Scripbox's fee-based advisory: A potential challenger for Groww, Zerodha Coin?
Equity schemes typically have higher expense ratios, followed by debt and liquid funds. Read this | Mint Explainer: How Sebi is cracking down on unregistered investment advisors Popular brokerage firms like Groww and Zerodha Coin offer direct plans without advice, leading many users on these execution-only platforms to buy trending or high-return funds out of greed or lack of knowledge—a strategy investment experts consider risky. Vishal Dhawan, a registered investment adviser and founder of Plan Ahead Wealth Advisors, emphasized the importance of advisory services.
He noted that many investors on execution-only platforms tend to chase past top performers, leading to imbalanced portfolios. Recently, a significant portion of mutual fund (MF) inflows has been directed towards thematic and small-cap funds, driven by past performance. Dhawan suggests that advisory services can help investors create more balanced portfolios, avoiding the pitfalls of chasing trends.
More here | Where are India’s missing investment advisers? As investors increasingly demand transparency and personalized financial guidance, Scripbox's model is trying to tap those seeking advice and not just execution. While many platforms offer direct mutual fund plans, Scripbox distinguishes itself by pairing these with advisory services. “The fee looks attractive but the platform might decide to hike the price like every other startup in the later stage," said Dhawan The platform's new monthly RIA plan, priced at ₹299 for six months, provides commission-free direct plans and expert advice.
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