BankBazaar to launch mutual-fund offering next month
Chennai-based start-up BankBazaar will launch a mutual fund offering, using robo-advisory, it has been reported. The company has linked up with 10 mutual funds houses, and will employ several data points to create a customised portfolio. CEO Adhil Shetty said its was a "logical next step" for the company, which already offers banking and insurance-based financial products. BankBazaar is one of several start-ups working in the mutual funds sector. Digital payments start-up Trupay and discount brokerage startup Zerodha are also active.
BENGALURU: Investing in a mutual fund is considered a smart option, especially for first-time investors, and several fintech startups are looking to make the process simpler and attractive for individuals. BankBazaar, which has a Sebi-registered investment-adviser licence, is set to use robo-advisory technology, which entails minimal human intervention in financial advice, to help customers invest in the right mutual funds . The feature will be live internally on October 30 and can be used by the public from November 17, CEO Adhil Shetty told ET.Digital payments startup Trupay will launch a feature this month for real-time investment in mutual funds using its UPI integration. Earlier this year, discount brokerage startup Zerodha had launched a portal for mutual funds to let customers schedule their investment based on net asset value (NAV) using an NAV tracking order, and to let them hold mutual funds in their demat account along with their stock holdings to ensure their entire financial portfolio is in one place.“We already deliver financial products around banking and insurance to Indian consumers. This is the logical next step,” Shetty said, adding that he himself puts his money in mutual funds since it has the “right return risk ratio”. BankBazaar will use several data points for the robo-adviser to generate a customised portfolio. The Chennai-based startup has tied up with 10 mutual funds houses and will get paid a trail commission by them.Trupay is looking to make the process of investing in mutual funds seamless through real-time transactions by using UPI that will ensure that the buyer is paying through a registered bank account.“Because of compliance processes to ascertain the source of funds for any investment-related payments, it can sometimes take a couple of days to allot units of the mutual funds to the buyer, during which the NAV may also change.This has been a pain-point for a long time,” cofounder Vivek Lohcheb said. “Through our portal, customers will now be allotted units at spot NAV price since the payments are credited in real time.” Trupay said it is currently in the integration phase with five mutual funds.Zerodha offers a choice of the bestperforming mutual funds, which Nithin Kamath, CEO of Zerodha, said the company is allowed to do using its stockbroker licence, and also uses a simulated systematic investment plan SIP ) to let users customise their investments based on markets instead of fixed periodical investments.However, while these are additional offerings by the startups, there are others such as Funds India that are dedicated to online investments in mutual funds and equities, while mutual fund houses themselves have their own portals.