With all the technological progress that has been made over the past few decades in the field of finance, investing still remains an arduous task for most retail investors. Gaining access to reliable information remains a challenge, and potential investors find it difficult to trust advice coming from institutional channels due to the conflicts of interest involved.
Expowealth, our FinTech Mumbai startup of the week, is on a mission to help retail investors easily invest in mutual funds by offering commission free investment advisory and fulfilment. The founders, Kushal Kothari and Arjun Bharadwaj, MBA’s batchmates from IIM – Ahmedabad (2014), feel that there is a distinct lack of transparency in the investment advisory market, with many consumers not fully understanding the terminologies employed by Asset Management Companies to describe their products. We spoke with them to find out more about this exciting venture:
1. Investment advisory and sales is a tricky market. What motivated you guys to enter this space?
Kushal: After graduating from IIM-A, both of us were in cushy jobs. I was at the Aditya Birla Group and Arjun was working with Bank of America – Merrill Lynch. However, even within these environments where the average person was well versed with financial concepts, we found that there was a hesitation to put money into the market and most people preferred to park their funds in simple savings accounts. They preferred to not make a bet at all rather than rely on information they did not fully trust. We immediately sensed a big opportunity. A few months later, we quit our jobs and started Expowealth.
Through Expowealth, we want to be on the side of the investor. A lot of the channels that financial institutions have created to push their products are only focussed on getting clients to make…