WealthTech — Investing and Portfolio Management in India

What is WealthTech?

WealthTech uses technology to automate and enhance investment services—from robo-advisory to instant Demat account opening. India’s wealth management market is valued at $50+ billion (2024).

Key Segments

Stock Broking

  • Full-Service: ICICI Direct, HDFC Securities, Kotak Securities
  • Discount Brokers: Zerodha, Upstox, Angel One, Groww
  • APIs for Algo Trading: Flattrade, TradeSmart

Mutual Fund Platforms

  • Direct Plans: Save distributor commission (0.5-1.5%)
  • Regular Plans: Through advisors
  • Aggregators: Paytm Money, Scripbox, CubeWealth

Robo-Advisory

  • Goal-Based: Scripbox, Goalwise
  • AI-Driven: Avail plans based on risk profile
  • Hybrid: Human + AI (Arthayan, Scripbox)

Alternative Investments

  • PMS (Portfolio Management Services): High-net-worth focus
  • AIF (Alternative Investment Funds): Private equity, venture capital
  • REITs: Real estate investment trusts

How Demat Accounts Work

SEBI-Registered Depositories

  • CDSL: Central Depository Services Ltd (owned by BSE)
  • NSDL: National Securities Depository Ltd (oldest)

Process

  1. Choose Broker: SEBI-registered only
  2. KYC: Aadhaar, PAN, In-person verification
  3. Link Bank: For fund transfers
  4. Start Trading: Equity, F&O, commodities, currency

Charges

  • Annual Maintenance Charge (AMC): ₹300-750/year
  • Brokerage: Flat (₹0-20) or percentage (0.01-0.5%)
  • STT/SEBI Turnover Tax: On every trade

Investment Products

Equity

  • Stocks: Company shares on BSE/NSE
  • ETFs: Exchange-traded funds (index, sector, gold)
  • SGBs: Sovereign Gold Bonds (8+ year lock-in)

Debt

  • Corporate Bonds: Higher returns, credit-rated
  • NCDs: Non-convertible debentures
  • FDs: Fixed deposits (bank vs corporate)

Mutual Funds

  • Equity: High risk, high return (15%+ CAGR)
  • Debt: Stable returns (6-9%)
  • Hybrid: Balanced approach

SEBI Regulations

Investor Protection

  • Know Your Client (KYC): Mandatory verification
  • Risk Profiling: Must assess before selling
  • All-in-One Fee Disclosure: No hidden charges
  • Digital Contract Note: Within 24 hours of trade

Recent Reforms (2024)

  • T+1 Settlement: Next-day settlement (reduced from T+2)
  • Index Funds Mandate: 5 tracker funds by each AMC
  • Passive Funds Push: Lower expense ratios

Consumer Rights

Investor Rights

  1. Free Credit Balance: No charges on idle cash
  2. Nomination: Must offer multiple options
  3. Statement of Account: Monthly/quarterly
  4. Grievance Redressal: SEBI SCORES portal

Red Flags

  • Guaranteed Returns: No such thing in equity
  • Unsolicited Calls: SEBI-registered advisors only
  • Unregistered Schemes: Verify before investing
  • High Brokerage: Compare rates

How to Start Investing

  1. Open Demat: Choose discount broker for lower costs
  2. Complete KYC: Aadhaar-based eKYC
  3. Link Bank Account: For fund transfers
  4. Start Small: SIP ₹500/month in index fund
  5. Diversify: Don’t put all money in one stock

Reporting Issues

  • SEBI SCORES: https://scores.gov.in (15-day resolution)
  • Stock Exchange: BSE/NSE investor service
  • Depositories: CDSL/NSDL for Demat issues
  • Consumer Court: For fraud

Prime References

This 101 guide is part of CashlessConsumer’s fintech education initiative. Last updated: March 2026.