What is Truehedge ?

Truehedge is India's most advanced end-to-end digital ecosystem for Fractional Ownership. It gives investors affordable access to income generating institutional-quality investment properties, managed by experienced professionals with a proven track record.

What is Fractional Ownership?

Fractional ownership in real estate is a term used to describe when a number of investors join together to invest in a real estate asset so that all of them can benefit from a share of the income that the asset generates, and any appreciation in the value of the property.

Who can invest with Truehedge?

Any Indian citizen or an NRI can invest with us. Investments from institutions are also accepted. Before proceeding with your investment, it is imperative that all standard regulations are followed. Please contact ----------------for any related queries. Note for NRI investors : NRI investors can only invest through an NRO Account or from a normal savings bank account in India. We cannot accept payments from NRE Account or in FDI.

How do I get started as an investor with Truehedge ?

You can join the platform by clicking on the 'Login ' or 'Invest now' buttons on our website. Once all the details are filled out and KYC is verified, the journey of your investment starts with us.

What are the KYC documents needed to sign up with Truehedge ?

We require copies of the following documentation.

PAN Card

Address Proof (Aadhar/Driver's License/Passport).

A cancelled cheque leaf with the name printed.

Your 16 digit demat account number.

Why does Truehedge focus on rent yielding real estate?

We believe that rent yielding real estate, if researched thoroughly and conservatively, offer the best after-tax returns , Stable Cash Flows , Capital Preservation and Diversification.

How can I diversify through Truehedge ?

Users can diversify by participating in transactions across geographies, tenants (technology, financial services) and asset classes (retail, office, warehousing).

How does Property Share shortlist properties?

Our team examines various metrics like rental yield, location, tenant, lease duration, quality of asset, scope of capital appreciation, micro and macro market indicators, legality of title and earning potential. We rely on the extensive experience of our team and data analytics to identify properties that can ideally maximise returns for our investors.

What if something goes wrong with Truehedge ? Is my investment safe ?

Truehedge is an online investment platform and your ownership structure is designed in such a way that the ownership is not dependent on anyone. Your ownership, governance and compliance records are stored in public databases and in government records. Your investment remains absolutely secure.

Is investing in properties listed on the platform risky ?

Yes, as with any real estate investment, a listing on the platform carries inherent risks of loss of capital. Please consult your financial advisor before making any decision.

Should I engage with an attorney or lawyer ?

All legal due diligence is taken care of by us on your behalf and there is no need to engage with an attorney or lawyer. If you do wish to engage a legal resource, we will be happy to answer any questions they may have.

How do you keep my personal information secure ?

The security of our platform and privacy of all your data is our utmost priority. Truehedge platform is built keeping the best-in-class security and privacy features in mind. All your data is hosted on secure cloud networks and all sensitive client data is encrypted and stored with 256 bit SHA encryption. Also, Truehedge will never share your data with any third party. For more details, please refer to our privacy policy.

What is the minimum investment ?

The minimum investment is as per the lowest unit cost of the property and varies from property to property. Please refer to the individual property pages to find the minimum investment price.

What happens if a property fails to be fully funded ?

If for some reason a property on our platform doesn't complete its funding target, any funds that have been committed by investors will be reimbursed to the registered bank account.

How are the investments structured ?

Investments are structured as private limited companies. For each investment, a Specific Purpose Vehicle (SPV) is created in which funds are raised to own and manage the property. As an investor you will own shares of the SPV holding the property and represent your investment. Truehedge assumes responsibility for oversight, reporting, and major decisions on behalf of the investors.

What is an SPV ?

Property investments are owned by a private limited company designated as a 'Specific Purpose Vehicle', or SPV. Any investments on a particular property will be owned by an SPV setup for this specific purpose.

What is the investment process ?

Once your account is KYC verified, you can invest in any property listed on our platform wherein you'll need to e-sign a binding Expression of Interest and transfer the initial token advance of your investment amount to your virtual account (which Truehedge will create for this purpose) to block your investment. Once a property has been fully funded, you will be required to transfer the remaining amount into your virtual account. Your amount will then be transferred to the SPV account and the SPV will proceed to purchase the property. The ownership and property management agreement will be shared with you and once you approve and execute it, the investment is finalized along with details of your shareholding in the SPV.

What is Expression of Interest?

An Expression of Interest (EOI) is the initial transaction document which outlines the terms and conditions of the investment.

What kind of information is provided online regarding the investment opportunity?

