ET Money, one of India’s largest wealth tech startups, announced that it has crossed Rs.30,000 Crores or approximately $4bn in retail mutual fund investments that are managed on its platform. Out of the Rs.30,000 Crores, Rs.11,000 Crores ($1.4Bn) is the current value of the investments (AUM) done on the platform itself, while the remaining Rs.19,000Cr ($2.7Bn) are the investments imported by users via ET Money’s Portfolio Upload facility.
Between July 2021 to July 2022, while the stock market has been extremely volatile, ET Money’s AUM has grown by 48%. This growth significantly outpaces the mutual fund industry’s AUM growth of just 6.9% during the same period. The average SIP on ET Money has also grown by 8%, while the same for the industry has fallen by 6%. ET Money has also seen a growth in its monthly SIP book to Rs.275 Crores The platform now processes more than 12 lakh transactions every month. ET Money says that its consistent efforts to make investing easy in an unbiased manner and help Indians make intelligent investing decisions are the reasons for this continued growth.
In the last 18 months, ET Money has been making strides in educating Indians to invest smartly for the long term. One such medium of education is their Youtube channels, which have over 4.3 Lakh subscribers. Indians watch ET Money’s YouTube channels for more than 60,000 hours every month, one of the highest in space. Such initiatives have been complemented by a slew of powerful tools that ET Money provides to its users, like Mutual Fund Report Card, Super-fast Portfolio Import, Mutual Fund Portfolio Health Check, Investor Personality, and more. These initiatives have resulted in the company retaining 96% of its investors annually, with 60% of them investing every month.
The company recently launched ET Money Genius, a unique paid membership service that provides personalized asset allocation-based investment strategies across Stocks and Mutual Funds. By applying the principles of a diversified portfolio and regular profit booking and loss minimization via intelligent monthly rebalancing, these strategies have proven to fall less during market downturns and earn higher returns than respective benchmarks during upswings.
With the recent volatility in the stock market, retail investors in the country now realize that chasing multi-bagger tips or crypto won’t help them earn long-term returns. There is a strong emerging need for data-led, unbiased & zero-commission-based advice. ET Money Genius is aimed at serving this need at a fraction of the cost using a tech-first approach.
Online platforms have enabled a large number of users to avail direct mutual fund plans and helped grow Direct Plan Mutual fund’s share significantly to about 25% of the incremental investments in the mutual fund industry. Given the importance of direct mutual funds, SEBI recently floated a consultation paper asking for an industry view on a proposed framework for Execution Only Platforms(EOP), which will help expand access to direct plans in a more structured and sustainable manner.
Speaking on the announcement, Mukesh Kalra, Founder and CEO of ET Money, said, “$4Bn is a strong vote of confidence by users on our approach to unbiased, commission-free investing. More importantly, it indicates our user’s stronger trust in ET Money. India is in the very early stages of financialization of savings and we clearly see headroom to grow to $20Bn sooner than we imagined. We are also excited with the possible regulatory tailwinds which will make our business even stronger and more sustainable.”
