Wealth management startup Fisdom seeks to add more investment options on app

Photo: Livemint

Robo-advisory startup Fisdom, which helps individuals invest in mutual funds, is looking to partner banks and adding an insurance option on its app to sign up more users.

“Insurance is something that should be live in three-four weeks. We are also working on adding bonds. Over a period of time, Fisdom will have lot more investment products like corporate bonds, tax filing. We’ll be a full-fledged personal finance manager,” said Subramanya S.V, chief executive officer.

Finwizard Technology Pvt. Ltd, which runs Fisdom, raised $1 million in funding from Saama Capital in October, and $500,000 in seed funding from angel investors including Silicon Valley-based venture capitalist Rob Chandra, CommonFloor co-founder Sumit Jain, TaxiForSure co-founders Aprameya Radhakrishna and Raghunandan G, and others.

It was founded in 2015 by Subramanya, a former managing director of venture capital firm Bessemer Venture Partners; Ramganesh Iyer, who was an investment manager with Peepul Capital Advisors, and Anand Dalmia, who was with Macquarie Capital India.

Fisdom lets individuals who sign up for its service choose their savings goal—short term, retirement and so on—and the amount that they want to invest. An algorithm suggests the funds that they should invest in.

“Our research philosophy is not to be very aggressive. It is to generate consistent, relatively safer returns. Our promise to customers is not that every year we will generate highest returns—it is that over a period of time, can we beat your alternative, which is a fixed deposit, consistently,” said Subramanya.

Fisdom makes money through commissions from the funds it sells through its platform.

Robo-advisory firms have a significant market to capture by catering to new and inexperienced investors, as well as existing investors who want to switch to smartphone-ready, lower-cost solutions. Yet, they face a challenge in establishing trust with consumers.

“Gaining widespread acceptance in the Indian context could become another challenge as the solution should inculcate a sense of dependability. Furthermore, acceptance by technologically-averse individuals needs to be gained over a period of time for sustainable success,”said Kalpana B., partner and head, robotics and cognitive automation, KPMG in India.

“From an ethical dimension, robo-advisory services need to provide unbiased recommendations without sole objective of increasing sales. Robo-advisors should make an honest disclosure of the risk involved in the advice and try to maintain investor security by being a true fiduciary. Another question that needs to be answered is the ownership and liability in case of unforeseen consequences, whether a robot will be liable or a person or an organisation,” she added.

Also read:

India: Fintech startup Fisdom raises $500k from angel investors

UK’s Everledger wins Fintech Finals 2016 in HK; Asian startups bag category awards

This story was first published on Livemint

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.