Share on whatsapp
Share via Whatsapp
Share on twitter
Tweet it out
Share on facebook
Share on FB
Share on linkedin
Post on LinkedIn
  • The financial services marketplace is getting reshaped by three forces – a push to financialization, increasingly complex products, and digitization leading to the emergence of self-serve customers
  • Consequently, there is a need for providing cost-effective research and guidance to a new class of consumers
  • PrimeInvestor with its totally independent setup and a remarkable team, seeks to do that as a subscription-based, product-first, digital-channel service.
  • It’s a unique service – so, we need a lot of feedback, and a lot of support 🙂

When we launched the alpha version of our service a few days ago, there were a lot of people who came to us with a simple question – “What is PrimeInvestor?” 

What is this service? What do we plan to offer? How is it different from what this team was doing previously? How can we use it? 

So, I thought I would write a brief essay on this topic. However, when I thought about it, I decided the best way to answer this question is by answering a different question:

Why PrimeInvestor?

Why did we create this service? What motivated us? Why do we think this service is needed in the market? In short, why should PrimeInvestor exist?

What we see

The team that is behind PrimeInvestor has several decades of experience in the personal finance marketplace in India. We have looked at the spectrum of products, worked with people and companies in the industry as well as the government, and interacted with thousands of investors over a course of more than 2 decades. Collectively, we see three patterns emerging in the market:

  1. Increasing financialization of investments
  2. Increasing variety and complexity of financial products that are available, and 
  3. Increasing trend towards do-it-yourself (DIY) style of management of one’s finances

The trend of increasing product variety and complexity seeks to tap the opportunities available due to this financialization. Private entities, as well as the government, are creating newer, different products that require analysis, scrutiny, and understanding.

People who have been observing the personal finance marketplace will see little reason to argue with any of these points. There is data (from RBI) that substantiates the first point – that people are moving from traditional asset classes such as real estate and gold towards financial assets such as deposits, mutual funds, stocks, and, to an extent, insurance-based products.

The trend of increasing product variety and complexity seeks to tap the opportunities available due to this financialization. Private entities, as well as the government, are creating newer, different products that require analysis, scrutiny, and understanding.

And, finally, more investors are taking to a do-it-yourself mode of investing. This is enabled by two factors – one, the increased availability of digital platforms and services are emboldening investors to go ahead with trying their hand at managing their own finances. And two, regulators such as SEBI and IRDA are incentivizing self-management by making it more cost-effective (direct plans in mutual funds, online plans in insurance are two examples). 

And the problem is?

Separately, each of these could be seen to be a good thing. However, put together, you have a situation where,

More and more people are investing in a higher variety of complex financial products with little or no help.

 

That is a recipe for trouble. Here are the dangers of this situation:

  1. People move into DIY investing for the cost benefit, and get stuck in bad products because they find it hard to separate good products from bad.
  2. They are prone to behavioural biases – getting nervous in down markets, not knowing when to act and when not to – resulting in either over-management or getting exasperated with their investments.
  3. They take ad-hoc advice from a variety of sources – media, friends, family, blogs – in an arbitrary manner and get lost in the process.
What to choose? 

4. They do not have the time, energy, or knowledge to continue to keep up with the markets and emerging product trends, and either lose out on opportunities, or worse, let their investments get stale.

5. They miss investment opportunities or good products because they get overwhelmed with the choices in front of them.

Beyond this, there are also people who have taken guidance from relationship managers and financial sales people – investors who, even if they are not DIY folks, are in trouble and need a way out of the mess they may have got into.

So, what’s the solution?

Simply put, for financial consumers to have access to a service that is 

  1. Structurally and organically independent and unbiased
  2. Powered by people who are experts and have lots of experience with both financial and real-world products and services and understand customers, and 
  3. One that is easily and reliably available in a cost-effective way.

And, that is PrimeInvestor!

We have no allegiance but to our customers – we will not take commissions or ad revenue or any such source of income from any financial product manufacturer. We will not sell, rent, or lease our customer base to any external entities for marketing or any other purpose. Our only source of revenue will be the (low) subscription fee we intend to charge from our subscribers.

We will provide products and solutions and opinions (more on these below) created by some of the most trusted experts in the financial world in India (check out our ‘Team’ page) – people with decades of experience looking into products, analysing markets, evaluating the economy, and most importantly, engaging with and interacting with thousands of customers about their financial needs and aspirations. 

