Investment and technology: Customised portfolios, SMS notifications, 24×7 tracking make investment easy

Published: July 21, 2020 12:16 PM

As the needs of every customer are different, technology is now making it possible to generate customized portfolios for every customer.

Investment, equity investment, technologyThe investment process is also very simple, the deployed model generates the advice for individual customer basis the time of entry and the risk profile

By Arun Chaudhry

Hunting for quality stocks and creating a solid portfolio is a tough job, not only is one supposed to analyse 100s of parameters liked to 1000s of companies, but also look at the varying market situation and ensure that the chosen portfolio is aligned to it at all times thereby giving it an ability to deliver a superior return over time, this makes it a lot of combinations to work on. What makes it even tougher, is situations like the one we are in right now, unprecedented, difficult to understand and analyse the impact and even tougher to predict the recovery and the time linked to it.

From where I see it, customers’ needs are simple, they want a stable and time aligned portfolio which can help them generate alpha over the indexes. If we look closer, this need can be clearly split into two goals: a) quality companies with very strong fundamentals and a clearly visible future growth trend b) a portfolio which is flexible enough to withstand market fluctuations and also align to them effectively. For both these goals to be self-attained by the customers themselves, they have to study almost all possible companies, all possible parameters linked to these companies, changing market dynamics domestically, changing international landscape, to mention a few, this is not possible for a person who does not look at only the stock markets to earn a livelihood. What I would recommend is to go for experts, because they have access to a large amount of data & the necessary tools, models to analyze it and generate a solid portfolio. Not only this, since the needs of every customer are different, technology is now making it possible to generate customized portfolios for every customer.

Such portfolios are called curated portfolios, they have the ability to deliver advice in a completely unbiased manner being backed by robot defined and human-managed statistical and quantitative models which are customized for every customer who is invested in them. We have been working for long on such models and have been able to deliver them to our customers with the help of technology. This is a great offering for all clients who fall in the ‘Money Rich Time Poor’ category and are looking at wealth creation solutions. Not only this, but it is also a very unique solution for all clients who are looking at expensive Portfolio Management Service at affordable prices. The investment process is also very simple, the deployed model generates the advice for individual customer basis the time of entry and the risk profile, the generated advice is shared to the customers via multiple mechanisms such as email, SMS, notifications, which once approved is automatically invested in. All these models can be tracked for every investment and its outcome 24*7. Making it a very unique solution in today’s time at a very affordable cost.

Being financial advisors for over 30 years now, we can say with certainty that staying invested in equities through a process-driven engine is far more advantageous than to invest through singular recommendations which have a relatively shorter shelf life and are sometimes unscientific due to the human bias involved. This goes a long way in building sustained returns over a period of time for wealth creation.

(Arun Chaudhry is Head Online Business, Broking & Distribution at Motilal Oswal Financial Services. The views expressed are the author’s own. Financial Express Online does not bear any responsibility for their investment advice.)

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