February 10, 2016

Invezta.com: Invest in DIRECT Mutual Fund schemes online at one place

How to invest DIRECT Mutual Fund schemes online? This is the one of the major concern of DIRECT Mutual Fund Investors is that of not having a single platform to deal with or invest it ONLINE. Now the wait is over.

There are many online platforms which offer regular funds, but after MF Utility, there was no such platform which we may claim that we can invest in DIRECT Mutual Fund schemes online.

Investza.com now came up with an online platform where you can invest in DIRECT Mutual Funds at ease. This is the guest post by Mr.Sharad Singh Founder, CEO of Investza.com and also the man behind Fundoo.com. He already wrote a guest post in BasuNivesh long back “How to choose best performing Mutual Funds in India?“.

Investors have been looking at platforms that can help them invest in direct schemes of all AMCs at one place. Direct schemes offer higher return as they do not have any commissions attached to them.

Invezta.com is one of the first platforms that allow you do invest in mutual fund schemes of AMCs at one place. Now you can get rid of the hassles of managing multiple accounts with AMCs for your investments in direct mutual fund schemes.

Invezta provides direct plans along with sophisticated advice that is backed with data analytics. Investors can transact in mutual fund schemes, view their reports and analysis by goals and also get timely alerts to rebalance their portfolios.

The following are the key features of Invezta.com:

  1. Direct mutual funds with savings on commissions
  2. Online process where you can start investing in less than 5 minutes
  3. Free investments upto 50k and 3 year free for each friend you refer
  4. Goal-based investing and tracking allowing you to manage your investment goals easily
  5. Sophisticated advice with selected mutual funds and portfolios as per investment horizon and risk profile
  6. Automated alerts for portfolio rebalancing and keeping your portfolio always healthy

You can start investing for Free and keep investing until you cross your free limit.

There are 2 packages which you can subscribe to once you exceed your free investment limit:

  1. Basic Package: Rs 79 p.m. payable annually (This includes only the transaction and reporting part of the platform. Suggested for DIY investors or investors who already have an advisor outside the platform)
  2. Premium Package: Rs. 109 p.m. payable annually (This includes the Robo-advisory where you get selected mutual funds and portfolios for investing as per your goals.)

Invezta is the only platform globally that has brought accountability to the advice it gives. It offers a pay-if-it-works feature in the Premium package. It means that for periods where the recommended schemes of Invezta do not outperform the category average, that period’s advisory fee shall not be accounted for.

Invezta is trying to democratize the investment space by providing quality advice to all investors at a tiny fee.

Besides, the pay-if-it-works model comforts the investor that Invezta is taking responsibility of the advice and is thinking for the benefit of investors only.

In the following section, there are a few screenshots of the product showing the registration screen, dashboard and depicting the investing process.Registration screen: You can register with Invezta.com by providing your contact, bank and regulatory details. Complete your registration process in less than 2 mins. It’s a complete paperless process for a KYC compliant investor (upload your canceled personalized cheque).

1) Registration screen: You can register with Invezta.com by providing your contact, bank and regulatory details. Complete your registration process in less than 2 mins. It’s a complete paperless process for a KYC compliant investor (upload your canceled personalized cheque).

Invezta.com Login Page

2) Login Screen: Login to awesome investing using your registered email id and password.

Invezta Registration Screen

3) Risk Profiling: To recommend portfolios, tailored for investor from thousands of combinations, we capture risk profile of the investors.

Invezta Risk Profiling

4) Invest Now: An investor can invest in mutual funds in 2 ways

  • Advisory: Select a goal and years of investment, system will recommend schemes as per your goal, years of investment and risk profile. Investor can also invest more in their existing goals.
  • Do it yourself (DIY): Experts can select their own schemes and invest.

Invezta Invest Now

5) Robo-Advisory: With world class expertise in scheme recommendation and asset allocation the system creates a portfolio tailored to your profile and the tenure of investments. It will recommend schemes and allocate weights in each scheme.

