56% of people in 10 of the world's fastest-growing economies have retirement goals around twice the size of their likely pension pots at age 60.

- Wealth Expectancy Report 2019

According to The Standard Chartered report [1], India's affluent do not seem to be far behind in maintaining this large wealth expectancy gap. Statistics show that 32% may achieve more than half of their aspired wealth, while 68% may barely touch the 50% mark of their aspiration.

Financial Planning

Despite being technologically savvy, with the best digital wealth management solutions, India's wealth creators still invest 42% of their wealth in a savings account to accrue their money. If you look into the inflation and low-interest rates over a period of time, you will find that these simple saving instruments do not deliver the best results. A significant hindrance lies in the ignorance of a considerable part of India's population, where they are withheld from the best mutual funds app for android.

What is more interesting to know is that 73% of the emerging affluent are open to migrating from traditional financial instruments to the latest products, but only if the source of financial knowledge comes from an expert or reputable source. Affluent Indian's prefer to remain in control of their wealth by managing money digitally; they even look to FinTech websites for financial advice and intelligence.

Mutual funds

I believe there is a gap here between knowledge of investment avenues and the legwork to invest. While online investment advisors can fill this gap, there are limitations to the extent of their service primarily to the affluent or HNI investors. Traditional IFA's would be perfect, but do they have the capacity to match the acumen that algorithms can provide? Given India's established need for high-touch support and advice, this is where I'm sure IFA's 2.0 fit in perfectly; a combination of human touch and personalization balanced with the intelligence of a robust system that assists IFA's to serve their clients better comprehensively and precisely. What do you think?

[1] https://www.cnbc.com/2019/12/17/standard-chartered-majority-of-savers-set-to-miss-retirement-goals.html

By Rajan Pathak, Co-Founder & MD, Fintso

Rajan is known for his in-depth insight into the financial entrepreneur’s venture with 25+ years of establishing various B2B businesses, which gives him the edge and adeptness to scale the advisory business.

As the CEO of IFAN Finserv (formerly ING), Rajan managed a team of 40+ people, created a wide network serving 1300+ Independent Financial Advisors managing assets over $500 million.

Find out more on our website or Rajan's LinkedIn