Investment without information and knowledge could be disastrous and can cost you your future. With plenty of information floating online, you can educate yourself or to be more precise, you can confuse yourself. Mutual Funds in one of the investment types you see a variety of Television Commercials for.
Mutual Funds in one of the investment types you see a variety of Television Commercials for. Let me remind you of the short line repeated after every MF TVC if you didn’t pay attention yet. It says “Mutual Funds are subject to market risks. Please read the documents carefully before investing.” What does that mean? Is it enough to confuse you?
According to Wikipedia, A mutual fund is a professionally managed investment fund that pools money from many investors to purchase securities. We will surely come up with a basic guide to mutual funds sooner or later. For now, let us talk about the three working professionals whom the article is based upon.
Varun Mundra (IIT Graduate), Mitul Daga (an MBA) and Mayank Mundra (IIT Graduate); three people behind RupeeVest, an online investment and research platform for Mutual Funds and Corporate Fixed Deposits, aimed at providing a safe and hassle-free investment experience by leveraging smart technology and in-depth research.
With competitors like MyUniverse, FundsIndia, Value Research and Morningstar etc. the mutual fund’s management industry is bit competitive. According to one of the founders, RupeeVest’s tailor made portfolios help investors identify and achieve various financial goals, and this is helping them win out the competition. For now, the firm claims to manage over ₹42 crores worth of assets (Assets Under Management).
While a majority of mutual fund rating agencies and websites have primarily used only historical performance as their rating criteria. However, it has been seen that they are of little help to the investors as there is no recent documented history or track record of their top rated funds’ performance.
The mutual fund (MF) industry has had a compounded annual growth rate (CAGR) of 18% over the past 10 years. However, the CAGR over the past 6 years has accelerated further to 38% taking the industry AUM to ₹17.55 lakh crore as on March 2017. India’s share of Assets under Management (AUM) of MFs to GDP stands around 7.5% which is way below that of developed economies like US, Australia, UK, etc. where the share stands well above 50%, showing tremendous growth opportunity.
RupeeVest is solving three major problems in the industry:
- Biased / Ambiguous Research: The most popular mutual fund rating agencies and websites have primarily used only historical performance as their rating criteria. However, it has been of little help to the investors as there is no recent documented history or track record of their top rated funds’ performance.
- Inadequate Information: There is widespread confusion among investors regarding the concept and various features of different categories of mutual funds. For example, most individual investors are unaware of debt mutual funds which usually provide a higher post tax return than bank FDs.
- Misleading Advice: Agents often give their clients unsuitable advice or incomplete information, to sell products that offer high brokerages. As a result, the client ends up with products that do not suit his risk/return appetite.
The idea struck Varun’s mind when he was quite into investing his surplus to some good schemes but the procedure was tedious and time-consuming. Every time he had to sign a bunch of papers, study the market well and analyse the trends and data. The key features were not available in an easy-to-understand format. Just like the TVC says to read the documents carefully. I suggest you try doing that.
He then decided to come up with a simplified platform which can help others like him. Several tools developed by the firm helped to gain initial traction. However, the very first customers were friends and relatives and the next came as a trust by word of mouth. Organic search results also helped RupeeVest to gain customers through search engines.
Varun previously worked as a Software developer at Oracle Financial Services Software Limited after completing his B.Tech in Computer Science Engineering from IIT Kharagpur. Mitul worked as Associate Manager – Investments in Bharti AXA Life Insurance after completing his Bachelor Degree in Commerce from St. Xavier’s College, Kolkata and has done his MBA (Finance) from NMIMS, Mumbai, 2008. And Mayank previously worked as Associate Software Developer at Flextrade after completing his B.Tech. and M.Tech. in Electronics and Electrical Communications from IIT Kharagpur.
About RupeeVest’s future plans Varun says, “We aim at adding PMS and Bonds/NCD offerings to the existing product portfolio. We also aim at developing an equity research platform that provides stock analysis with powerful tools to help investors focus on key indicators and events which influence price movement and cut the noise out and offering professional quality fundamental and technical equity data to individual investors, a space which has been largely dominated by unorganized players as of now.”
Some of the favourites of Varun Mundra
- Entrepreneurs who inspire him – Elon Musk, Jeff Bezos
- Books that he love – How to Make Money in Stocks by William J O’ Neil, Marvel Comics
- Blogs that he read – Safal Niveshak, Collaborative Fund
- Places that he want to visit – Singapore, Greece, Miami
- Cars that he want to buy – BMW i8, Hummer, Lamborghini
- Communication tools that he use – Emails
- Advertising platforms that he use – Google