Product crack: www.5nance.com
It is a shop where you can buy mutual funds and few other financial products off the shelf
Financial technology companies, including robo advisors, are increasing. The latest to join the group is Innovage Fintech Pvt. Ltd, which has set up its online portal www.5nance.com.
WHAT IS IT?
5nance is more a complete money manager than a robo advisor. At the least, it is a shop where you can buy mutual funds (MF) and few other financial products off the shelf. In future, it will also help you shop for insurance policies and loans as per your needs. If you wish to subscribe to its robo advisory services, it will do a risk profiling, ask you to set your goals and then recommend products. Additionally, it also helps you with budgeting. For this, you could either sync your bank accounts and credit cards, and allow it to track your income, expenses or you could enter the details manually.
5nance is top notch when it comes to technology. With a few clicks, it can sync your bank accounts and credit cards to keep track of your income and expenses. Budgeting is a breeze and it gives you a good snapshot of your money life. It allows you to plan your financial goals, and prioritise them to check if you are on track or not. The data is safe and encrypted. But if you don’t want to sync your bank accounts, you can manually input the details. Its robo advisory arm will tell you how much you need to invest to be able to reach your goals, at the same time keeping an eye on your income and expenses. Calculations that could take a long time if done manually, happen quickly on 5nance.com. More products will get added once Internet buying facility is allowed in those areas. It will also tie up with banks to suggest loan products.
While the portal offers you plenty, the sheer scale of options could be intimidating for a first-time user. For instance, 5nance.com doubles up as a distributor as well. So, it is not mandatory for a user to get her risk profiling done at first. She can, for example, buy MFs straightaway. Also, there is no way of telling the quality of the recommendations. We did a dummy run and the schemes it recommended were out of Mint50, Mint’s curated list of schemes.
MINT MONEY TAKE
Fintech companies such as robo advisories are the way of the future. Their challenge is to make enough money to sustain and get enough customers. 5nance.com is funded by individuals in India and abroad. It doesn’t charge investors a fee despite being a registered investment adviser with the capital market regulator Securities and Exchange Board of India (Sebi). Its revenue is from commissions from MFs. However, charging the investor would make it more accountable.
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