An investor can also change the fund and opt for other recommended schemes using “change fund” option.

Invezta Robo Advisery

6) Do it yourself: Investor can also select their own schemes and invest directly as per their choice (it is suggested that only those who understand investments should take this approach or those who have a financial advisor outside the platform can use the platform for transactions only.).

Inveza Do It Yourself

7) Confirm your transaction: On confirm transactions action, investor will be redirected to their respective bank payment gateway. Post bank confirmation, investor will be redirected to Invezta’s dashboard section and transaction will be processed by AMC.

Invetza Transaction

8) Transaction report: Status of all the transactions executed by the investor would be available in this section. Investor can also pause or stop their active SIP on the fly.

Invezta Transaction Report

9) Dashboard: Investor can view their overall performance of their portfolio with gain and rate of return (IRR). Investor can also view their investment goals in timeline with respective to their invested amount and estimated growth of investments in their individual goals.

The details of invested amount, MTM, P&L and Xirr are presented. The holdings information is also presented showing the details of mutual fund schemes held in the portfolio.

Invezta_9

10) Goal Dashboard: Investor can drill down to individual goals to analyse the respective goal in detail.

Invezta Dashboard

11) Portfolio Holdings: Investors can view the performance of the schemes held by them in their goal or at portfolio level.

Invezta Portfolio

12) Redemption of Schemes: Investor can easily redeem particular schemes from their portfolio on the basis of units or amount.

Invezta Redemption13) Alerts: User specific alerts will be available in the alert section.

14) My Account: Investor profile information and details will be available in MyAccount section.Need help: For customer support, you can email to

15) Need help: For customer support, you can email to [email protected] or raise ticket using the “Need Help” button on the portal.

Note-This post is purely for information purpose. We are in no way associated with Invezta.com or with their team. Also, there is no monetary benefit for us by publishing this post.

79 Comments

  1. How many AMC’s are live now in Invezta platform?
    I wanted to move my investments in FundsIndia to Invezta

    Reply
    • Hi Naman,

      We have 30 AMCs live , plus a few in process.

      Practically it should cover the gamut of your investments.

      Please feel free to write to [email protected] for help on the transfer.

      Best Regards,
      Sharad

      Reply
      • Can you Please list the AMC’s

        Reply
        • Hi Naman,

          Below is the list of AMCs live on our platform :

          AMC NAME
          AXIS MUTUAL FUND
          BARODA PIONEER MUTUAL FUND
          Birla Sunlife Asset Management Company Ltd.
          BOI AXA MUTUAL FUND
          CANARA ROBECO MUTUAL FUND
          DSP BlackRock Investment Managers Pvt Ltd.
          EDELWEISS MUTUAL FUND
          Franklin Templeton Asset Management Pvt Ltd.
          HDFC Asset Management Company Ltd.
          HSBC Global Asset Management Pvt Ltd.
          ICICI Prudential Asset Management Company Ltd.
          IDBI MUTUAL FUND
          IDFC Asset Management Company Ltd.
          Kotak Mahindra Asset Management Company Ltd.
          L&T Investment Management Ltd.
          MAHINDRA MUTUAL FUND
          MIRAE ASSET MUTUAL FUND
          MOTILAL OSWAL MUTUAL FUND
          PEERLESS MUTUAL FUND
          PPFAS Asset Management Pvt Ltd.
          PRAMERICA MUTUAL FUND
          PRINCIPAL MUTUAL FUND
          QUANTUM MUTUAL FUND
          RELIANCE MUTUAL FUND
          RELIGARE INVESCO MUTUAL FUND
          SBI Funds Management Pvt Ltd.
          Tata Asset Management Ltd.
          TAURUS MUTUAL FUND
          UTI MUTUAL FUND

          Reply
  2. Hi,
    how safe is investing through Inventza when considering for a longer duration?still all my holding will be in NSdL?
    i can login into individual AMC and i can see my fund?

    Reply
    • Sharan-Invezta is like an adviser. If adviser goes OFF, then you still continue your investment in the fund. Yes, your holding will remain as usual whether you invest through Invezta or through AMC.