And finally, we will make it available through an easy-to-use, convenient platform that can disseminate our efforts far and wide in a scalable manner – ensuring both that our service is available to all, and making a good business case for us 🙂

We believe that with this structure, team, and channel in place, we can truly make an impact in the way people go about their investments and personal finance – they would no longer have to choose between low cost and good guidance.

What we are not

While we think that we can make a significant difference to how people invest and manage their finances, we are also clear about one thing – we DO NOT need to be all things to all people. Here are a few things that we are not:

  1. We are not a transaction platform – there are several transaction platforms in the country right now – be it for investments or trading or insurance – and we don’t want to be another one. You can go with any platform of your choice and easily implement our investment ideas. Transactions have become commoditized, knowledge is not – and that is what our specialization is.
  2. We are not a content service – Most definitely not – we are not in competition with media houses – online or traditional. We are a products-and-solutions-first service that seeks to provide you with ideas for profitable investments and judicious management of your finances, while taking full onus for whatever we recommend.
  3. We are not a personal advisory service – we are a research platform that will tell you what is good and what is bad, and give you easily implementable packages and solutions (more on this below) – but personal advice is not a scalable proposition for us. That does not mean you can’t ask us questions about products – we will have both automated and individual services that provide answers to such questions backed by our research. 
  4. We are not a free service – Good, unbiased, profitable research service does not come free 🙂

Essentially, everything that you need to be a confident investor, everything you need to know that you are on the right track with your personal finances, and everything you need to be sure that you are not choosing bad products.

So, finally, What IS PrimeInvestor?

PrimeInvestor is a research platform that will 

  1. Provide personal finance solutions – in the form of carefully packaged portfolios of products. 
    • One, these solutions will cover a variety of products, all easily accessible to regular investors, across deposits, insurance, mutual funds, stocks, ETFS, bonds, savings plans and more. 
    • Two, they will be tailor made for different life stages, situations, and needs. There will be special packages for different kinds of investors and unique situations. For example, you don’t need to have the usual aspirations of children’s education or wedding. You might want to save up to be an entrepreneur or simply build money to travel the world! Whatever it is, your needs will not be ignored. 
    • And, most importantly, they will not be one-time packages – they will be continuously maintained and updated with evolving market situations and products landscape. So, when you subscribe to a solution, you will always be able to stay up to date!
  2. Provide curated lists of products across the personal finance universe – what are the best mutual funds? We’ll tell you. What are the best deposit products? Answered. What is a good term insurance plan out there? You got it. How do I find out if my health plan is good, or is there a better one? You will be able to find out. In short, a one-stop place to find out what’s the best set of products out there that you can use for yourself.
  3. Provide ratings and opinions on a wide universe of products – You already have a portfolio, and want to know how it stacks up? You can readily see our product ratings to find out – these ratings will be uniquely developed and presented to make immediate and intuitive sense, and be an invaluable tool to review or rate your own portfolios or product choices.
  4. Provide market strategies and insights – The market keeps changing and evolving and moving in different directions. What is the best course of action for you? What should you do now? What is the impact on your portfolio? We’ll tell you so you can always know that you are on the right path, when to act and when not to.
  5. All this backed by solid, well-researched content and opinion – We will engage with you continuously to keep you abreast about all that’s happening.

And much more, in due course – easy to use and real-life useful calculators, ways to upload your statements and get a quick review of your holdings, ability to track and follow updates on products and get alerts, and more.

Essentially, everything that you need to be a confident investor, everything you need to know that you are on the right track with your personal finances, and everything you need to be sure that you are not choosing bad products.

All this for a low annual subscription fee that will ensure that you can take the low-cost route for the product and still be fully equipped with all the research and strategies you need.

In summary…

The Indian financial services industry has evolved tremendously in the last 10 years. A full suite of innovations, mostly enabled by technology, have taken the marketplace by storm. UPI has revolutionized payment systems, direct plans have shaken up the MF industry, discount brokerages have upended stock trading, NPS is making inroads in retirement planning, and many more.

This new and evolving scenario is making life easier in terms of execution and gives more choices in terms of variety of products available. However it has also made an investor’s life more complex, and prone to bad or risky decisions. PrimeInvestor seeks to solve that problem by providing independent, high-quality, totally unbiased research and recommendations, and making them available to all using a subscription model. A model where our only loyalty will be to you, our customers and subscribers.

It’s a unique proposition – one we believe is needed in the marketplace today and one we believe we are uniquely positioned to offer. 

We hope we’ll succeed in our endeavour. We hope we will be a force of good in the market and make a positive impact. 

But most of all, we hope we will help you make the right financial decisions and become confident investors.

