Indian investors and traders are in for a treat. From traditional brokers to new-age wealth management startups, all are lining up features to make investment and trading simple to get a play in a space that holds promise but is getting competitive.
On August 17, ICICI Securities, one of the largest broking houses, opened international trading as an option for its clients. Mumbai-based discount broker 5Paisa has an education portal for its traders and Bengaluru-based PhonePe says it has launched six new mutual funds and insurance programmes on its platform.
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These are not isolated events.
Over the last few months, several startups have been expanding their product offerings from mutual funds to broking and insurance. The move assumes significance since falling small savings rates and fixed income returns are reducing secured investment options for consumers.
As well-funded startups such as Groww, Paytm Money and PhonePe expand into stockbroking and trading, traditional players are doubling down on technology investments to ensure they can protect their share of the customer base, say industry insiders.
Moneycontrol wrote on June 22 that international stocks are attracting a lot of attention among Indian consumers. As companies like Tesla, Netflix, Facebook and others become household names, more traders want to invest in these companies and become part of their growth stories.
ICICI Securities joins the likes of Upstox in offering US stocks to Indian traders through its platform. It has tied up with Interactive Brokers, a US-based online brokerage firm, for the service extended to its 48 lakh users.
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“Domestic investors can now trade in US markets across stocks, ETFs, and fixed income products…there is no minimum ticket size and US markets even allow for fractional ownership of shares, so even small retail investors can build a portfolio effectively,” ICICI Securities said in a statement.
Even Bengaluru-based Zerodha, the largest stockbroker in the country, is working on opening up international stocks for its traders.
On the other hand, 5Paisa’s new education application 5Paisa School will help increase investor awareness and help them make money in trading.
The company said it saw many young traders lose money. To support them, it was promoting this free app with short videos and other educational content around trading.
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5Paisa School will be in a similar space as Varsity, another education portal run by Zerodha, the largest stockbroker in the country. Varsity today exists as a separate application and contains videos and written content on stock trading.
While brokers are launching their products, the platform play is also becoming critical in attracting new investors to the digital trading and investment ecosystem.
Flipkart-promoted PhonePe, too, is doubling down on such partnerships with insurance houses and mutual funds to emerge as the financial services platform of choice for millennial Indians.
In a statement on August 17, Hemant Gala, vice president, financial services and payments at PhonePe, said within a short time, PhonePe had seen mutual fund investments from across 15,000 pin codes of the country and was growing its insurance distribution business rapidly as well.
Moneycontrol wrote on August 5 how Paytm is upping its game in the financial services. What started with payments has expanded to basic banking, insurance, mutual funds and others.