Emerging E-Investment

Technology is making our life simpler. There are many areas where “In person visit” is replaced with online platforms. Examples include Banking, Shopping, bookings, etc. which are already used by many. One more has been recently added to the list, “Investment”.

This is a very recent trend where many retail investors are using various online platforms to invest in capital market, like for Equity – NEST, Bolt or other in-house developed web based platforms or mobile app and for Mutual Fund- BSE StarMF, CAMs’ and AMC’s owned portals. In this paper to paperless transformation, the companies have taken many new initiatives and have come up with innovative solutions to attract customer base, be it the attractive web designing or providing a user friendly platform. One more addition in doing online investment is Robo Advisory. Robotic advisory will help you to choose your investment schemes or company based on certain pre-defined criteria. It’s quick and easily serves the basic purpose of risk profiling and advisory. As per NSE October data, 23.33% equity and related product transactions are executed from Internet and Mobile. Even For Mutual Fund, Mobile App users cum investors are increasing gradually.

Before Equity online platforms came into light, around 2011-12, excecutives had to visit clients to get all the investment related documentations filled and signed. Investors also were required to call their broker for trading. Now there is a shift where investors trade by themselves through Mobile device and not calling equity executive for trade. It’s surprising to see individual above 55 years, using these platforms like young generation due to the features and ease provided by them. Apart from basic features of transactions, these online apps also provide value added services like predefined portfolio bucket, corporate action on a click, and expert comments on your existing portfolio thus becoming “Arjuna” for your investment.

On the other hand Mutual Fund Companies like Franklin Templeton, ICICI Mutual Fund, HDFC AMC, etc have come up with their website & app for all Mutual Fund related transactions. These apps also include initiating Systematic investment, purchase, Switch, Systematic Transfer Plan, changing details, etc. with just few clicks. These are the facilities which make you to act “RIGHT NOW.” Many of the retail investors are expert in using multiple platforms and compare each other based on their features and applicability. When you are comparing these quick and hassle free platforms with the tedious paper process, you will definitely chose to “try it at once.” There are key advantages and disadvantages of these moving forward investment tools; we find it generally like,


Key trigger in technological based investment is that, complete details in your hand with basic analysis like- tracking your investment performance, some comparative statement of your investment, makes you to take decision and act appropriately. Online platforms have replaced few actions of physical investment process as below,

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There are some glitches initially in any new technology before it sets a trend and you have already witnessed in some past cases. In those scenarios, investors shift to offline and paper process. But gradually you will find yourself comfortable with new tech platform as they are improving day by day. For example, once I have tried to login in one of the Mutual fund Company’s web platform, I faced so many difficulty while login in the Mobile browser. Later they have come up with Mobile Application which is very smooth to work on.

Fundamental and technical analysis software or platforms are there with advanced features in the equity field. But we are not talking for this professional tech. As a retail investor, it won’t be    a Wonder, if you find the following features for your future investment,

  1. Qualitative Data and information based advice on these platforms
  2. Goal based advice

For Example: for marriage planning, you will receive an alert on particular date that it is time; you have to initiate the fixed amount switch in liquid fund from equity fund. After that you will click on “Execute intermediate plan” and it will act automatically till marriage funds get arranged.

  1. Pointing different opportunities in investment, based on your actual portfolio performance. Indicating all your Migration costs and taxes accurately with key advice.
  1. Upcoming Economic level events and risk involved in your portfolio. It will attract your attention on those events bases on your existing portfolio both in Equity and Mutual Fund.

For Example – Interest rate changes, favored industry by government and budget allocation, decisions on taxes and duties for different industries etc. you may not concern about these events actually, but you are always concern about your portfolio performance.

  1. Highlighting all possible and investable avenues across different country and industry in to your login only, with all pros and cons calculated with indicators.

For Example- You have selected moderately high diversification, so system will suggest you a Global ETF. But before investment execution, login will indicate your increasing risk factor is this much and return probability is this much.

At a time of urgent decision, you will execute investment decision at your end, either in Equity or in Mutual Fund. In some platforms, you will find different payment options which does not require Net banking, but it will add more convenience if you have. Your were avoiding some transactions like special situation, additional purchase due to process involved in traditional method but now you are easy to go and you act spontaneously, which will be helpful. Mutual Fund Online is at nascent stage compare to Equity which has penetrated for long time now.

All in all, these advanced investment platforms are updating and improving day by day, as an investor, you will find it useful and make your investment smooth. There is no wonder, If we come across any technological investment platform which only require your approval to execute decision based on your predefined risk and preferences for defined situation both in Equity and Mutual Fund portfolio.

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