Retail investors have deep-dived 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 the lack of financial knowledge, investors stumble to make the right decision. The idea of tailored, consolidated baskets curated by financial experts enables them to invest in a more focused manner.”
Various platforms like Groww, Fintso, Scripbox, Paytm Money etc. are helping to provide different investment opportunities to retail investors in many ways.
Most of these B2B2C fintech platforms partner with smallcase to provide investment opportunities to the retail investors managed by financial product distributors on its wealth-tech platform. Through such partnerships, distributors offer curated baskets of stocks and ETFs that are based on a theme, strategy, or goal to their clients, called smallcases.
Industry experts explain such partnership provides investors access to professionally managed smallcases based on strategies that reflect an idea or a theme.
Pathak explains, “Investors get an in-depth understanding of the investment methodologies, and the savvier investors can compare relevant ratios and graphs to make an informed decision on choosing smallcases.”
He further adds, “Investors are usually also allowed to transact in smallcases using their existing Demat accounts across India’s top brokers and track their holdings natively. This integration will also facilitate new customers to open Demat accounts digitally with their broker of choice.”
How are they helping investors in real-time?
The association, industry experts say is a part of the evolution of the wealth-tech space in the country – given the explosion of new broking accounts being opened – providing investors with a new and viable option for investing.
With distributors aiding the investment process, Pathak says, “investors using such digital wealth management platforms, will be able to access smallcases and make curated stocks a part of their portfolios, making them an intrinsic part of their long-term wealth creation.”
Such digital wealth management platforms “bridge the acute gap between Demat account holders and informed stock investments through professionally managed smallcases and the distributors on board,” adds Pathak.