Mumbai, August 2, 2017: Fincash.com the Fintech startup that was recently in the news for its round of seed funding has a unique focus towards the money market space. Personal finance has been gaining focus over the years globally, with a number of ideas coming into the field. The money market space is an investment option used by companies and even individual investors for investing for very short periods ranging from as short as 1 day to a week or even a month. Instead of letting money lie idle in the bank account, investors invest this money and get a yield at times, which is twice the earning in a bank account. The money can also be redeemed within a day (in most cases!). This ensures that your money earns while lying idle.
“Today, liquid funds or even ultra-short term funds are great alternatives for fixed deposits or even parking idle money lying in the bank account”, says Gaurav Perti – CEO, Fincash.com. The Indian markets have seen a rise in Mutual Fund assets with the AUM of the industry being at all-time high of INR 20 lakh crores (June 2017). The last couple of months have seen a surge in the equity markets and too flows into Mutual Funds. According to AMFI (Association of Mutual Funds in India), the industry assets have doubled in the last 3 years. Out of the total industry assets, 20% assets are towards the money market space, however, more than 90% of these assets belong to non-individuals or companies. This is something which fincash.com with its easy solutions seeks to change for the retail investors. Gaurav says, “SavingsPlus offers instant redemption, a facility that was not available earlier. With it an investor can stand in line at an ATM and ensure by the time he reaches the ATM the money is in the account, withdrawal is as easy as a click of a button!”. With time fincash.com seeks to expand its offering in this space by offering various plans for retail investors. It focuses on the short term and seeks to give investors the options to make some returns on the money in the short run. We offer a number of other products for investors with a long-term horizon too.
There have been a number of personal finance startups that have come into India in the last few years. While most seem to be targeting the retail investors, time will tell if the money market space interests these types of investors.
Global wealth management start-ups such has wealthfront & betterment based in the U.S. have been around for quite some time with a focus on financial planning and a host of advisory services. While penetration levels in the U.S. are over 50%, in India the penetration levels are less than 5% for Mutual Funds. It will be interesting to see how the personal finance space & Fintech overall evolves over time and which player is able to make a mark.
Fincash.com
Fincash.com was founded in 2016 by two individuals from IIT Bombay having over in 12 years of experience each. The founders have extensive experience in the domain of financial services & technology. Nearly a year old, Fincash.com is a funded startup in the Financial Technologies space (or FinTech). The startup aims to create an innovative online wealth management platform that is dynamic & differentiated in the marketplace.