Transforming Wealth Management with AI Innovation – InvestorAi

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Please tell us about the company and what made you develop this platform? What is the market gap or opportunity your platform is addressing?

We believe that the wealth management market is underserved, a small proportion of people who could invest do and we believe that the traditional advisor/manager heavy model must change to create interesting products that engage people, help them invest and ultimately benefit from the stock market.

DIY investing is a global theme and the neo brokers have done an excellent job in helping democratise it. We believe that the user journey is still too fractured and this is limiting activity as evidenced by only 20% of demat accounts being active. The user journey has four components – education, exploration, execution and explanation.

Execution is well handled by the broker community, but understanding why you should be investing (education), figuring out what to buy (exploration), how it’s doing, when to sell it and what to buy next (explanation) is done less well and often off-platform. We believe that all of this should be in one place and easy to understand.


How does the InvestorAI work, if you could explain in detail? 

For anyone interested in the markets, staying invested is one of the most important things. InvestorAi uses advanced AI to make stock recommendations, feed these through portfolio construction modules to create investor friendly baskets and then delivers this through one click executions from directly inside your broker’s app. More importantly it also tells you when to sell these investments and what to buy next.

Can AI recommendation platform be more full proof than that of the fund managers who make recommendations based on various parameters?  

It is different and there is a place for both. AI is particularly strong in dealing with vast data sets, whereas as humans we make decisions on much less information and a degree of instinct/gut feel.  I believe that AI will consistently do better in the short term (less than a quarter) and by benefiting from compounding to create strong long term results. The best human counterparts will come into their own with longer term predictions or where they have an information disadvantage (knowing something that is not in the public domain.) A balanced portfolio approach should have both human and AI components.

How does investorAi aim to build trust among its key stakeholders like Broking firms and even investors in the business.

Our success will be defined by the outcomes that end investors achieve. By focussing on this we will be delivering for our broker partners.

We will continue to add new products to increase our available market and attract more people to AI investing. In everything we do we will strive to provide actual metrics on our success – transparency is key. Too often AI companies mix transparency with data availability. We want to communicate some simple metrics that make our results easy to judge.

Where is your startup based? Why do you think that is the best place for you?

My team is in Bangalore with our customer facing activities in Mumbai. Bangalore provides a fantastic talent pool, even if the traffic is awful!

Who are your competitors and how are you better from them?

The majority of competitors exist in the quant investing space which accounts for less than 1% of the MF market in India compared to 33%+ in the US. There is so much growth available.

We differ through our choice of AI which we believe will provide a long term competitive advantage – neural nets vs symbolic (logic and reasoning). In addition we are providing a number of different product styles – long only equity baskets, intra-day, MTF and equity long short.

Tell us the milestones or achievements that you accomplished in the past 12 months or so?

  • We closed our Series A round very quickly and brought on a high calibre investor
  • We have doubled our broker customer count
  • We have launched a delivery platform – integrated with 3 brokers – PL, JM Financial and HDFC
  • We have launched an MTF product

Have you raised funding? If yes, then we would like to know the details and your future plans?

  • Series A completed this year. Rs. 80cr raised from Ashish Kacholia.
  • The financing is being used for growth – customer acquisition and product development

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