Investment products by Orowealth

Orowealth investment

Mutual funds are very big business for the Indian financial service companies, individual advisors and banks. A good mutual fund mirrors how an industry or other sector is doing. The values of Mutual fund change on a daily basis. Back in 2013, SEBI announced that every mutual fund scheme would need to have two plans. One out of these would be the regular plan, which had already existed to date. In addition, mutual funds had to introduce a direct plan of the same scheme that would be similar to the regular plan in all respects but would have a lower expense ratio (i.e. fees paid by the investor to the mutual fund). This is so because when an investor invests in the direct plan, there is no distributor involved and thus the commissions that mutual funds have to give to the distributors, go away. Direct plans give better returns every year as investors do not have to pay commissions. Despite this, approximately 90% of retail investors invest in Regular plan chiefly due to lack of awareness. Investors can now execute transactions in Direct plans through platforms such as ORO wealth.

What is Orowealth? Is Orowealth Free  to Use?

The retail investors make three common mistakes while investing which drags down the returns or leads to expectations mismatch. These mistakes include: paying too high commissions to the mutual fund distributors, under-diversification, and portfolio not being aligned with risk preferences and the desired goals. Orowealth here comes to the rescue as it takes care of all three of these to provide a superior investment experience.

Investment products by ORO wealthOrowealth is a new age Fintech Company that has built a Direct Mutual Fund platform. For the first time ever retail investors can transact in direct plans with the same convenience and level of service as the standard plans. Direct plans are 1 to 2% cheaper compared to regular plans. A difference of 1-2% may not look extraordinary at the first glance. However, it should be remembered that these commissions are charged every single year. With the power of compounding, the difference in returns can be substantial for long-term investors. 

Founded in the year 2016 by a team of IIM and IIT alumni having experience of over 17 years in Indian and international financial markets. The company is transforming wealth management leveraging technology, data analytics, and regulatory changes. They offer personalized solution services to its retail investors and do not push their investment products. They can calculate the best options available for their customers based on a variety of factors like their risk profile, their expenses, income, and goals, etc. Even the big established companies cannot do this as they are not tech-focused and are also tied into the commission model which gives them an incentive to sell the product with the highest commission. ORO Wealth additionally allows retail investors access to sophisticated advice and techniques that are available to high net worth individuals and institutions. For investors eyeing to further enhance their returns with the help of financial advice, ORO wealth also has an online fee-based advisory platform.

How does Oro wealth operate?

When investors invest money in mutual funds, the mutual fund distributors get a certain percentage as commission. But, there are a few companies that charge “zero commission” and one of them is ORO wealth. They have helped investors save Rs 30 crore in commission to date. Instead of charging mutual fund commission, Orowealth makes money as a fee-based advisor as it is a registered investment advisor with SEBI. 

Paying lower fees on exactly the same fund directly transforms into higher returns for investors. The difference between the expense ratios of regular plan vis-à-vis a direct plan can be as high as 2% for some of the mutual funds. On an average, direct plans are 0.66% cheaper than the corresponding regular plans, which translates into a discount of nearly 40%!

Apart from all of this Orowealth also charges a small fixed one-time convenience fee of Rs 50 per transaction, irrespective of the amount transacted for switching from investors existing investments in Regular Plans to Direct Plans. This is charged upfront and is known to the user. There are no other hidden commissions/fees received by Orowealth.

Leverages of investing with Orowealth

Orowealth is amongst the first provider in India of tech-enabled, automated wealth-management tools that help the retail investors and financial intermediaries to get easy access to high quality and unbiased advice and also investment support for themselves and their clients. The benefits of investing with Orowealth include:

  1. Zero Commission: Orowealth does not charge any commission for distributing funds to its investors. Thus, an investor can save thousands in just saving the commission.
  2. Assisting Novices: If you are a novice investor or if you do not have time to track your portfolio, ORO provides you support from a team of experienced and well-qualified experts. Experts help you in every step of your journey towards achieving your desired goals and financial independence. They even provide free webinars with their Fund managers for their clients.
  3. Security: ORO takes security seriously and has world-class safety and security features patched to its platform. They ensure the security of the personal information collected from its clients.
  4. Independent decision-making: ORO provides the investors with an option to choose from the numerous funds present. ORO offers the opportunity to choose from almost all the fund houses in India and even walks an extra mile with the investor and helps them plan and track their goal.
  5. No minimum investment requirements: There is no minimum amount required by ORO to use the platform. The minimum amount is determined by the scheme the investor decides to invest in. This minimum amount varies from scheme to scheme.
  6. Family account: It is one of the very few providers of family account whereby you can see a consolidated view of the portfolio of all investments made by the investors in that account.
  7. ORO advisory: ORO has made available intelligent, and hassle-free consultation to clients at a meager cost because it believes in profit maximization for its clients. 
  8. ORO stocks: ORO also provides the investor with the option of investing in Stocks. With the rising demand for shares that are selected based on available data and artificial intelligence, the ORO stocks option provides the investor with time-tested models for investing in stocks also.
  9. Scans the client’s portfolio constantly: For consistent performance, the portfolio needs to be reviewed and rebalanced regularly. ORO Assist scans the client’s portfolio constantly, to make sure it’s up to speed. It provides quarterly portfolio reviews and insights to its clients. It even suggests intelligent tax-efficient rebalancing to its clients.
  10. ORO top picks: Based on their proprietary algorithm, ORO has come up with a list of funds that they expect to outperform in the different categories. Thus they suggest and help the investor to buy, sell or switch funds, at the best time, with just one click.

Concluding lines

In India, the financial services industry is going through a dramatic tectonic shift driven by technology and innovation. Through artificial intelligence along with human-assisted investment planning, ORO wealth is enabling access to financial products for the retail investor and decreasing time-to-market for major banks, large wealth management giants and brokerage houses. ORO wealth is eyeing on the $270 billion Indian financial assets industry which is expected to grow at 31% p.a. ORO’s tools also have the capability to go global and focus on the $294 trillion global financial assets industry.

ORO wealth is India’s first zero commission, cutting edge investment platform with award-winning advisory services. It seeks to be a one-stop solution for all your investment needs from investing in stocks and direct mutual funds, to financial planning, goal advisory and more. By using a fraction of what you save in going Direct (by not paying commission), investors can now get fee-based, unbiased advice.

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