How do new age financial products help retail investors with their investments?


Retail investors have taken a deep dive into the investment game. However, the lack of financial education makes it difficult for them to select the right assets.

Rajan Pathak, Co-Founder and MD, Fintso, says, “Due to lack of financial knowledge, investors are hesitant to make the right decision. The idea of ​​tailor-made consolidated baskets, organized by financial experts, allows them to invest in a more targeted way. »

Various platforms like Groww, Fintso, Scripbox, Paytm Money, etc. contribute to providing different investment opportunities to retail investors in several ways.

Most of these B2B2C fintech platforms partner with smallcase to provide investment opportunities for retail investors managed by financial product distributors on its wealth management technology platform. Through such partnerships, distributors offer their clients baskets of shares and ETFs organized on the basis of a theme, strategy or objective, called smallcases.

Industry experts explain that such a partnership allows investors to access smaller, professionally managed deals based on strategies that reflect an idea or theme.

Pathak explains, “Investors gain a deep understanding of investment methodologies, and more knowledgeable investors can compare relevant ratios and charts to make an informed decision on which small cases to choose.”

He further adds, “Investors are generally also allowed to transact in small deals using their existing Demat accounts with top Indian brokers and track their holdings natively. This integration will also allow new customers to open Demat accounts digitally with the broker of their choice. »

How do they help investors in real time?

The association, according to industry experts, is part of the evolving wealth technology space in the country – given the explosion of new brokerage accounts being opened – offering investors a viable new option for investing.

With distributors helping the investment process, says Pathak, “Investors using such digital wealth management platforms will be able to access smaller deals and integrate organized stocks into their portfolios, making it an intrinsic part of their business creation.” long-term wealth”.

These digital wealth management platforms “bridge the acute gap between Demat account holders and informed equity investments via professionally managed petty cash and onboard distributors,” adds Pathak.


Comments are closed.