Connect with us

Investment

Do online communities add value to your investment decisions? | Mint – Mint

Published

 on


If you want proper investment ideas, speak to a financial advisor. This sage advice, however, leaves many questions unanswered. How do you find good advisors? Will they have all the answers that you need? Can you afford an advisor?

 Investors have often turned to online communities to find answers to these and other questions. In this piece, we look at whether some of these established and emerging online communities add value to your investing decisions.

“Dedicated investment communities are the next stage of evolution in social media around investing. Social media such as Twitter, Facebook or Instagram are generic – used to discuss all kinds of subjects without flows specifically designed for investing,” said Mihir Patki, co-founder of Multipie, one of the new online communities. “The second problem is that of fake profiles, screenshots and random gyan  (wisdom) without context. Multipie is solving for this by keeping portfolios authentic through integrations with broker partners,” he added. Essentially, the users’ holdings will be sourced from their brokers with their consent rather than a self-declaration. 

“Privacy of all users is maintained—absolute numbers are not shown by us, only asset allocation and top holdings are shown, just like you would discuss your portfolio with friends in real life”, said Patki. “Launched in October, 2021, our user base of more than 100,000 is purely organic. The quality of engagement on Multipie and the average portfolio size of 50 lakh are far better metrics than mere numbers of millions of inorganically acquired users who cant contribute to the community. We are not chasing user growth for the sake of it,” Patki added.

Then there is Valuepickr, a stocks-related discussion forum that was launched in 2010. The forum has threads on stocks running back for years, allowing readers to see how the discourse around a stock has evolved. Since the platform is free, it avoids bells and whistles that profit-oriented businesses use to keep users engaged. Its focus is on fundamental analysis of stocks, generally in the small cap space that the large institutions have not discovered. It also has a community that actively moderates content. “Any day trading targets or short term behaviour is discouraged by the community,” said Donald Francis, its co founder. “ In addition, Valuepickr has a section in which only ‘collaborators’ can post. This is a group of around 30 people who have been vetted by the platform founders. Based on the quality and frequency of posts, we admit 3-4 new collaborators each year and roughly the same number are removed,” he added. 

Finance has traditionally been dominated by men, but there are women-only communities as well. Priti Rathi Gupta set up LXME, one such community in 2019 as a Facebook group. “It was a closed group and our idea was to develop a safe space where women could talk about investments. Women didn’t know where to have money conversations. Nobody was talking about it at home or among friends, and advisors are generally men and so there was a disconnect. The group has now grown to 30,000 women and 60% of them engage with it on a daily basis,” she said. 

LXME also has an app with around 40,000 users, according to Rathi Gupta. The platform focuses on financial education and then allows women to invest through it (LXME is a mutual fund distributor, an entity separate from Anand Rathi which is itself a large mutual fund distribution firm).

 According to Rathi Gupta, the community element is important, particularly for women, especially those who are not high net worth individuals. For such women, advice is not readily available. “If we find people posting things that are not appropriate, for instance promoting some unknown cryptocurrency, then we do comment on it putting forth our view. That’s how we moderate the platform, but we don’t delete any posts. Many women advisors are part of the LXME. We don’t, however, permit direct solicitation of clients,” said Rathi Gupta. 

Even as investment-themed communities have risen, it is important to ask how each such group makes its money. Multipie, for instance, offers products like NCDs and corporate FDs to users and earns commissions from them. It will soon start charging brokers for integrating the platform into their websites. LXME is currently free, but users who invest through its app have to pay commissions (it is a mutual fund distributor). Valuepickr is free and that accounts for its bare bones interface, but you must be wary about community members who are posting merely to solicit clients. 

In the past, online investing forums have come into the limelight for the wrong reasons. Examples abound about scamsters using them for pump- and-dump schemes. The surge in meme stocks such as Gamestop and AMC in the US triggered by discussions on Reddit underlines this. However, the right kind of forum, used in the right way can provide you with good information. These should at best supplement your own research, if you are a do-it-yourself investor or supplement the advice given by a qualified professional .

Subscribe to Mint Newsletters

* Enter a valid email

* Thank you for subscribing to our newsletter.

Adblock test (Why?)



Source link

Continue Reading

Investment

China proposes rules to regulate private pension investment via mutual funds – Reuters.com

Published

 on


A Chinese national flag flutters near the building of China Securities Regulatory Commission (CSRC) at the Financial Street area in Beijing, China July 16, 2020. REUTERS/Tingshu Wang/Files

SHANGHAI, June 25 (Reuters) – China’s securities regulator proposed rules to regulate private pension investment via mutual funds, setting the criteria for qualified products and sales agents under a scheme that will channel fresh savings into the country’s capital markets.

