Robo-advisors have arrived in India but they have not yet attracted investors in masses. Do you think investors will be able to trust them?
Mutual funds themselves haven’t attracted the masses yet! Robo-advisory is a new concept and it would grow with industry penetration and marketing by respective firms.
However, in a short time, since the robos have existed, the response has been promising. All of us have been trusting machines in our daily life. At Invezta, we see investors equally comfortable with algorithm-driven advice. People love value. They find our revenue model (direct plans with a flat fee) aligned to their interests and this gives them a lot of trust. Even the high net worth individuals have started using it, which shows growing comfort and adoption.
Do you think robo-advisors would be able to do holistic financial planning or would they be restricted to platforms where you can buy and sell products?
It’s not a question of capability but of time. When do they do it? As the penetration of mutual funds increases, the need for financial planning shall also emerge. The robos would crossover from investment planning to other financial products and offer comprehensive financial planning.