Share on whatsapp
Share via Whatsapp
Share on twitter
Tweet it out
Share on facebook
Share on FB
Share on linkedin
Post on LinkedIn

Please note that any specific queries on any of our recommendations will be answered ONLY through email. If you are a subscriber, please mail contact@primeinvestor.in.  Only general queries or discussions will be answered through the comment section of the blog. For full details, please refer to this post – How to communicate with PrimeInvestor.

24 thoughts on “Why PrimeInvestor”

  1. Hi Srikanth,

    Congratulations to you and the team. I have gone through by articles and posted my comments also regarding my queries or feedback. Your initiative looks promising. regarding the portfolio service i have a question that will there be analysis provided for the funds etc which will be part of prime funds as i read in one of the articles that “we don’t take just the 5-star funds in each category to decide the Prime Funds list”. For example suppose one four star or three star fund is part of portfolio will we know the reason why that fund was chosen.

    1. Srikanth Meenakshi

      Hi Prakash,

      Thanks! 🙂

      Regarding your question, the overall answer is yes. We will be providing specific reviews of funds we have in our list of Prime funds and in our portfolios. In that, there will be ample logic and justification for its inclusion. And, of course, in the interim, if a subscriber has a question on why a fund is included, they can always send us a mail to contact@primeinvestor.in and we’ll be glad to reply.

      And on a quarterly basis, when we review the whole list, we will let you know why some funds went out, others made it in etc.

      thanks,

      Srikanth

  2. Dear Srikanth

    Many congratulations and best wishes for the new initiative to you and the team.

    I just did the registration and read few of the blogs written by the team in the last couple of months.

    I’m sure more clarity will emerge for us all once the actual paid service is launched on how this is different from sites like Value Research Online on one side of the spectrum and Fundsindia on the other side of the spectrum.

    Till then looking forward to get teased by these interesting blogs.

    Regards
    Raspreet

    1. primeinvestor_psswwp

      Thanks! Not too much more time of teasing! We are launching on the 15th. Please note that we are not a ‘Research platform’ (like VRO or morningstar), but a research-as-a-service platform, meaning we will do the research and give you actionable outputs for you to invest/implement. That is, we will do the research for you and enable you to enjoy the fruits of the labour! 🙂 So, yeah, different from much of what’s out there…

  3. Please give us your comments on the value versus growth debate. Value funds have been a big letdown since Jan 2018. There is no firm opinion on this. Popular value funds have bit the dust in this period and the matter required urgent consideration .

    1. Hi Ram – this response is from my colleague Aarati Krishnan – You are right. Value funds have underperformed because the value style of investing has been lagging the growth style not only in India, but globally. However, a rolling return analysis of the MSCI Value and Growth indices shows that value investing goes increase an investor’s chances at earning a 20% plus return over the long run. However, in the markets, cycles that favour growth or value usually tend to be quite long- lasting each running for 8-10 years. If you look back at the past, the 1993-2000 period was a growth cycle, the 2001-2008 period was a value cycle, and the last 10 years have again seen a growth cycle. Given this history and the fact that valuations for some quality stocks are quite expensive, we do expect value to come back within the next 5 years years. Exactly when the cycle will turn is difficult to say. We therefore feel investors should have blend of value and growth style funds in their portfolio and if they hold them, they should not discard good value funds because their recent returns are sub-par.
      Regards
      Aarati

  4. Hi,
    I’m a FundsIndia investor. They provide MF recommendations. I don’t know how often or how thoroughly the fund recommendations are reviewed.
    If my interest is primarily MFs, what will you provide, with regard to mutual fund recommendations, that FundsIndia does not currently provide?

    I understand that you may do portfolio review, etc. However, this part is ancillary. My primary question (to which I’d like a clear answer), is about MF recommendations from you, and how this would differ from FundsIndia recommendations. Thanks.

    Thanks,
    K

    1. Hello ‘K’,

      Thank you for writing to us. Once our services go live, all the details of what exactly we offer will be made available. You may please subscribe to the free blog to receive updates and also receive details when we go live.
      Thanks,
      Vidya

  5. SESHADRI IYENGAR

    Hi

    I like this concept. Your note on why Primeinvestor was well researched and articulated on so many points of relevance . Time will only indicate everything. The intentions are honest and credible. I am stating this based ,on the composition of the team who are /were with Hindu Business line Funds India .Some of them are real stars in the financial journalism space.

    People can copy content ,not creativity.

    I would like to know more about the subscription details.

    Regards
    Seshadri Iyengar

Leave a Comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Register for FREE!