The draft rules, published by the China Securities Regulatory Commission (CSRC) late on Friday, came after Beijing in April launched a milestone private pension scheme to tackle challenges of aging population. read more

Under the scheme, eligible Chinese citizens can buy mutual funds, savings deposits and insurance products via their own individual pension accounts, potentially boosting a pension market that has lured foreign asset managers including Fidelity International and BlackRock.

The proposed rules “have set a relatively high bar for products and institutions, and are designed to ensure safety of pension fund investment and protect investors’ interest,” the CSRC said in a statement on its website.

Initially, pension target funds with at least 50 million yuan ($7.48 million) of assets over the past four quarters are eligible under the pilot pension scheme, the CSRC said.

Other types of retail funds with clear investment strategies and good long-term track records will be gradually added to the eligibility list as the scheme expands, the CSRC said.

Currently, there are 91 pension target funds that meet the CSRC’s criteria, according to TF Securities.

In addition, fund managers and sales agents participating in private pension business must set up internal control systems, adopt long-term incentives, and ensure independent operation of the pension assets, according to the rules.

Independent consultancies estimate China’s private pension market will grow to at least $1.7 trillion by 2025, from $300 billion currently.

In 20 years, 28% of China’s population will be more than 60 years old, up from 10% today, making it one of the most rapidly-aging populations in the world, according to the World Health Organization.

($1 = 6.6878 Chinese yuan renminbi)

Reporting by Samuel Shen and Brenda Goh
Editing by Nick Zieminski

Our Standards: The Thomson Reuters Trust Principles.

Adblock test (Why?)



Source link

Continue Reading

Investment

Not gold or bank FD, Jefferies finds this asset as top investment by Indians | Mint – Mint

Published

 on


Amid soaring inflation and slowdown worries, investors are busy finding out save haven for their money. While some are batting in favour of gold, some investors are favouring debt instruments for short term like bank fixed deposits (FDs) and other deposits. But, if we go by the Jefferies findings, around half of the Indian household savings in March 2022 has been invested in real estate properties whereas bank deposits and gold are distant second and third most preferred asset investment options among Indian households.

As per the Jefferies findings, out of $ 10.7 trillion Indian households assets in March 2022, whopping 49.4 per cent have been invested in real estate properties whereas 15.10 per cent went to band deposits 15 per cent of the Indian households savings were invested in gold. Impact of Covid-19 pandemic was also visible in this Jefferies report as Indian households invested 6.20 per cent of their net savings in insurance funds and it was fourth most preferred investment option by Indians.

View Full Image

Photo: Courtesy Jefferies

Provident funds and pension is at 5th spot after receiving 5.70 per cent of $10.70 trillion Indian households savings in March 2022. Despite heavy FIIs selling at Indian equity markets, DIIs have remained net buyers since October 2021. However, in Jefferies report, equities has received 4.80 per cent of the net Indian households savings in March 2022 and it is 6th most preferred investment option among Indians. As Indian households has a habit of keeping some part of its savings in liquid form. 

Jefferies report has a mention about it as well. As per the Jefferies findings, 3.50 per cent of the net Indian households savings in this period has gone to cash or liquid segment and it an obvious least preferred option among the Indian households.

Subscribe to Mint Newsletters

* Enter a valid email

* Thank you for subscribing to our newsletter.

Adblock test (Why?)



Source link

Continue Reading

Investment

HomeFirst Home Healthcare secures investment from Fulcrum – PE Hub

Published

 on


Harpeth Ventures also participated in the investment.




.blzbtn
display: inline-block;
font-size: 18px;
line-height: 26px;
font-weight: 500;
padding: 8px 15px;
text-transform: uppercase;
width: 40%;
margin: 3px;
min-width: 50px;
background-color: #F47920;
color: #ffffff;
text-decoration: none;
text-align: center;

@media (max-width: 1018px)
.paywall .blzbtn
display: block;
width: 100%;
margin-bottom: 13px;

.blzbtn:hover
background-color: #e58100;
text-decoration: none !important;

To read this article, you need to sign in.

You should only be asked to sign in once. Not the case? Click here


New to PE Hub?

Register now to read this article and more for free.

Adblock test (Why?)



Source link

Continue Reading

Trending