      Reply
    • Hi Sharan,

      All your holdings remain with AMCs and at any point you can manage the same with them directly.

      The investments are safe and the processes followed are as per the regulations.

      Best Regards,
      Sharad

      Reply
  3. Hi Sharad,

    Is it possible to transfer my existing direct holding into Invezta?

    Unfortunately, I don’t see any contact number specified on the entire website and I am unable to contact your team.

    Please advise.

    Thanks

    Reply
    • Hi,

      Please write to [email protected] with the folio details and they shall help with the process for transfer.

      PS: have been traveling, so the delay in reply.

      Regards,
      Sharad

      Reply
  4. I have started all my SIPs direct, by going to AMCs office. Are they charging me some fee? Or is it better to go through Invezta, and how?

    Reply
    • Pratap-Check whether the funds are REGULAR or DIRECT.If DIRECT, then no charges.

      Reply
  5. Hello Sharad,

    Would it be possible for you to let me know when Sundaram AMC & HDFC will be live in Invezta? And would switching of existing regular folios to direct be possible in the coming months?

    Thanks & Regards,
    Allen

    Reply
  6. Hi Basu sir,

    I am planning to buy a debt fund for the time period of 3 yrs. I considered PPF option but because of locking didn’t opt for it. Which are the best debt funds currently in which I can invest?

    Reply
      • Can you please name a few good short term debt funds?
        Also, I want to invest surplus income of 1.5 lacs, how should I invest that? Is FD a good option for the whole amount? or any better approach you suggest.

        Reply
        • Tina-You can opt for funds like HDFC Banking and PSU Debt Fund. Without knowing when you will withdraw that amount, it is hard for me to guide.

          Reply
          • I am looking for the time frame of 5 years for 1.5 lacs investment. Considering this, can you suggest good investment options.

            Reply
  7. I have invested in MF for last 18 months in direct plan.pls check my portfolio and share your view whether it is good or not.

    birla sun life frontline equity fund – 3000

    icici pru value discovery fund – 3000

    dsp black rock micro cap fund – 3000

    icici pru us bluechip equity fund – 3000

    debt portfolio -lic policies premium – 60000 per year

    Reply
    • Akash-Without knowing the time horizon, it is hard for me to judge.

      Reply
      • sir, time horizen is 10 years

        Reply
        • Akash-For this time horizon, I suggest debt:equity in ratio of 60:40.

          Reply
  8. how many bank accounts can i add on invezta

    Reply
    • Hi Arushi,

      Currently the platform allows only 1 bank account.

      We shall add flexibility to this later.

      Best Regards,
      Sharad

      Reply
  9. Hi Sharad,

    First of all, i would like to compliment the support team of Investza for helping me out with all my queries. Would there a helpline or some sort of chat window to chat with the support team in the near future?

    Additionally, i would like to know when HDFC be live on Investza?

    Thanks & Regards,
    Allen

    Reply
    • Sorry my apologies for the typo error. It should be Invezta. Kindly let me know how to opt for the packages.

      Reply
      • Hi Allen,

        Thanks for your kind words.

        Yes we are working to create chat/telephonic support capabilities in future. Trust the team has been able to serve you well with the Ticketing system.

        HDFC has now been pending for sometime due to some compliance and agreements. We shall update our users as soon as we can add it.

        Best Regards,
        Sharad

        Reply
  10. I have the following two queries for investment through invezta as follows:

    1> Is Sundaram MF added to the list of fund houses where we can invest her? Also it will be helpful to get a list of the fund houses being planned to be incorporated along with the timelines.
    2> Can we have the investment done in Either or Survivor mode [ Joint holders]

    Thanks in advance for your response

    Reply
    • Hi Deep,

      Thanks for your query.

      We still have 17 AMCS live as of now (2 more coming in shortly) viz. ICICI, Reliance, Birla, Tata, SBI, UTI, Axis, MoSt Canara, Religare, PPFAS, Quantum, Franklin, Kotak, L&T, Mirae and DSP BlackRock.