Information pertaining to property, title, market analysis, financial analysis, legal diligence, valuation reports, etc are provided. Investors are also presented with the risks associated with the investment. One needs to invest as per their risk appetite and should seek professional advice before making an investment decision.

Will I need to travel to the location of the property or such ?

No you will not need to travel. All required documentation will be signed digitally via DocuSign.

What happens if I want to withdraw my initial token advance?

Once an initial investment or token advance is paid, it cannot be refunded as per the Expression of Interest which the investor has signed. Only if the property’s funding is incomplete, Truehedge will reimburse an amount back to the investor's registered bank account.

What kind of documentation will I need to sign?

You will sign an Expression of Interest, Ownership Agreement, and a Property Management Agreement with Truehedge. All these documents will only require a digital signature and no physical copies will have to be sent. This makes the process faster, transparent, and convenient.

What are Truehedge fees?

We charge an annual property management fee of in the range of 0.5% - 1% and a performance fee of 10- 20% above a hurdle rate of 8% on capital appreciation at the time of sale of the asset. The annual property management and performance fee may differ based on the property listed. The management fee is a monthly charge on gross rent and is designed to cover the management of the SPV and its assets whereas the profit share/performance fee is payable on exit. This has been designed to reward investors should the investment offered by us prove to be successful for the investor. For e.g. If a property is bought for Rs. 1,00,000 and the investor makes Rs. 1,08,000 at the time of sale, we do not charge any performance fees. If for the same property the investor makes Rs. 1,15,000 we charge a 20% fee on Rs.7,000 (1,15,000 - 1,08,000) i.e., Rs. 1,400. This way our fees are aligned with investor returns.

Are investors allowed to see rental agreement?

Yes. The Lease/Rental Agreement is shared with the investors.

What are the risks associated with these investments?

There are various risks associated with your fractional investments such as liquidity, tenant, and market risk.

Is investing in properties listed on the platform risky?

Yes, as with any real estate investment, a listing on the platform carries inherent risks of loss of capital. Please consult your financial advisor before making any decision.

What sort of returns can I expect?

Truehedge does not guarantee any returns on the assets listed on our platform. However, our expected returns are 14-20% IRR over a period of 5 years.

Is there any lock-in on my investment?

Yes there is an initial 6 month lock-in from the time the property is funded. You are free to sell your holdings post that.

When is my investment process complete?

Your investment is completed as soon as the property is fully funded by other co-investors.

When & how will I receive my returns?

Typically, the distributions are made on a monthly or quarterly basis .

Why do you need Demat account?

Debentures issued in a Private Limited company SPV setup, as per SEBI norms, the instruments need to be credited in demat form.

Are there any tax deductions on rental returns?

Yes. Truehedge deducts a 10% TDS before remitting returns to you on a monthly basis.

How long do you hold these investments for?

Properties will have an investment lifespan of 3-5 years to allow for the asset to appreciate. While an early exit is possible through our liquidity options, this could adversely affect the total return on your investment. Investors can choose to sell investments (after an initial 6 month lock-in period) in Resale Market.

How do I exit my Investment?

Once the initial 6-month lock-in period is complete, you can exit your investment in four different ways. Asset Sale: Once an investment is 3 years old, Truehedge will hold an annual online poll among shareholders to decide if the asset is to be liquidated or held. If at least 75% of the shareholders vote to sell, we will begin the process of liquidation. Once the asset is sold, you will be credited your gains (post any taxes and fees) on your registered bank account. If shareholders vote to hold, the investment will continue as is, until the next annual poll where the process will be repeated. Private Sale: You are free to sell your fraction/holding to anyone you may know, such as friends or family. You only need to inform us so that we can update our records and help you with the share transfer. While Truehedge provides an NAV (Net Asset Value), you can choose to sell at any price you wish. Resale Market: Using Truehedge online dashboard, you can list your fraction/holding on Truehedge resale market at Truehedge recommended NAV. Once a new investor has acquired your fraction, you will be credited your gains (post any taxes and fees) on your registered bank account. Dedicated Resale Window: Truehedge will open an annual resale window during which investors can put up their fraction/holding for sale at a discount. During this period no new investments are offered on our platform and hence focus is solely on the resale platform. Once a new investor has acquired your fraction, you will be credited your gains (post any taxes and fees) on your registered bank account.

Who takes care of tenancy and property management?

There is a separate Property Management team that takes care of all property management functions under the supervision of truehedge management.

Who controls the decision on asset sale, new tenancy, capital expenditures, etc?

Most of the decisions about day to day maintenance, running and operations are controlled by the Asset Manager. However, for major decisions like sale of a property, decisions will be taken by a majority vote of investors.

