“There are 5 crore people who file income tax returns. Now even if there are another 10 crore Indians who potentially can invest, still the number is 15 crore. If there are already 10 crore investors, it is very hard to grow at the speed at which we grew in the last two or three years”, says Nithin Kamath, Founder & CEO, Zerodha
The number of investors in the market is 10 crore. Last 2-3 years the number of investors has increased at a break-neck speed. Do you expect this to continue going on?
I think we are kind of plateauing in terms of the opportunity out there because India’s target audience, the people who can invest in the markets are the people who have money with them and in India people who file income tax returns number five crore. Now even if you assume there are another 10 crore Indians who potentially can invest, still the number is 15 crores. So if you are already at 10 crore investors, I think it is very hard to grow at the speed at which we grew in the last two or three years. It is going to be very hard.
You have been known for your innovation and offering to customers What kind of new offerings or new innovation will we see going ahead?
Over the last two, three years, a lot of people have come to the market but I do not know if all of them know what they are doing with the money. A big opportunity is there to advise people on how to invest better and save better. I think for the next two three years, the opportunity is really the fact that there are three, four crore new Indians who have come to the markets and they need help in managing their money better. So the opportunities around advisory will open up in the next two, three years.
You will also become a part of that because you have just said that you are offering a plain vanilla solution, no other thing is there. So you will get into that or will the solution be plain vanilla only?
It is not really plain vanilla and we do not advise today. The reason we do not advise is because it is very hard to advise. If you came to me and asked what I should invest in, it would be hard for me to say that because I can tell what is right for you only if I know your overall financial context. With the new
Sahmati account aggregator framework, you will soon be able to use technology to advise better.
The number of investors in the market is 10 crore. Last 2-3 years the number of investors has increased at a break-neck speed. Do you expect this to continue going on?
I think we are kind of plateauing in terms of the opportunity out there because India’s target audience, the people who can invest in the markets are the people who have money with them and in India people who file income tax returns number five crore. Now even if you assume there are another 10 crore Indians who potentially can invest, still the number is 15 crores. So if you are already at 10 crore investors, I think it is very hard to grow at the speed at which we grew in the last two or three years. It is going to be very hard.
You have been known for your innovation and offering to customers What kind of new offerings or new innovation will we see going ahead?
Over the last two, three years, a lot of people have come to the market but I do not know if all of them know what they are doing with the money. A big opportunity is there to advise people on how to invest better and save better. I think for the next two three years, the opportunity is really the fact that there are three, four crore new Indians who have come to the markets and they need help in managing their money better. So the opportunities around advisory will open up in the next two, three years.
You will also become a part of that because you have just said that you are offering a plain vanilla solution, no other thing is there. So you will get into that or will the solution be plain vanilla only?
It is not really plain vanilla and we do not advise today. The reason we do not advise is because it is very hard to advise. If you came to me and asked what I should invest in, it would be hard for me to say that because I can tell what is right for you only if I know your overall financial context. With the new
Sahmati account aggregator framework, you will soon be able to use technology to advise better.
So for example, if you came to me and said you wanted to advise me, I will click on this button, you click on this button, I take all your financial data and then I will be able to build a good portfolio or good advisory because the account aggregator framework is there. I think advisory will become easier and can be technology first kind of a business. Hence the opportunity exists.
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