be invested for me?”
“What are your legal obligations to me when acting as my investment adviser? How else does your firm make money and what conflicts of interest do you have?”
When we act as your investment adviser, we have to act in your best interest and not put our interest ahead of yours. At the same time, the way we make money creates some conflicts with your interests. You should understand and ask us about these conflicts because they can affect the investment advice we provide you. Here are some examples to help you understand what this means.
Vested Services Private Limited is a wholly owned subsidiary of Vested Finance operating in India. This subsidiary has, entered into revenue sharing agreements with various banks and may continue to do so in the future,. We receive revenue from our partner banks if you wire money through our partner bank to invest in stocks, ETFs, or Vests. Therefore, a conflict of interest exists where Vested Finance has a financial incentive to recommend its bank partner services to clients; however, investors are under no obligation to use the bank services that Vested Finance recommend and may select any bank or custodian of their choosing. As of the writing of this document, Vested Services Private Limited has an arrangement with ICICI Bank Ltd. For more information, please refer to Item 4 of our Part 2A Appendix 1 – Wrap Fee Brochure, which can be found by clicking this link: https://adviserinfo.sec.gov/firm/brochure/299272.
• “How might your conflicts of interest affect me, and how will you address them?”
“How do your financial professionals make money?”
We pay our personnel a salary and bonus based entirely on firm and individual performance. Personnel do not sell products or receive commissions, and compensation is not based on the amount of managed assets, the time or complexity required to meet a client’s needs, or revenue the firm earns from the financial professional’s advisory services or recommendations.
“Do you or your financial professionals have legal or disciplinary history?”
No. Please visit Investor.gov/CRS for a free and simple search tool to research us and our financial
• “As a financial professional, do you have any disciplinary history? For what type of conduct?”
You can access our Form ADV Part 2A at https://adviserinfo.sec.gov/firm/brochure/299272. Please contact us at (+91) 80 6179 0003 if you would like additional information or a copy of this summary.
• “Who is my primary contact person? Is he or she a representative of an investment adviser or a broker dealer? Who can I talk to if I have concerns about how this person is treating me?”