Delhi-based investment startup, WealthBucket has recently secured INR 18 Crore from Vinod Khatumal, NorthStar and other High Net Individuals (HNIs). The startups manages an online investment platform that gives options to infuse in Large cap schemes, Equity mutual funds, Small cap funds and Equity mutual funds etc.
According to the Association of Mutual Funds in India (AMFI),SEBI-led association that registers mutual funds in India of all the registered Asset Management Companies, states that assets Under Management (AUM) of Indian Mutual Fund Industry as on November 30, 2019 has crossed a landmark of INR 27 Lakh Crore and stood at INR 27,04,699 crore. The AUM of the Indian MF Industry has grown from INR 8.22 trillion as on 30th November, 2009 to INR 27.05 trillion as on 30th November, 2019, about 3½ fold increase in a span of 10 years. The MF Industry’s AUM has grown from INR 10.90 trillion as on 30th November, 2014 to INR 27.05 trillion as on 30th November, 2019, about 2 ½ fold increase in a span of 5 years.
The fund will be used to increase its employee strength to 100+ and expand its operations PAN India. Along with this, the funds will be used in technology to simplify the KYC and investment process. The startup also plans to enable insurance & investment in stocks via their platform, according to the company’s official statement.
"Our aim is to invest this money in building our technology and operational team. We will focus on the under-served segment of the market. That is, the people who are not investing because of complicated investment process & lack of knowledge," said Pulkit Jain, Co-founder of WealthBucket, said in the statement.
Making Investments Easier and Simpler
The online investment platform,WealthBucket already has nearly 300,000 visitors and has processed approximately 50,000 transactions to date. The startup asserts to have make investments up to 150 crore and more than half are infusing money for the first time. The online app and investments are cost-free and do not require a DMAT account for performing the cited services.
"Today, every millennial is considering a better proposition of investment to real estate and gold. Mutual funds comes on the top of the list. Previously, only high-commissioned shares and mutual funds were sold through financial advisors. Our experts create low-commission portfolios for retail investors and strive to make investment a hassle-free experience," Himanshu Jain, Co-founder of WealthBucket, said in the statement.
The investment startup was established in 2018 by Pulkit Jain and Himanshu Jain with an initiative to render an online platform that associates customers planning for investing in mutual funds. It also decides to expand its nexus of mutual fund distributors to introduce mutual funds in tier-II as well as tier III clientele.
"We strongly believe in the idea and the team. WealthBucket has developed a unique algorithm that connects the investor to the right type of investment," NorthStar and Vinod Khatumal commented.
Vinod Khatumal is an experienced investor and has trained various startups in India as well as abroad. His other investments are Devanagri and App Store.
Himanshu Jain is an alumnus of ISB Hyderabad & a CFA. He has more than 10 years of experience in corporate and consulting with McKinsey. On the other hand, Pulkit Jain is a CA (Chartered Accountant) with more than 10 years of experience. Before WealthBucket, the two co-founders initiated LegalRaasta, which has a headcount of over 150.
New Players and Growth of Mutual Fund Industry
According to the latest data of AMFI, the asset under management (AUM) of the industry rose by over 13 per cent ( INR 3.15 lakh crore) to INR 26.77 lakh crore at the end of last month, up from INR 23.62 lakh crore at the end of December 2018. The AUM growth seen by the 44-member mutual fund industry in 2019 is significantly higher than 7.5 per cent witnessed in 2018. However, the growth was much higher at 32 per cent in 2017, when the asset base expanded by over INR 5.4 lakh crore,reported Mint.
With this, 2019 becomes the seventh consecutive year wherein AUM soars after falling down in the previous two years. The AUM of the Indian industry has surged from INR 8.22 lakh crore in November 2009 to INR 27 lakh crore in November 2019, indicating an over three times rise in last 10 years.
Recently, Mukesh Ambani-led company, Reliance Jio Infocomm is reportedly setting foot in mutual funds and investment niche via its digital payment application, JioMoney. The online app helps digital payments like mobile and DTH recharge, daily payment, pay insurance and other finances.
According to Mint’s report, a senior official of telecom firm said that Reliance Jio has been hiring for its mutual fund segment. The Indian mutual fund industry which comprises 44 players is worth INR 27.05 lakh crore.