      We intend to add all mutual funds, however, since we are an independent platform, we have to associate with each AMC separately and that’s taking more time than expected. We are already in talks with Sundram and are expecting them to respond fast. Similar the case with other AMCs. Can’t put a deadline as their legal and compliance turn around times are not under our control.

      Yes, Invezta is now open for Joint holding accounts.

      Hope the above answers your query.

      Best Regards,
      Sharad

      Reply
  11. What are the AMCs currently under Invezta. Its been a few months since these posts, so hoping all the big ones are in now?

    Reply
    • Hi,

      We have 17 AMCs live now, getting to 20 in a few weeks and further on.

      All big AMCs are there but for HDFC which should be there soon.

      The ones live are ICICI, Birla, UTI, SBI MF, Franklin, Invesco, Kotak, L&T, Axis, Mirae, Most, Canara, Quantum, Tata, PPFAS and Reliance.

      Best Regards,
      Sharad

      Reply
  12. Hello Sir, You are doing a fantastic job of creating awareness.
    For Investment you recommend equity mutual funds for most of the time.

    1) I invested in ICICI wealth builder II, where i need to Pay One Lakh per year. (Investment + insurance coverage of 10L).
    2)But they took 6000 for agent commission and 4000 for insurance.
    3)So in my amount they invested only Ninety Thousand out of 1Lakh. Though it grown and current worth is around Ninenty eight thousand, on the whole it is less than the invested amount and no growth.
    My question is,
    1)how this investment is different from equity mutual fund?
    2)Does the equity mutual fund also charges me more , so only less amount is actually invested?
    3)Can i split the amount and invest. eg:30% in mutual fund and remaining in FD and Sukanya sammridhi scheme

    Reply
    • Nano-1) This is a ULIP product of what you invested. The worst kind of investment.
      2) The maximum charge capped for MF is 2.5%.
      3) You must split. But how much depends on your tenure of investment.

      Reply
  13. hello,

    I would like to know when TATA & SBI mutual funds are going to be a part of invezta.

    Reply
    • Hi,

      SBI MF should get added in a couple of days.

      Tata MF may be live towards the week end.

      Regards,
      Sharad

      Reply
  14. Is investing through broker direct or regular MF.
    If through broker is regular ,than even in that instance while we do SIP its we who are doing it all by own without the guidance of the broking firm. Even monitoring is done by me…than its similar to direct and hence I guess to better go by Investa at least commission will not be cut

    kindly advice

    Reply
  15. Dear Mr. Basu,
    Your impressive blog in Invezta is appreciated.
    When I set a goal and time frame, it gives me a set of MFs with 40% Equity & 60% Debt combo.
    If I check the recommended Debt MF performance for last 1/2/3 yrs, I find it varies between 2%- 6% where PPF stands taller.

    Similarlly there are some better Equity MF which are not listed within Invezta’s database.

    Even your recommended MFs also do not figure in Invezta.

    My purpose to move to invezta is to invest in best performing Direct MFs.

    May I request your advice on three Equity and two debt MFs to distribute apprx 30k for a period of 5 years

    Reply
    • Hi Loknath,

      May I answer a part of the question.

      Though past returns is not a great barometer, 2% annualized return over 2-3 years seems on the lesser side. Which funds are you looking at…

      Invezta currently has 13 AMCs live. We should be adding around 4-5 more in the next 2 weeks including Franklin, SBI etc. So you should have more selection options.
      All AMCs would be eventually live and you should have access to all schemes then.

      If you are looking for a period of 5 years, PPF won’t be an option as the money is blocked for 15 years.

      Regards,
      Sharad

      Reply
  16. I do SIP in MF through Sharekhan portal i.e. have demat account.
    Kindly advise which is economical way to invest ie thru Sharekhan or Invezta.com
    Is there portability option to switch between the two?
    Everytime I am doing SIP or coming out from a MF,do Sharekhan have certain commission on it.
    Kindly share if any information

    Thanks

    Reply
    • Sachin-Cheapest is Invezta. You can convert to direct using Invezta platform.

