Most of them are copycats of the US models.
When FundsIndia.com announced operations in Robo advisory space people laughed at them. The firm had received huge funding from the Foundation Capital and others. But within a very short span of time there are around 40 companies in India who are offering this service. Being an internet based service; it is catching the eyes of a lot of young people. The objective is to reach out to the young and first-time investors. From registration to execution, little human intervention is needed.
The Robo advisors provide online advice for investments to their clients based upon automated proprietary algorithms where an investor has to register and provide the answers to the questions which decide their risk profile. Robo-financial advisors have strong algorithms at the backend where they create a desired portfolio based on certain parameters like risk profile, performance consistency vis-à-vis benchmark, investible surplus etc.
Based on all this, algorithms generate a Robo investment advice incorporating asset allocation and mostly offer a portfolio made up of debt and equity mutual funds. The securities as advised can be the direct equities or the passive investment tools like index funds, exchange traded funds (ETFs), or mutual funds. All the interactions are digital and around financial goals such as tax planning, saving, regular investment and retirement. Some Robo-advisors primarily offer only mutual funds in terms of transparency, returns and accessibility; these are found to be most appropriate to address goal-based asset allocation needs for retail investors. Some offer insurance and deposits also.
Broadly, the Robo-advisory platform can be categorized into four—automated investments, direct plans, goal-based advisory and full service advisory. In auto-pilot mode, investors select among the offered packages as per their need, and the time they think they will stay invested. The goal-based advisory is structured on asset allocation, which means the fund selection is a result of the information you provide. Some firms operate on a distribution model, as similar to traditional advisors. They advise on funds and assets to invest in and the transaction is completed through the platform, all for free. The platforms, in return, earn a commission from the mutual fund corporation house. Some operate on an advisory model and charge an advisory fee.
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COVID-19 - Is It A Black-Swan Event?
It often happens that, the thought of fear itself is greater than what it is we fear. The stock market is currently experiencing the same. It is feared that deadly Coronavirus could tip the world economy into recession. The correct assessment of the impact would be difficult now as situation is quite fluid. The emergence of new centers of infection outside of China is fueling concern that the outbreak could become a global pandemic, rattling financial markets. Nevertheless, it presents an opportunity to India. The current software industry in India is also a product of similar opportunity presented in year 1998 due to Y2K problem.
Hooray For The Orange And Blue
Hooray For The Orange And Blue
Has The Popularity Of Value Investing Ruined Its Attractiveness?
Has The Popularity Of Value Investing Ruined Its Attractiveness?
What It Says About Future Equity Returns
Whenever the secondary market booms, come the promoters of companies with their IPos, enthusiastically supported by pink papers. Investors are lured in such a way with the euphoric feelings and intense excitement that, even after having burnt their fingers in the past, still they come again believing the party will continue ad infinitum.
A Home Buyers Checklist
A Home Buyers Checklist
Curtain- Raiser For The New FY
Curtain- Raiser For The New FY
Will MSP Theory Work For Farmers?
Finance Minister Arun Jaitley has announced that MSP (Minimum Support Price) @ 50% above the cost of production will be given to farmers for Kharif which will start coming in the market in Sept-Oct. He also said that the MSP is being implemented for 23 crops of Rabbi.
The Robo Investment Advice
Most of them are copycats of the US models.
A Separate Policy For Hybrid Instruments Soon
Union Finance Minister Arun Jaitley in his Budget for 2018-19 said the government’s policy think-tank NITI Aayog would start a national programme to direct efforts in artificial intelligence, including research and development of its applications. He also highlighted the Start-Up India programme and a venture capital industry-focused taxation regime. He said the government would take additional measures to strengthen the environment for their growth and successful operation of alternative investment funds (AIF) in India. He said that the government would evolve a separate policy for hybrid instruments – convertible bonds, preferred stocks, equity swaps and structured notes – to attract foreign investment in startups and venture capital funds.
​Master Drawings
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The Food Fight in Fake Meat
Beyond Meat was an early leader. But rival Impossible Foods and others want to eat its lunch