When did you launch this portal and how many users are registered with you?
Sandip Southekal (SS): We launched the site recently on July 24th, 2013 and we have got around 60 active users so far. Over 800 unique visitors have come to the site organically. We are registering 10-20 investors every week with minimal marketing. We have received positive feedback and, encouragingly, suggestions; this clearly shows a need in this area.
Do you see room for new players like you when there are already such options available for investors?
SS: There has been a steady growth over the past month even though we have not undertaken any marketing other than a few social media initiatives. My partner and I strongly believe that we can make a difference to the online financial ‘do-it-yourself’ (DIY) investing and I hope we get the opportunity to showcase our plans.
Will you launch an advisor version?
SS: Currently, it is only meant for investors though a small percentage of advisors are also using it. We plan to launch a separate portal just for advisors in the near future.
Will the advisor version operate on a sub broker model? Will they have to share their trail commission with you?
SS: No, it will not operate on a sub broker model nor will they have to share their trail commission with us. For a monthly fee, they will have the tools to build diversified portfolios for their clients, provide weekly and monthly detailed reports and receive alerts when their clients’ portfolios are due for rebalancing. The monthly flat fee will however be based on the advisor’s AUM.
Through this strategy, we can reach out to several small investment advisors who do not have sophisticated tools to maintain a client's portfolio at a reasonable price without eating into their trail commission.
Is there any fee for investors to use your platform?
SS: It is completely free for investors to use and create and track upto five portfolios on our platform.
Is demat account necessary to transact?
SS: Currently an investor can buy from any online broker (if they have demat account) or mutual fund distributor (if they do not have demat account) of their choice. We have a list of over 50 top online brokers and distributors who they can transact with. We want to provide an unbiased choice for an investor so we leave it to them to choose. In the future, for those who do not have demat accounts, we will make it easier by providing them the ability to directly buy mutual funds and ETFs through us.
Apart from mutual funds, which other products can be bought through your portal?
SS: An investor can build a portfolio consisting of mutual funds and ETFs only. We believe that for busy working professionals, mutual funds and ETFs are the best way to build a fully diversified portfolio with proper asset allocation instead of speculating in individual stocks. We want to make it easy by providing few options rather than a wide variety.