      Reply
      • Will I have to Sell off my existing portfolio in Sharekhan and then reinvest through Invezta.

        Thanks

        Reply
        • Sachin-It is switching from regular to DIRECT. This is nothing but selling there and buying in direct.

          Reply
          • What would be difference between Direct and Regular
            Will I have to bear the tax once I sell my existing portfolio for capital gain

            Reply
  17. Hello Sir,

    First of all thanks for the so much information, by reading your post I tried with invezta but I figure out there is some bug (correct me if I am wrong) . Everytime I am setting the goal the system is giving me same sort of funds to invest. Also even try to change the risk profile still the result same. It looks like half baked product.

    Thanks

    Reply
    • Hi Sumit,

      This is Sharad from Invezta.
      Please allow me to answer this.

      You might have to change the time period of the goal to have different asset allocations and portfolios.

      The suggested portfolio depends upon your risk profile and the goal target date (investment horizon).

      You might be seeing the same portfolios as you might not be changing the default goal target date which is 3 years.

      Please try playing with the investment horizon and you should see the different portfolios.

      Hope this helps. Please ask us for any issues that you might face.

      You may raise a support ticket on the website for any issue and your concern shall be resolved promptly.

      Regards,
      Sharad

      Reply
  18. Sir

    Want to understand how expense ratio works ? Is it some percentage that is taken out annually ? Will it not impact the overall profit that we get? Now, since it is in terms of percentage, dont you think it works out negatively than compared to a fixed income like RD, FD, PPF … ?

    Reply
    • Sandeep-Yes, it is some % taken out of AUM. Yes, definitely it impacts your return. For example the case of regular to direct funds. Do you feel the other fixed income products not have expense ratio? They not disclose it. But it does not mean no expenses.

      Reply
  19. Dear Sharad Sir,

    You should have website open for third type of investor who just want to track their investment (direct or regular) and check out various analysis/ report of the website . over period of time they may switch the transaction also. what is your opinion about it?

    Reply
    • Hi Dharmesh,

      Thanks do much for this suggestion. I really loved it.

      We’ll surely consider and put this on our product roadmap.

      Thanks again… 🙂

      Regards,
      Sharad

      Reply
  20. 1) MF regular plan commission.
    2)direct plan fee only planners’ fees.
    which is the most cost effective??.

    Reply
    • Prasanna-For me DIRECT with Do It Yourself. Because it is your money at the end of day YOU know better than others of how and which is important to you.

      Reply
  21. @Nivesh: I like your honest disclosures. But in addition, for guest posts like these written by the direct businesses, please ask them to write what is NOT available with their service which may be needed for such type of service. Does Invezta allow folios already existing to be added? Can the existing REGULAR funds be moved to invezta? Are the charges mentioned includes Service Tax?

    Reply
    • Dear Sreekanth,

      I appreciate the point you have made. I missed writing the current limitations and clarifications that you have sought.

      Here are the same:
      1. Regular plans cannot be brought on Invezta as we are RIAs and the platform is for direct plans only.
      2. Bringing existing folios in direct plans should be possible shortly. We are testing it with a few customers and working to create a seamless process.
      3. The Fees excludes service tax.

      I hope this helps. A few other limitations:

      1. STP/SWP shall be activated later
      2. Open for Individual & Minor investors currently. Supporting NRIs and Joint holders with support team as of now. Their online registration shall be feasible later.
      3. Have 13 AMCs live. All AMCsshould be live within 2 months. Since this is a first such platform, agreement formalities are taking a bit more time than usual.

      We wanted to launch with the most important features first and that’s why there are quite a few things to be done, which are on our roadmap.

