India has witnessed a increase in the wealthy population due to the booming Information Technology industry and services oriented to the same. Against this backdrop, India has witnessed many disruptions in the wealth management industry, where wealth managers are leveraging technology to offer low-cost investment advisory to mass segments.
Discount Online BrokingBSE & NSE brokers once upon a time largely dominated by two communities have taken investors for a ride with shady & non transparent business practices. There was a problem to be addressed and Startups are encashing on the same – These Tech digital brokers charge clients significantly lower fees than traditional ones and offer only online trading facilities, but no research supports or financial advice. Because of the low-cost structure, discount brokers are quite popular among traders and some popular platforms are Zerodha, 5Paisa, Upstox, Samco.
Thematic Investment – Investment platforms are facilitating thematic investing. Each theme consists of a diversified portfolio of stocks based on an idea. An investor can focus on his ideas instead of individual stocks. E.g., smallcase and Fyers offer this type of product.
RoboAdvisory Several startups have gone beyond Mutual Fund distribution to offering digitized, long-term financial planning. They are using algorithms and artificial intelligence to understand the goals and aspirations of users better and provide them with personalized advice rather than just offering a generic portfolio. As more and more millennials pick up stock market investing and other investment avenues, financial literacy is also improving, leading to a mature outlook towards aspects such as financial goals. The services of these platforms range from automated plans, goal-based asset allocation, and end-to-end advisory based on information taken from the client.
To get the best of both worlds, established financial advisors offer a hybrid model to the clients. The insights and experience of the traditional financial planners along with risk management are combined with the agility, accessibility, and advanced technology of the robo-advisors.