 "MFs consider 'robo' advisory route to woo retail investors")
The move will help in reducing the cost for investing in a mutual fund scheme and eventually attract retail investors.
Online wealth management services provide robo advisory in India but such services are still in a nascent stage. However, it has become popular globally.
Robo advisors use algorithms to develop an asset allocation plan and help in investment. They also help clients to monitor their savings and deviation in their asset allocations against the target.
According to sources, several fund houses are considering the idea of robo advisory service to attract retail investors.
"We are looking to launch the robo advisory service on a full scale. Currently, we give option to an investor to filter four questions and take a decision based on this and now we are looking to expand this into a full scale service," Jimmy Patel Chief Executive Quantum AMC said.
Explaining the benefits of such advisory service, ICICI Securities Senior Vice President (Financial Planning and Customer Service) Abhishake Mathur said: "They help customers make more informed decision on what to buy and how much of an asset type to buy."
The platform offers a very simple, user-friendly interface and are quite convenient even for non tech-savvies. The route brings ease to the decision making process.
The route will help entry level or small investor, while HNIs (High Net-Worth Individuals) would not be impressed with the idea, Patel said.
Last year, brokerage firm ICICI Securities had announced the launch of a robo advisory platform to help its customers take timely investment decisions.