Sapient Wealth Advisors, the largest individual mutual fund distribution firm has joined hands with Venture Catalysts to facilitate investment in start-ups.
Sharing the rationale, KK Ram, Vice President, Venture Investment, Sapient Wealth said that investors have been getting moderate returns across asset classes, be they equity, debt, real estate and so on. “Five years back, people were getting over 20% returns on their investment portfolio. However, generating such a performance is difficult for fund managers. Hence, investors should look beyond traditional options like start-up funding to accelerate their investment portfolio returns.”
Ram told Cafemutual that his company offers membership to their HNI clients in Venture Catalysts. “With this membership, clients can get access to events where they get to know about businesses of start-ups. Based on their assessment, they can take a call if they want to invest in the company directly.”
When asked why clients will invest in start-ups directly when they have the option to invest in such companies through AIF route, RAM said that while fund managers take investment calls in AIFs, investors could take an informed decision by directly interacting with the start-ups. “For instance, doctors may be comfortable investing in a start-up focussing on health care sector instead of an IT company.”
Ram shared that his company will get revenue from membership fees and investment size.
