The competition in the online mutual fund distribution space is heating up.
BankBazaar.com, a personal finance website through which customers can compare banking services like loans, credit cards and saving accounts announced its plans to get into mutual fund distribution.
“With the largest range of credit, savings and insurance products, investment is the next natural step for us. Investments are a crucial part of the financial portfolio and mutual funds are an important vehicle for investment, especially for retail customers because of their small investment factor, periodicity and ability to create long-term wealth. With our proprietary research and technology, BankBazaar.com aims to provide unbiased advice and bridge the gap between the retail customer and an investment of their choice,” said Adhil Shetty, co-founder and CEO, BankBazaar.
BankBazaar.com is planning to provide robo-advisory services in which it will use algorithms and model portfolio to construct client portfolio. “In time, we hope to build an automated system that would make the entire process completely paperless,” said Shetty.
Apart from BankBazaar.com, PolicyBazaar, an insurance broker which distributes insurance policies has also started mutual fund distribution called PaisaBazaar.com from November 2015.
A senior official from PaisaBazaar.com told Cafemutual that the company has leveraged its existing customer base to expand its mutual fund distribution business. In just five months, the company has close to 1,000 active investors, claims the above quoted official. “We will start providing robo advisory services soon, added the official.
The online MF distribution space is already getting crowded with many players eyeing to cash in on the growing e-commerce trend. For instance, Fundsindia, 5nance.com, Zerodha.com Fundsupermart, MyUniverse, Scripbox and Arthyantra are online distributors which claim to follow robo advisory model.
