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Two large national distributors - HDFC Securities and ICICIdirect have ventured into the robo space with new platforms called HDFC Money and LIFEY.
Investors can use these robo tools to arrive at the right asset allocation for their goals.
Both the platforms will take inputs from the investors regarding their goal, time frame and risk appetite. Post the analysis, the platforms will recommend schemes most suitable for customers as per their risk profile and time horizon.
HDFC Securities said its newly launched robo platform HDFC Money will go beyond mutual funds to also help customers in insurance planning, creating e-will and filing taxes. ICICIdirect's LIFEY will focus mostly on helping its customers accomplish their 'lifestage' milestones with the help of a data-driven model.
Both the platforms won't charge their customers directly. They will generate revenue by selling regular plans of mutual funds.
"LIFEY will assist customers in smart asset allocation and construction of carefully curated portfolios primarily consisting of mutual funds based on fund selection by ICICIdirect’s research. The recommendations are data-driven, based on customer’s risk-taking appetite, and aims to guide them in their financial journey,” said Anupam Guha, Head – Private Wealth, ICICI Securities.
"Goal based Investing is something one can’t overlook, the basic objective of investing is to achieve a financial goal, which could be as simple as holiday trip to a complex retirement planning or child education / marriage. HDFC Money, backed by inputs from a highly experienced team, curates via Robo Advisory the best of the best Mutual Funds that exist in this exhaustive market as per the declared risk profile of the customer," said Abhishek Mehrotra CFA, Head of Investment Products, HDFC Securities.
