WealthTech — Investing and Portfolio Management in India
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 Choose Broker: SEBI-registered only KYC: Aadhaar, PAN, In-person verification Link Bank: For fund transfers 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 Free Credit Balance: No charges on idle cash Nomination: Must offer multiple options Statement of Account: Monthly/quarterly 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 Open Demat: Choose discount broker for lower costs Complete KYC: Aadhaar-based eKYC Link Bank Account: For fund transfers Start Small: SIP ₹500/month in index fund 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 SEBI Investor Portal - Official regulations SEBI SCORES - Grievance portal AMFI - Mutual fund NAVs NSE - Stock market data BSE - Historical data This 101 guide is part of CashlessConsumer’s fintech education initiative. Last updated: March 2026. ...