How people of Tier 2, Tier 3 cities can invest in stocks, mutual funds

Indian economy is advancing towards becoming a $5 trillion economy and the structure is going to demand a balanced regional growth in the country. The Indian stock market is walking on the same passage without any deviation to the economy, as a stalwart rally right from the low of 10,000 levels to a high of multi-year highs of 12,000 is not the same story delivered every year. While we are employing financial tools to deduce the valuations of the most prominent companies of India in which we are tagging utmost importance to rural consumption but no importance has been given on approaching their untapped potential of investing in Indian stocks and mutual funds as they possess a major share of the total population of India.

History suggests that ‘the contribution of Indian economy to monthly SIPs has witnessed a growth rate of 13.31 per cent, which is clearing displaying the positive approach of market participants towards Indian stock market, so a country like India that carries the potential of generating decent returns to the investors that carries the sight of global market investors that are coming forward with lots of asset classes to provide diversity for the retail and high net-worth participants is still lacking behind to capture the inclusion of Tier-3 investors, which are still banking upon old schools investment avenues such as Fixed Deposits and other Bank Deposits.

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As swift as we are entering into an India, where technology and artificial intelligence is capturing the day-to-day activities of the people and coming out with some cracks that are easing these opportunities. The rising popularity of fin-tech startups in India with the propaganda of easing the conduct of investing in the stock market is going to capture the untapped potential of the Indian economy.

Kaushlendra Singh Sengar, Founder at Invest19.com says, "The country is demanding a multi-lingual platform so that a farmer or a rickshaw-puller could understand as the familiar languages possess the power of catching the sight of people. The platform should be human-centric and designed in such a way that it will be easy to understand by the tier-3 cities people. A country like India, which has 90 million mobile users and everyone, has learned using the social networking apps led by its effortless design, availability of the multi-lingual facility and uncomplicated procedure. So, an aggregator platform that will be backed by various algorithms and machine learning that will work on providing the required information with the effortless process is going to attract investments from people that not only to help in raising investment multiplier but will also generate more returns for tier-3 people."

Sengar went on to add that the efforts provided by fin-tech platforms to bring tier-3 investors into the stock market is matching the desired results but their limited availability of capital to execute their operations is restricting their potential. While, more efficiency would be achieved into the process of tier-3 investor’s inclusion if SEBI will take measures to provide stimulus to these fin-tech platforms from ‘Investors Protection Fund’, which will help these platforms to run their functions smoothly.

"The fin-tech startups are coming up with platforms that directly providing the asset class to the investors after filtering the associated risk exposure, future potential of that particular class and other necessary information that could help the investors to make the right judgment. Moreover, the display, presentation and operative structure of these platforms are shaped in such a way that a layman could invest, keeping in mind the safety of their funds by proper execution of KYC of every investor," concluded Sengar.