š§ [Featured] Wealth Management: The Key to Easy Investing?
Over 95% of Indians donāt invest in equity markets and are losing out on a chance to build wealth. Hereās why investing is a problem for them and how one platform can solve this.
What if we told you that you could make money in your sleep?
Caught your attention, right?
Wondering how you can do so?Ā
By investing. But a lot of Indians are not interested in earning money this way.
At least thatās what the numbers say.
Out of 138 crore Indians, only 1.2 crores invest in stock markets and 9.78 crores invest in mutual funds.Ā
Result? 80% of Indians are not ready for retirement.
So, why are Indians not investing?
šø Reasons Indians Are Not Investing
According to the executive director of SEBI, only 27% of Indians are financially literate.
This means before making any investment, most Indians need to conduct extensive research.
This research usually reveals a plethora of investment options ranging from fixed deposits to mutual funds to even alternative investments like crypto and fractional real estate.
And even if they narrow down their search to a particular investment option like mutual funds, the sub-options are still endless.
For instance, there are over 2,500 mutual fund schemes in India.
So, investors suffer from the same decision fatigue that we do at an all-you-can-eat buffet.
And what usually happens when decision fatigue sets in?
People usually decide not to invest or choose to invest in traditional options like fixed deposits or gold.
Whatās worse is even those who choose to invest often do not see the desired results.
Thatās because 95% of active fund managers fail to beat the markets.
So, retail investors canāt seem to win, something that could be detrimental to their future.
Right now one-third of Indians do not plan to retire at all, because it just doesnāt make economic sense for them.
But these problems seemed to be limited to the middle class.Ā
The rich can just take advantage of portfolio management services.
Why just the rich? Because to avail these services, you need a minimum investment amount of Rs. 50 lakhs.
To solve these very problems, Mintd was born.
ā” How Mintd is Changing Things
Mintd is a digital platform where experienced advisors carefully build a tailor-made portfolio for you based on your risk appetite.
All you have to do is take a small quiz to ascertain your risk appetite.
Mintd then uses the Nobel-Prize winning Modern Portfolio Theory to curate your portfolio (currently, they only create a portfolio focused on mutual funds, bonds and US equities).
Whatās the Modern Portfolio Theory, you ask?
It is an investment theory that assumes investors are risk-averse and tries to build a portfolio that can maximise returns based on your given level of risk.
This could be great for Indian investors who are generally risk averse.
According to a survey by ET Money, only 35% of Indian investors are willing to take calculated risks, while 34% are risk-averse, more given to protecting their money.
So, Mintd could be a good way for retail investors to begin building wealth. They donāt have to take too much stress about the risks, or take super difficult decisions themselves.
And building wealth has become very important for India. Because just the top 1% own 40% of national wealth, while the bottom 90% own just 25.7% of the national wealth.
Wealth management services could really help bridge this gap.
And the time is right for platforms like Mintd to create meaningful change.
You see, the mutual fund industry is growing at a CAGR of 18% and is set to reach an AUM (assets under management) of Rs. 50 lakh crore by 2023.
And for every rupee that is invested in mutual funds by next year, 21 paise will be invested through a digital platform.
So, Mintdās future seems bright!
Let us know what you think about the platform in the comments.
Share this with your friends via WhatsApp or Twitter and help them declutter news from noise! See you tomorrow :)
You can also listen to our stories. Catch it on Spotify, Apple Podcast, Amazon Music, Google Podcasts, Gaana or Jio Saavn.
If you are coming here for the very first time: Donāt forget to join us on WhatsApp to get daily updates! š
Did not like this edition. The start was good - focusing on a problem. But the end was more like a disguised sponsored advertisement.