      Regards,
      Sharad

      Reply
  22. Dear Basavaraj,
    I purely see this blog as marketing which I not expecting from you as I am your follower from long back. Please don’t encourage such posting even you are forced to do. This is my suggestion only. Thanks

    Reply
    • Shanky-Thanks for your views. But my motive behind this post is to push for DIRECT MUTUAL FUNDS. Not to market any single company or whatever it is. Also, I clearly mentioned that I am not at all associated with Invezta.

      Reply
  23. Which AMCs are involved ??

    Reply
    • Dharmesh-As of now 13 AMCs are tied up and two more to be added in next few months.

      Reply
    • Hi Dharmesh,

      Currently we have 13 AMCs live. We started with 10 AMCs and have added 3 in the last 2 weeks since launch.

      All major ones should be live in a couple of months.

      The ones currently live are Reliance, ICICI, Birla, UTI, Motilal, Mirae, Quantum, Axis, Kotak, L&T, Religare and PPFAS.

      Regards,
      Sharad

      Reply
  24. Dear sir, in your view which is the best platform to invest in mutual funds invezta.com orMF utilities.
    Please give your suggestions .I am a new investor.Thanks.

    Reply
    • Mohan-Nowdays there so many options flooded. But MF Utility is purely FREE.

      Reply
  25. Hi Basu,
    Very informative. As of now MFUtilities provide a common platform where we can see all our mutual funds at one place. Off course features of MFutilities and investa are no way comparable. But i suppose in future MF utilities would be upgraded to provide better user interface. But the whole idea of direct option is to avoid mediators, but by monthly charges to portal of investa it fails
    And ‘pay if it works’ is their main slogan and its very brilliant tagline to fool people 🙂
    If a person invest say, 20000 rs in the fund investa recommend, and if it under perform in any quarter, say by 5% or 10%, they say you dont need to pay their fees. It means you will save 220 rs in quarter fee but how about your lose!! You still lose 1000 or 2000 rs. And if you are in profit then you have to pay their fee.

    So eventually you selected Direct plan to avoid agent fees and you pay fees to investa if you are in profit. 😀
    Its always better to do your research(or ask Basu :D) to select the MF and buy it in MF utilities where you can monitor every thing for absolute free 🙂

    Note-This post is purely my view . I am in no way against Invezta.com or their team. 😀

    Reply
    • Vinod-I appreciate your view. But there are few investors who are FOND of DIRECT..but don’t know how to. For them it may help than hiring a costly rare species called Fee-ONLY financial planners in India. Hope you got my point 🙂

      Reply
    • Hi Vinod,

      Appreciate your views. Feedback, either-ways is helpful… 🙂

      A couple of points:

      1. Yes MFU is free and Invezta is paid. We think that there is a huge amount of value we can add besides the normal reporting available elsewhere. Goal based investing, unbiased advice, tracking, alerts with periodic review can benefit investors immensely.

      True, that MFU shall improve over time. Equally true is that even we would … 🙂

      Nevertheless, for a segment of investors our value-add might not be appealing enough to pay and they shall choose MFU. That’s perfectly fine.

      Moreover, we are different than commission mediators. At a flat fee of close to 1000 bucks per annum, with no matter how much the AUM is, this can be a good proposition for a big enough customer segment.

      2. Pay if it works

      This is a real value and not a marketing gimmick.

      Please allow me to explain.

      An average investor gets average returns when he/she invests in MF (some invest in better schemes and some in worse but the average return is average of all investments of all investors in MF schemes).

      What we are saying is: you pay if beat this average. If our fund selections perform better than category average. If we make our client better than an average investor.

      Most funds beat index but not all of them are better than average. To find them is a value-add and that’s what we are trying to do.

      I hope that’s a fair test for us and a good offering for a normal investor.

      Yes, for an expert like you, may be you don’t need it as you can pick up better schemes yourself. But for a majority of investors, we are trying to provide quality advice with accountability.

      The cost of advisory is just Rs 30 p.m. over the normal DIY fee. It’s hardly a price.

