General questions
What is FractoProp?
FractoProp is a RD Brothers Group Company offering fractional ownership and investment opportunities through a proposed Alternative Investment Fund.
Who will handle my investments - RD Brothers or FractoProp?
FractoProp is a RD Brothers Group company and has the founders of RD Brothers spearheading FractoProp.
Has RD Brothers also invested in AIF of FractoProp?
As per SEBI (Indian regulator - Securities Exchange Board of India) an AIF can be set up with only the minimum contribution by promoters / sponsors / General Partners. In the case of the proposed AIF, FractoProp will be the sponsor / General Partner.
Are you going to invest across various property categories?
No. FractoProp will only be investing in commercial, leisure and warehousing real estate opportunities.
At what stage would FractoProp invest in a property?
FractoProp would only invest in properties that have valid Development Agreements.
Will I be getting to decide which opportunity I want to invest in or will it be decided by FractoProp?
FractoProp is managed by a team of professionals and the investment opportunities will be shortlisted by FractoProp and RD Brothers Team after deep screening and due Diligence, hence the investment decision will be taken by FractoProp.
How secure is my investment?
All properties are only shortlisted after proper due diligence conducted by industry and domain experts and third-party audits.
How do I monitor my investments?
Investors will receive timely updates, statements of accounts and regular interactions With the fund management team and portfolio companies.
Who can invest in FractoProp?
Indian residents, NRIs, and eligible entities (As defined by SEBI) can invest.
What returns can I expect?
Our projects based on history typically offer 8–10% annual yields and capital appreciation over the investment term.
What are the exit options?
You can exit through resale, secondary transactions, or at the end of the investment term - all guided by our investment team.
Are there any hidden charges?
No. All charges and fees are transparently shared before investment and included in the term sheet.
What is fractional ownership?
Fractional ownership allows multiple investors to co-own a property, sharing profits and returns based on their investment proportion.
By investing in FractoProp fractional ownership will the property be registered in my name?
Yes in fractional ownership.
What is the minimum investment amount in Fractional ownership?
In the fractional ownership investors can make a minimum of INR 25 Lakhs of investment.
Can I make a monthly contribution?
Yes in the case of fractional ownership.
What are Alternative Investment Funds (AIF)?
Alternative Investment Funds (AIFs) are regulated and professionally managed investment vehicles that pool funds to invest in curated assets.
What assets would FractoProp be investing in?
FractoProp would only be investing in real estate opportunities in Mumbai.
What are the benefits of investing in AIF vis-a-vis directly in real estate?
The benefits are:
- Investors can benefit by investing in different opportunities with smaller investments
- Investments are spread across various opportunities and the investor is exposed to less risk
- Investments are managed by a professional team with hands-on experience
- All investments by FractoProp are only done after detailed and multiple levels of screening and due diligence.
Is FractoProp SEBI-registered?
FractoProp’s proposed AIF offerings will be SEBI-compliant and operate under regulatory oversight, ensuring transparency and investor protection.
What is the minimum investment?
In the AIF as per SEBI all investors have to agree to make a minimum investment of INR 1 Cr.
Are you going to invest in real estate in the form of debt investment, equity or hybrid?
FractoProp is open to all of these forms of investments, subject to our investment strategy and as approved by the regulator.
Do I get regular income?
It will depend on the kind of investment structure. If it is pure debt investment and there is a coupon attached, then investors would be paid the coupon rate. In other cases where there is only equity investment then investors would gain by capital appreciation.
Is my investment locked in?
In AIF there is a lock-in period of 3 years.
By investing in FractoProp AIF will I be getting units in the fund?
Yes.
Other questions
How much return on investment can I expect to receive?
By investing in the proposed AIF one can likely expect 20% - 25% yearly returns.
What is the concept of hurdle rate?
SEBI has made it mandatory to specify a minimum hurdle rate. Hurdle rate is the bare minimum threshold percentage below which the fund house does not earn a share in the profit of the scheme. In case of proposed FractoProp AIF the hurdle rate is 18% p.a.
What is Carry?
Carry is the sharing of returns between the investor and the fund over and above the hurdle rate.
What is the income tax applicable on the earnings received by investing in the proposed AIF?
the proposed fund as per indian regulator is a pass through vehicle. In other words the fund will not be taxed however the investors will be taxed on earnings from the fund as per the rates applicable to them.
How do I get started?
Simply sign up, complete KYC, explore available projects, and start investing - with expert guidance at every step, post the approval from SEBI