RightFunds - Investing Made Simple Rightfunds Investing made simple. FinTech Founders Vasudev Gupta Chennai 5 1 Web Website Facebook What is RightFunds?Rightfunds is an Investment Platform for the best Equity, Debt & Tax Saving Mutual Funds. Tell us more about your team ? Our team consists of Research analysts, Software developers, UI/UX designers, Operations specialists and sales executives. We constantly look at ways to do things better, so innovating as a means to overcoming hurdles is deeply ingrained in our company’s culture. We also encourage cross-functional training outside one’s own department this fosters creativity and helps understand & appreciate each other’s work. The founder hails from an entrepreneurial familial background. Having successfully handled various positions in his family business and a brief working stint outside, he has forayed into the Fintech sector with his start-up Rightfunds.com. He holds a Master’s of Science degree in Entrepreneurship, Innovation & Management from Imperial College London and a Bachelors degree in Engineering from the University of Nottingham. How did you come up with the idea ? I had seen individual agents sell mutual funds / insurance products door to door. Having bought some funds through an agent I soon realised what a versatile product mutual funds were. Some quick market research said that mutual fund penetration in India stood at roughly 4% as against the west where It was close to 60%. I knew there was a gap to be filled, and it could only be effectively catered to by leveraging upon technology as a means to disburse the service. What problem are you solving ? To an average person with no financial knowledge buying, selling & monitoring stocks is too risky or too time consuming and Not everybody can afford to buy a piece of land as investment. The only other alternative one is left with is to put his money in a fixed deposit or savings account and make do with the 4 to 6.5% returns they provide before deducting tax. Mutual funds on the other hand offer a professionally managed and highly diversified portfolio of stocks and corporate bonds in which gains are either tax-free or indexed. It is not uncommon to see equity funds yielding returns of over 25% year on year. How does it work ? The signup procedure at our website Rightfunds.com is fairly simple, an account can be created within minutes. If an individual is KYC (Know Your Customer) compliant as required by the Securities Exchange Board of India, he may begin investing immediately. If not the E-kyc procedure could be completed online via a webcam. Once the procedure is complete he gets to choose from a list of portfolios based on his time horizon and tolerance for risk. The orders are placed on our platform which we route to the Bombay Stock Exchange where they are executed. The withdrawals can once again be made through the website and the money is credited back to the individuals account in a matter of 3 days. What is your target market ? Our platform is optimized to handle SIP investments, In other words monthly investment plans where a fixed amount is automatically invested from an individual’s bank account every month. Investments can be anywhere between rs.1000 to a few lakhs each month. There is no right time or age to begin investing, the sooner the better. Our target market is young working professionals. What is your competitive advantage ? The backend of our platform is fully integrated with Bombay stock exchange’s Star MF, This gives us an operational edge over the conventional players who have partnered with third parties / developed their own software to deal with backend order processing. We can handle a large number of orders in real time with minimal operational setup rather than batching up orders and sending them once or twice a day for execution. This not only ensures a quick turnaround time for our customers but also minimizes chances of human error. How much time did it take you from conceptualization of 'your venture' to actually launching it in the market ? While the idea has been lingering in my mind for a while. We started working on Rightfunds in Oct 2016 and were out with a functional prototype by Mar 2017. We continue to optimise and add new features to our website based on feedback we receive from our existing customers. How do you plan to market your product? What are your customer acquisition strategies ? Happy customers are the best brand advocates. We focus on giving the best service possible to all our customers who in turn bring in referrals. We also promote our website through online media to raise brand awareness. What is the revenue model ? Rightfunds currently does not charge the customers any sort of fees to use the platform. We are instead compensated by the Asset management companies who pay us a commission for the funds we bring to them. What do you want to achieve from this? What is your larger goal or vision ? Mutual funds are an often misunderstood product. The goal of the platform is to create awareness and provide great returns to investors who do not have the time or expertise to manage their own investment portfolios. We hope to do so in a simplistic, transparent and consistent manner in order to create value. We will also eventually be looking at bringing in foreign investments especially from countries where term deposits yield very low returns. What sort of support and feedback are you looking from the community ? To all those thinking of investing in mutual funds, I would like to say take the leap of faith. The markets have done phenomenally well in the last few months. While it is true that mutual fund investments are subject to market risks, a well-researched and well-balanced portfolio can also create significant wealth over the long run. I would also like to request the regulators to simplify pre-investment formalities so that it becomes easier for robo-advisors like us to disburse this service to a larger number of investors.