      ———-

      Still, appreciate your view and thanks for your note again. It pushes us to think harder and make the platform better 🙂

      I sincerely hope we shall impress you too, someday…!!!

      so long,
      Sharad .. 🙂

      Reply
      • Hi Sharad,
        Appreciate your efforts to reply to my post. Intention was not to offend anybody. But in the current world where every single thing in our life being marketed and made business you should be ready to face hard questions some times even very stupid questions when you come up with new business models 🙂

        The key thing is how to gain customer confidence of even targeted customers. My personal view is just by making outstanding user interface it may feel attractive but not confidence booster to invest. Simply because investa is new.
        For me if you really mean to make a difference and ‘Pay if it works’ is not a gimmick and you use it to show your confidence on your expert view, if your fund selection under performs below the category average you should pay the customer the fee you are charging for that quarter. Now you are just saying that no fee in that quarter, where customer ‘may’ have lost even lakhs. The complete risk of investing based on your expert opinion and a situation such that if all 4 quarters is under performed, eventually investa have lost nothing but the loss of investor can be even in lakhs. Of course no business model based on market can be always correct but the current way in which you have presented, didn’t create a punch in me to try your portal frankly. Currently its just another platform.

        For me personally there should be some thing different which investa is doing, to select above MFUtilities or individual fund agents or 100 s of blogs which always keep updating and comparing the best mutual funds of the year.
        I invest only in direct and even if i know to select the funds my own, i would definitely try and promote investa if your tag line is ‘pay if it works else we pay you’ which i feel the challenge and punch at least till initial 3 years of investa. Its will give that extra confidence in investa. We believe you, we invest with you, We are ready to pay you when we are in profit ,now do your business model take up the risk of paying the customer at least the fee when your experts fail. 🙂

        My opinion may change after seeing invetsa’s 3 or 4 years performance. 🙂

        Reply
        • Hi Vinod,

          Thanks for your reply.

          No offence either-ways, please feel free. Though challenging, I respect the views that you have presented. At times these discussions do an inception of an idea… 🙂

          Let’s look at service models across industry and what is the best mode of compensating/satisfying clients.

          A restaurant/coffee shop at max gives you a replacement or doesn’t charge for the food that you didn’t like.

          A delayed flight at best puts you on another flight or refunds you the fare. It doesn’t pay for your lost opportunity in business due to flight delay.

          A doctor doesn’t do either. No matter what. (exclude the cases of negligence and mal-intentions as we are talking generic cases here)

          … the list can be longer.

          Any service provider at max ‘may’ give you money-back. Hardly any of them state that as a policy. They do it on a case basis. If you haggle, then only you get it.

          We have at least made it a no-questions-asked-policy.

          Consider financial advice. There isn’t any other advisor who is even claiming this, and they charge much higher fees. That’s a difference we are making in creating accountability.

          If we look around for suggestions on how to find good advisors, the hardest test that anyone would subject an advisor to; is pay-for-performance. That’s what we are doing.

          Nevertheless, your point is interesting. Get paid for upside, pay for downfall.

          Let’s understand the same.

          See, no forecasting predictions are 100% right. Not even the fund managers.

          What is important that an advisor is less underperforming in cases where he fails and more outperforming in cases where he is bang-on. That’s what fund managers aim at, to create a great fund and that’s what advisors try to do in selecting funds.

          A pay for performance and pay-back for downside can work only if fee is linked to AUM. That’s where a business can make money by being more right. However, such business model won’t work on a flat fee.

          Consider this: An advisor’s recommendations are 50% outperforming and 50% underperforming over evaluation windows, but aggregated over long period of time the 50% outperforming has added much more value than the value reduced by 50% underperforming. Overall, the advisor has done an awesome job.

          On a flat fee structure, the advisor gets zero money (+50 -50 = 0) while the investor has been added value and she is better off.

          So such model can work only when we link the fee to performance based on AUM. Then only advisor gets paid something.

          However, the moment I put a tag on AUM, I get akin to a % fee. And our understanding is that a flat fee appeals more to investors. In few weeks of launch, we have got very good feedback on the same.

