Editor ’ s Letter
Winds of Change ...
Tech Nation
Tech-savvy investors are now researching and engaging with product manufacturers directly
Malini Bhupta malini @ outlookindia . com
In my maiden issue I had said that Outlook Money would closely track disruptions in the financial services industry and their impact on investors . Our current issue focuses on one such shift . With the proliferation of mobile broadband , Indian investors are increasingly shopping for financial services just as they are buying other products — digitally . While technology is a driving force , the other major factor contributing to this change is distrust in intermediaries . Tech-savvy investors are now researching and engaging with product manufacturers directly because not only is it more convenient but it is also cost-effective . For instance , all mutual fund schemes have a direct plan . This was mandated by the market regulator in 2012 , but investors have started showing a preference for these schemes in the last two years . The consumer is driving this shift today and product manufacturers are responding to this by building a direct sales force . On the face of it , insurers and mutual fund bosses claim that all forms of distribution channels — distributors , brokers , online platforms and direct investment platforms — will exist , but it is apparent that consumers want to cut out the middlemen . Also , many investors believe that investing through online apps and platforms is cheaper , but the fact is that not all these platforms hawk direct plans .
Our cover story delves deep into this trend and busts some classic myths , while highlighting the pitfalls of going direct . Many consumers believe that going direct is the most cost-effective way to invest , but if one boards the wrong bus , the chances of reaching the right destination are slim . While
It has become apparent that Indian investors want to cut out middlemen
investing directly is more complex given that there are 8,000-plus mutual fund schemes to choose from , buying insurance online is relatively easier . And insurers have seen a substantial jump in traffic to their websites over the last one year . But in both cases , the caveat is : “ Buyer Beware .”
This is all the more relevant during the first three months of the calendar year , as they herald the onset of the annual taxsaving season , which sees salaried taxpayers scurrying to make tax-related investments before the March 31 deadline . Our coverage on tax planning will help you reduce stress , maximise tax benefits on offer and avoid mistakes .
We are also introducing a new section called ‘ Life Planning ’ because financial planning needs to be closely linked to life goals , which may vary for people of different age groups . We believe that financial planning has to be done in a holistic way . In this issue , we have focused on Millennials and how they can plan their life if they have graduated with a large education loan . The section will employ different tools like poems to convey the message in a differentiated way .
Last , but not the least , the Finance Minister seems to have disappointed the middle-income segment this time , as he clearly has not made them richer . Our Budget Special seeks to decode all the measures announced by the FM and how it will impact their income and investments . Happy Reading !
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Outlook Money February 2018 www . outlookmoney . com