Gain instant access to more PrimeInvestor articles, researched products, and portfolios

The essence of PrimeInvestor

Register for FREE!

Gain instant access to more PrimeInvestor articles, researched products, and portfolios

Legal Disclaimer : Redwood Research (with brand name PrimeInvestor) is an independent research entity offering research services on personal finance products to customers. We are a SEBI registered Research Analyst (Registration: INH200007478). The content and reports generated by the entity does not constitute or is not intended to constitute an offer to buy or sell, or a solicitation to an offer to buy or sell financial products, units or securities. All content and information is provided on an ‘As Is’ basis by PrimeInvestor. Information herein is believed to be reliable but PrimeInvestor does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. The services rendered by PrimeInvestor are on a best effort basis. PrimeInvestor does not assure or guarantee the user any minimum or fixed returns. PrimeInvestor or any of its officers, directors, partners, employees, agents, subsidiaries, affiliates or business associates will not liable for any losses, cost of damage incurred consequent upon relying on investment information, research opinions or advice or any other material/information whatsoever on the web site, reports, mails or notifications issued by PrimeInvestor or any other agency appointed/authorised by PrimeInvestor. Use of the above-said information is at the user’s own risk. The user must make his own investment decisions based on his specific investment objective and financial position and using such independent advisors as he believes necessary. All intellectual property rights emerging from this website, blog, and investment solutions are and shall remain with PrimeInvestor. All material made available is meant for the user’s personal use and such user shall not resell, copy, or redistribute the newsletter or any part of it, or use it for any commercial purpose. PrimeInvestor, or any of its officers, directors, employees, or subsidiaries have not received any compensation/ benefits whether monetary or in kind, from the AMC, company, government, bank or any other product manufacturer or third party, whose products are the subject of its research or investment information. The performance data quoted represents past performance and does not guarantee future results. Investing in financial products involves risk. Mutual Fund Investments are subject to market risk, read all scheme related documents carefully. As a condition to accessing PrimeInvestor’s content and website, you agree to our Terms and Conditions of Use, available here. This service is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Redwood Research or its affiliates to any registration or licensing requirement.

• Aditya Birla Mutual Fund • Axis Mutual Fund • Baroda Mutual Fund • BNP Paribas Mutual Fund • BOI AXA Mutual Funds • Canara Robeco Mutual Fund • DSP Mutual Fund • Edelweiss Mutual Fund • Essel Mutual Fund • Franklin Templeton Mutual Fund • HDFC Mutual Fund • HSBC Mutual Fund • ICICI Mutual Fund • IDBI Mutual Fund • IDFC Mutual Fund • IIFL Mutual Fund • Indiabulls Mutual Fund • Invesco Mutual Fund • ITI Mutual Fund • Kotak Mahindra Mutual Fund • L&T Mutual Fund • LIC Mutual Fund • Mahindra Mutual Fund • Mirae Asset Mutual Fund • Motilal Oswal Mutual Fund • Nippon India Mutual Fund • PGIM Mutual Fund • PPFAS Mutual Fund • Principal Mutual Fund • Quant Mutual Fund • Quantum Mutual Fund • Sahara Mutual Fund • SBI Mutual Fund • Shriram Mutual Fund • Sundaram Mutual Fund • Tata Mutual Funds • Taurus Mutual Funds • Union Mutual Funds • UTI Mutual Funds • Yes Mutual Funds

Equity: Large Cap Funds | Mip Cap Funds | Large And Mid Cap Funds | Small Cap Mutual Funds | Contra Mutual Funds | Dividend Yield | Focused Mutual Funds | Find Top Index Funds | Best Sector Funds | Thematic Mutual Fund | Best Value Mutual Funds | Equity Linked Savings Scheme | Tax Saving Funds
Debt: Banking And PSU Funds | Corporate Bond Funds | Credit Risk Funds Mutual Funds | Dynamic Bond Funds | Floating Rate Funds | Gilt Mutual Funds India | Find Top Liquid Funds In India | Long term debt funds | Low Duration Funds Debt Funds | Medium Duration Debt Funds | Medium To Long Duration Funds | Money Market Debt Funds | Overnight Debt Funds | Short Duration Debt Funds | Ultra Short Term Debt Fund
Hybrid: Aggressive Hybrid Funds | Arbitrage Mutual Funds | Balanced Advantage Mutual Funds | Conservative Hybrid Funds | Dynamic Asset Allocation | Equity Saving Funds | Multi Asset Funds | Multi Asset Allocation

Scroll to Top
Login to your account