While India's young and skilled workforce is now smarter about making their money grow, job losses and economic uncertainty due to COVID-19 has forced most of them to reconfigure their investment and saving plans. As discretionary spend on travel, eating out and shopping comes down, millennials is keen to put the extra bucks to work.
To help this aspirational set of people grow their wealth and meet life and financial goals, India has seen the emergence of a crop of personal finance and wealth management startups that are using technology to engage customers.
With a low entry barrier, these technology fueled ventures are hand-holding first time investors by using algorithms and AI to assess risk and make smart investment decisions.
According to NSE, historically, India has always invested in physical assets. In fact, Indian households invest about 60 percent of their savings in physical assets like gold and real estate. Insurance accounts for 18 percent of India’s financial investment as against a mere 6 percent for shares and debentures.
As an extension of this reality, India’s retail investors constitute only approximately 13 percent of stock ownership in India and demat accounts are less than 10 percent of the number of banking accounts.
But as this digitally savvy breed of investor shows the willingness to drop traditional assets in favour of equities and mutual funds, are new-age tech-based wealth management platforms prepared to unlock the huge opportunity as the investor, market and economy mature?
To take that discussion forward, CNBC-TV18’s Shereen Bhan spoke to Gaurav Rastogi, CEO of Kuvera; Lalit Keshre, co-founder & CEO of Groww; Atul Shinghal, founder and CEO at Scripbox and Satyen Kothari, founder and CEO of Cube Wealth.