Technology to help in investment:Robo-advisory service becoming popular in China for investment advice, more than 1 million investors become users in a year

 

Software based Rob-Advisory service is becoming very popular for investment advice in China. More than a million users have been added over the year with Robo-Advisor Service, a joint venture by veteran businessman Jack Ma's company Ant Group and America's Vanguard Group. The name of this robo-advisory service is PurpleTou, which means 'help you in investment'.

To join this service started in April last year, an investment of at least 800 yuan (about 9 thousand rupees) is required. PurpleTou recommends creating a portfolio by choosing from 6000 mutual funds based on the user's risk appetite and investment goals. The mutual fund market in China is $ 32 trillion. In view of this, the Vanguard Group has joined hands with the Ant Group.

Researchers estimate that given the way in which there is a trend in China about robo-advisory, the robo-advisory market here could go above $ 1 trillion in the next 5-6 years. PurpleTou's asset under management rose 60% from January 1 to the end of February this year, reaching 6.9 billion yuan (7.7 thousand crore rupees).

What is robo-advisory service?
Robo-advisory service is a digital platform for investment advice. It is recommended to invest on the basis of software and algorithms. Most Robo Advisory Services provide advice based on the history of the fund, the risk potential of the user, etc.

What is the status of robo-advisory service in India?
Omkeshwar Singh, head of investment advisory firm SAMCO Securities, says robo-advisory in India is still in its early stages. As such, the number of organized investors in the country is small. Of those who are, only 10 or 15 per cent rely on advisory services. Singh said that it is better to seek the advice of an experienced investment advisor.