When I invest in deals on Truehedge, what do I own?

You'll own Equity Shares and Debentures of the SPV which owns the property. These will be in demat form.

What are the tax implications on my investments?

As per the current income tax regulations, your returns will be taxed in exactly the same manner as if you had purchased the property on your own. You will be paying two kinds of taxes: Rents: Rents received from the property are distributed as interest on debentures which are taxable directly in the hands of the investors (post 10% withholding tax which can be claimed by the investor at the end of the year). Capital Gains : The profit on sale of commercial property is considered as capital gains. The same shall be long-term, if the property was held for more than 24 months and will be taxed at 20%, irrespective of the quantum of gains. However, if the property were to be sold before 24 months have passed, the same becomes taxable as short-term capital gains and is taxed as normal income. Please consult your financial advisor for more details.

How will I be updated on the progress of my investments?

You can view the performance of your investment through our online dashboard.

Will there be a management fee when the property is not tenanted?

No, there will be no management fee charged to investors for as long as the property is not tenanted.

What does the management fee paid to Truehedge cover?

The Management fee covers the costs for collection of rents, payouts to investors, TDS filing, GST filing, facilitating property tax payments, compliances of the SPV, sending monthly MIS of the SPV and insurance.

What is the contingency reserve used for?

Any unforeseen expenses that arise in the property are met using the contingency reserve. If the reserves are not used, they are refunded back to the investors at the time of sale.

How will I be taxed on distributions?

Distributions: Distributions are taxable directly in the hands of the user as per his/her tax bracket. The indicative withholding tax under the current income tax regime has been reproduced below:

Residential status as per Income Tax Act, 1961 Withholding Tax rate (TDS)
Resident *Non-resident Individual (“NRI”)
10% 30% (plus applicable surcharge and cess)*

*NRIs can explore benefits under Double Taxation Avoidance Agreement (“DTAA”) entered with the respective country, subject to availability of Tax residency Certificate (“TRC”).

How will I be taxed on capital appreciation?

Capital appreciation is subject to capital gain tax at applicable rate. The applicable tax rate would depend on the period for which the asset was held (short term vs long term). The benefit of indexation may be explored in case of long term capital gains (holding period > [●] years).

Does tenant pay GST?

Yes, the tenant pays GST over and above the rent.

Is the TDS deposited against my name?

Yes, the TDS on your distributions is paid and deposited against your PAN number and can be claimed back at the end of the year.

Can NRIs invest in opportunities made available by Truehedge?

Yes, NRI's certainly can. The products listed are more suitable for NRI's as they do not generally have the bandwidth to physically visit the properties before investing, complete the legal formalities and managing their investment.

Can I transfer the transaction amount from an NRE account?

Yes, you can transfer the transaction amount from your NRE or NRO account.

Can I transfer my transaction amount in foreign currency?

Transfer of foreign currency by NRIs are regulated by extant RBI and FEMA guidelines. Please reach out to us for more information on the same.

Can I get distributions and sale proceeds credited to my NRE account?

No, since NRE is a freely repatriable account, INR deposits cannot be made into an NRE account. Your distributions will be credited to your NRO account from where you can transfer it to your NRE account. Please speak to your banker for a more detailed understanding of your specific requirements.

I am an NRI. What taxes will I need to pay?

Under Indian income-tax law, an NRI is required to pay tax on any Indian sourced or received income. A basic exemption limit is provided under the Indian tax law. If the income in India does not exceed the basic exemption limit, the NRI will not have to pay tax in India. If the income in India exceeds basic exemption limit, the NRI will have to pay taxes in India as per the applicable slab rates. *NRIs can explore benefits under Double Taxation Avoidance Agreement (“DTAA”) entered with the respective country, subject to availability of Tax residency Certificate (“TRC”). I do not have any taxable income in India. Why do I still need to pay tax? Even if an NRI’s income in India does not exceed the basic exemption limit, taxes may be withheld as TDS (tax Deducted at Source). Such an NRI can claim refund of taxes withheld by filing a tax return in India.

What is a TRC? How can I get a TRC?

A TRC is a Tax Residency Certificate provided by the country where you are currently residing. India has a Double Tax Avoidance Agreement (DTAA) with almost all major countries that reduce TDS to lower thresholds of 10-15% (depending on the provisions of the DTAA). However, the benefit of the reduced tax rate is only available to users who are able to produce a TRC. Please speak to your tax advisor on how you can procure a TRC for your country of residence.