Kuvera: The Commission Free Investment Platform

  • 6 December 2017 | 2516 Views | By Mint2Save
What is Kuvera

Kuvera’s tag line reads “The best things in life are free“. Interesting, isn’t it? Well, when it comes to the world of money, where no one works for free, it certainly is quite interesting. The term Kuvera (or Kuber) refers to the God of Wealth, and now a startup of the same name is preparing itself to reinvent the meaning of the term. How does it plan to do so? Let’s find out!!

The Evolution of Investing

The dawn of an era dominated by the young generation, has made the world to witness some out of the box ideas. There has been tremendous number of tectonic changes in various trends, ideation and general living.

Obviously, the world of finance is no exception to it. The staple investment class of real estate is diminishing, while cryptocurrencies is making a grand welcome. As a fortunate symbol of sensibility, the distributed investment platform: mutual funds has also been interestingly explored by the next gen. The diversity of the asset classes, along with tax benefits and top notch regulation, has made mutual fund a long run hit.

The entrepreneurial side has also seen some exciting startups that include technology oriented investment platforms like Scripbox to expert advisory ones like FundsIndia. Startups acting as alternative to Fixed Deposit and Recurring Deposit have also started to create good attention, FinoZen is quite a clear example of the same.

What the naive investor misses in this investment binge is the way these advisors tend to make money. Mutual Fund agents/advisors, just like life and general insurance advisors, create wealth via the commission they earn from their clients. As known, this commission is nothing, but a chunk of the investment that the investor has made and the returns that he is going to get.

While this commission may not seem to bother much when the investment amounts are low, but repeated transaction of smaller amounts (read SIP) or large amounts invested, do generate some consistent considerable flows for the advisors. This commission crisis, which may tend to get unfriendly to the less finance savvy investors, has now found a solution.

Exploring Kuvera

This solution, as it should be, is the courtesy of a fresh startup named “Kuvera”.  In simple terms, Kuvera is a mutual fund investment platform that would advise as well as distribute mutual funds, but unlike its competitors, Kuvera would not charge any commission from its clients. Thus, any investor who uses the Kuvera platform for his mutual fund investment would not lose even a penny of his money in terms of commission paid to the agent. They do this by investing into the direct mode of investment, instead of the regular investment modes. If you compare the NAV of a direct mutual fund to its regular counterpart, you will find some difference in the NAV. Also, the expense ratio of the direct mutual fund is lesser than the regular ones, due to omission of commission plans for the distributors.

This commission makes a huge difference when investment is made for a longer duration and/or has a large sum of money to be invested. cases, even small percentage of commission creates a snowball effect, about which the investor can do nothing, but just watch. This is the main USP of this startup.

Adding to it, Kuvera’s investment advisory system is also designed to be smooth and simple process. As most investments are designed for, it follows a goal based approach. As explained in the video below, all it takes is a maximum of two-three minutes to start chalking out a plan for a goal. Kuvera will not only sort out your risk taking ability, but will also optimise the investment options accordingly.

It is quite certain that Kuvera’s founders have worked out something inspired from the Einstein idea of simplicity. The initial impression of Kuvera, can simply be summed up in Einstein’s five ascending levels of intellect, which were: Smart, Intelligent, Brilliant, Genius, Simple.

How is Kuvera Going to Earn?

With a lucid investment interface and commission free distribution, Kuvera has left no stone unturned in getting attention from the investor masses. But, for the vigil eye, the question about how will Kuvera earn could turn out to be quite a mystery.

As per the website, Kuvera generates revenue from the data analytics and B2B services. Reiterated, these services would not hamper the investor’s return. Further, Kuvera also plans to launch dedicated Portfolio Management Services and Alternative Investment Funds to keep their revenue growth ticking.

Thorough time investment on Kuvera’s website makes it crystal clear that their team has delved deep into the concerns of the investors and have answered almost all curiosity concerns.

How does it Fair when put against Competition?

As of now, Kuvera has no competitor in the type of mutual fund distribution it is involved in. Scripbox, FundsIndia and FinoZen are regular mutual fund distributors and there is no sign of these startups to incline towards regular modes. However, other than the proposition offering, there are more methods in which Kuvera can be compared to other online mutual fund startups.

  1. Number of Fund Houses Associated: As of today, Kuvera has tie-ups with around 34 mutual fund houses, which is approximately a dozen short of the total number of mutual fund houses in India. We hope it equips itself soon with all of them.
  2. Security: Kuvera has some of the highest levels of cyber security to prevent data as well as financial loss to its users. It’s security is at par with the banks.
  3. Licence: Kuvera is a Registered Investment Advisor as per terms of SEBI and hence, can be trusted with the highest level of professionalism for mutual fund based investments.

Direct mode of investing has been gaining momentum among investors, however, without proper advise, it is not worthy to risk your hard earned money in such funds. Taking advise and investing via a mutual fund agent/distributor would land you into the regular mutual funds and hamper your returns. Now, with services like Kuvera, you can fearlessly invest into direct mutual funds and get the maximum benefit of your investments.

Road Ahead

This startup is an ideation from geniuses that carry education tags some from some of the finest technology and management institutes of the world. Their intention is to make Kuvera synchronized with one’s investment habits. They have begun their journey with mutual funds, but with the response it has received, it is quite expected that the founders would soon embark a fully fledged financial journey in form of insurance policies, and advisory to other government schemes such as PPF, RBI bonds, Sovereign Gold Bonds, etc.

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