Zerodha-backed startup Wint Wealth is offering covered bonds structure for retail investors, offering 9-11% returns at ticket sizes starting from as low as Rs 10,000. Wint Wealth is an alternative investment platform democratising debt investment options for retail investors.
Zerodha-backed startup Wint Wealth is offering covered bonds structure for retail investors, offering 9-11% returns at ticket sizes starting from as low as Rs 10,000. Wint Wealth is an alternative investment platform democratising debt investment options for retail investors. In an interaction with FE Online, Wint Wealth co-founder Ajinkya Kulkarni said, “For retail investors investment options have either been low-risk low-return Fixed Deposits or high-risk high-return equity exposure, moderate-risk moderate-return were always out of reach because of high ticket sizes, Wint Wealth is changing that by democratizing one asset structure at a time.”
Currently, the company is focussing on educating more investors about what Wint Wealth is doing, who can invest in what it offers, and why they should consider investing.
“At Wint, we are on a mission to unlock debt investment opportunities for retail investors considering portfolio diversification. Our services are catered towards enabling individual investors enter the debt landscape, previously exclusive only to HNIs and UHNIs, with a ticket size as low as Rs. 10,000. While industry share of alternative assets is $10 Trillion, India accounts for $19 Billion of alternative asset/debt investment share. The potential to invest in alternative assets is huge and the platform is expected to reach Rs 500 Crore AUM by end of the year and Rs 10,000 crores worth of assets by 2024. We hope to make debt investing easy and accessible to Indian investors (retail. HNIs) across the breadth of the country,” said Ajinkya.
Is Wint Wealth different from competitors?
Ajinkya said Wint’s aim is to be an investor-centric and transparent company in the alternate investment space. “We advise and educate investors to diversify their portfolio and not just limit themselves to investing with us rather have a well balanced portfolio. We want people to understand the risk-return profile of the investment and put 10-15% of their overall portfolio eventually in Wint Wealth assets,” he said.
“We have taken a route of one guided by regulations, assets we provide are listed on the exchange and thus, rated by the rating agencies with the end units actually transferred to the investors Demat account providing the much-needed transparency for investors who are putting their hard-earned money in the structures we provide,” Azinkya added.
Traditionally, Debt Investments was initially only available to the Ultra HNIs as the ticket size was between Rs. 50 lakh to 1 crore. Wint Wealth is trying to democratize fixed-income assets for retail investors who can enter the debt landscape with a ticket size as low as Rs. 10,000.
Skin in the game
Ajinkya is happy about the skin-in-the-game rule announced recently by SEBI. As per the rule, key employees of a mutual fund company will receive 20 per cent salary as fund units. These units will be locked in for three years. He said it is a noteworthy move as it creates skin in the game for people operating the funds.
Because of the new SEBI decision, now if the fund manager has a salary of Rs 1 crore, his/her Rs 20 lakh will be in the schemes they run. Consequently, if the fund underperforms, the fund manager will suffer a personal downside. While if it overperforms, he/she will get rewarded.
“The reputation of the fund is always at stake. But when the people operating the fund are investing in the same funds, they have skin in the game – not just financially but also emotionally. If the fund drops 5-10% in value, the fund operator feels emotional pain that drives his/ her decision-making in a true sense. It aligns funds’ and investor’s interests together. In fact, at Wint Wealth, all our team members invest in every asset. Wint Wealth, as an organization, holds 2% of every asset until its maturity,” he said.