Mutual fund investing platforms are witnessing a massive shift with fintechs entering the market. Nithin Kamath, CEO and co-founder of zero-brokerage stock trading platform Zerodha, which also offers direct funds through its arm Coin, talks about the transformation and the challenge of insufficient retail participation
How has the Indian broking industry evolved with the influx of fintech companies that have drastically changed the mode and method of investing?
While there has been an influx of fintech companies building mutual fund investment platforms, there isn’t much happening in the direct equity business. The reason for this is that it is a lot more challenging, both in terms of regulatory requirements and technology to offer trading and investing platforms. Also, the lower hanging opportunity is to first get people to invest in mutual funds, which is a better-suited product, than in direct equity.
