JARVIS Invest India’s First AI-based Investment Advisory AUA Rises 730x in 2 Years to Rs 100 Crore & customer Base Crosses 75000+
- Risk Management
- 19.05.2022 09:45 am
JARVIS Invest, India’s first Artificial Intelligence (AI) based investment advisory startup, has crossed an important milestone in April 2022. Founded in December 2016, JARVIS Invest has since grown to onboard 75000+ clients across 800 partners as of April 2022. The registered client base has grown multifold from about 500 in 2020 to over 75000+ now. The assets under advisory (AUA) has crossed INR 100 crore as of April 2022 from INR 13.7 lakh in 2019-20, a rise of 730x in two years.
JARVIS partners have grown multifold to 800 partners and its services now extend across Zerodha, HDFC securities, Mastertrust, Kotak Securities, Upstox, IIFL securities among others. JARVIS has seen great investor interest and has already raised Pre-Series funding of US $1million by BNP Investments.
JARVIS is a highly intelligent artificial intelligence (AI) - based portfolio management tool that has offered its investors exceptional returns along with unique risk management system (RMS) capacity. JARVIS uses proprietary risk management system takes into consideration over 1.2 crore local and global data points and monitors client wise investments 24x7 thereby providing a personalized portfolio to each individual investor as per his risk appetite.
JARVIS curated portfolio has provided average returns of 50-80% across portfolio categories and has outperformed Nifty*** since 2018. JARVIS Invest RMS**efficiency could recently predict the market crash of March, 2020 and January, 2022. In March 2020, Jarvis system started giving sell calls from first week of February thus saving about 50-70% of investor’s wealth.
Sumit Chanda, Founder and CEO, JARVIS Invest said “We founded JARVIS Invest with an aim to addresses limitations in the traditional equity investment model. The four key issues we wanted to tackle were the lack of access to personalized advisory, influence of human emotions and biases, absence of risk management system, and a one size fits all (model portfolio) approach. With our minimum investment size at INR 30,000, our aim is to democratize portfolio management for the retail and HNI investor at an affordable cost.
We believe that today’s highly uncertain and dynamic macro environment calls for a superior investing experience and the answer lies in AI. AI could be a potential disruptor in the wealth management industry in the coming years and it will help investors achieve wealth creation goals smartly.”
Here are some AI- driven insights according to JARVIS Invest:
Risk-taking capabilities of Indian millennial and GenZ investors has increased, says the data of 75000+ customers with JARVIS Invest. Around 78% of millennial and GenZ investors on the platform have a moderately aggressive to aggressive risk-taking capability. Increasing financial literacy, evolving work dynamics and the need for wealth creation are some of the factors contributing to the increasing risk appetite of investors.
In the current volatile market (March2022-May2022), the portfolios with higher concentration of mid-small cap have outperformed the Nifty 50 due to AI risk management system. While the Nifty 50 was down 4%, the Jarvis Invest aggressive portfolio was down 0.5%. Similarly, the mid-small cap heavy portfolios of Jarvis Invest delivered 34% returns vs Nifty50 12% (May 2021-May2022).
Recently, in March 2022 the AI predicted a falling market and had 40% of investor portfolio in cash or liquid bees to adjust against the volatile market.
Major goals for investing via the platform include capital preservation, goal-based investment, added monthly income, retirement planning, and wealth creation. Majority of the customers (nearly 6%%) invest in the equity markets with the objective of wealth creation.
The AI has allocated approx. 31% of the customer’s portfolio in Pharma & Healthcare and 18% to Financial services sector as of April 2022
AI sees higher allocation to construction and energy sectors over IT sector but sees no allocation to the telecom, metals, or cements sector as of April, 2022
The portfolios are a mix of large cap (56%) and small cap (38%) companies majorly