          Something on a % based fee can make sense for HNIs where they may not mind paying that. This is just my assumption.

          As per early signals, we have started receiving enquiries from HNIs on the fee structure 😉

          Having said that, we have taken a first step towards building a clean platform for investors. We shall build upon it to make life easier for investors.

          As I said earlier, you may have done an inception of an idea… 🙂

          Regards,
          Sharad

          Reply
          • Personally i like to see more options available for customer. By saying ‘pay if it works else we pay you’ i never meant for fixed rate. For sure it will not be interesting for a business model perspective. I am not against this kind of platforms but i like to see a win – win situation. My idea was to provide multiple options in your portal. There should be an option which customer feels to take the challenge for higher returns

            From Customer perspective this percentage can be saved by selecting direct option instead of investing via agents and can try your recommendation for better returns

            If i get 15 to 20% profit for my investment of of 10L, i don’t mind paying you 10000 Rs fee(1%) 🙂

            With flat fee structure you may get customers. I doubt sustainability when you get a competitor. (my personal view)
            In your examples of
            Coffee shop – Indians are addicted to coffee already so they go to coffee shop and all coffee shop behaves the same. In this case, leave addiction instead people are not even used to direct option which you can understand by percentage of funds handled in of the direct option. So no way people would have same feeling like that towards investa to say come we will just try a cup of coffee 🙂

            Flight :- Is the requirement of the day. You are not left with other choice to attain the destination you want in that speed. Investa is not proved that customer is not left with any other choice 🙂

            Doctor :- For sure investa has not become as critical as this, that no matter what, people have a blind belief that every thing will be fine as when they see a doctor. 🙂

            To be in any of the consistent state above , Investa have to prove in next 3 years till that you can give
            Coffee kharab, Next coffee free
            Flight delayed another ride free
            or even free operation (if you survive) 🙂

            I personally still stand in my view that investa should come up with more win-win situation from customer perspective to be the talk of the town. 🙂

            Reply
      • Yes,

        I agree with Sharad. His offering is great. Charges are negligible – we spend more on a cup of coffee every day.

        Thanks Sharad for your efforts.

        Reply
    • Hi,

      but Invezta’s fee is very small and fixed. You can invest any amount but the fee they charge is fixed. Besides, the fee is negligible if you see the benefits the portal brings – dashboard, advisories, easy of consolidation and no annual charges by way of commision every year. Am I missing something?

      Reply
  26. I dont about others, but if you market such things via your blog, atleast i am not going to hit your blog again for sure.

    Reply
    • Dibya-Please read my last sentences of this above post. I am not here to push any products for my OWN benefit. Direct Mutual Funds are MANTRA of day. No one can deny it. This is just a push in that direction.

      Reply
      • Hi Basu,

        I cant find words in english to praise you, You can bindly ignore dibya comments & it doesnt make any difference to you even dibya clicks or not but you replied considering dibya may loose useful information in future if she doesnt visit again . You treat each & every one as important equally & that is why many respect YOU.
        Hats off 🙂

        Reply
        • Kiran-When I am writing to spread the knowledge but not write for paid content, then why to fear?

          Reply
          • I agree with you Basu…

            By the way I am planning to invest in MF online through invezta based on this post, I will give it a try with small amounts and see whether invezta recommendations beats my portifoio (ofcourse in my portifolio more than 50% is basu’s recommendation) returns percentage or not ?

            Reply
    • Dibya and others
      It’s easy to blame someone.. Don’t just jump the gun. He is a doing a great job and helping others whom he doesn’t even know.. A few years back i have no idea about any of the financial product but today i am in position to give heads-up to my friends.. Blogs like this helps common people know abt stuffs around.. If someone is pro, he or she wouldn’t even mind to hit the blog.. Remember it is benefiting someone, if you not interested move on.. Give some break and space.

      Reply
      • Elam-Thanks for your belief on me. I never let down anyone on such a belief.

        Reply

Submit a Comment

Your email address will not be published. Required fields are marked *

three + seventeen =

Share This