India’s path to wealth creation through innovation shines brightly with the rise of fintech pioneers, vibrant capital markets and visionary entrepreneurs. This narrative emphasises the dynamic momentum driven by fintech entities and flourishing capital markets, highlighting a dedication to inclusive progress and showcasing the contributions made by abans Financial holdings.
At the core of India’s economic revitalisation stands the GIFT International Financial Services centre in Gujarat. as India strides forward as a prominent global investment destination, the emphasis on harmonising regulations with international norms becomes paramount, inviting foreign investors to its shores.
Abhishek Bansal, founder-chairman, Abans group, highlights the pivotal role of regulatory coherence in driving investments. “achieving alignment between national regulatory bodies and the GIFT regulator is crucial for enhancing foreign investors’ attraction to GIFT city,” affirms Bansal. “This approach ensures the implementation of investor-friendly policies that align with global standards, fostering confidence and interest among foreign investors in GIFT city”.
“It is imperative to align policies and regulations with international standards while striking a delicate balance to craft measures that are acceptable to national regulators,” adds Bansal. “This strategy ensures the implementation of investor-friendly policies that align with global expectations and are synchronised with the regulatory framework, thereby cultivating confidence and generating interest among foreign investors in GIFT city”.
In recent years, India’s alternative investment funds (aIF) industry has faced regulatory hurdles but has, nonetheless, experienced substantial growth. Investors, ranging from institutions to high net-worth individuals, are increasingly attracted to alternative investments, seeking diversification beyond traditional assets. according to Bansal, “Specialised funds concentrating on sectors such as technology and healthcare have become popular, providing targeted exposure and potentially lucrative returns. The sector has bolstered confidence through positive performance results, successful exits, and favorable returns, thereby attracting more investors. Despite regulatory challenges, the aIF industry’s adaptability to market dynamics and increasing investor trust position it for sustained growth in India”.
Evolution of robo-advisory
Bansal emphasises the importance of utilising derivatives to analyse and mitigate a range of risks, including market volatility, currency fluctuations and unexpected events. “at abans, there is a significant focus on identifying and managing risks as a fundamental aspect of the wealth generation process through derivative strategies,” he informs. “This emphasis on derivatives is in line with a wealth generation approach that prioritises risk awareness, highlighting the central role of comprehending and addressing potential downsides in the endeavour to build and safeguard wealth for abans clients.”
The evolution of Indian markets across asset classes has been profoundly influenced by technology, particularly through the advent of robo-advisory platforms. These platforms leverage cutting-edge algorithms to analyse data, identify patterns and execute algorithmic trading strategies with remarkable accuracy, thus enhancing trading efficiency.
“Moreover, robo-advisors stand out in risk management with their sophisticated algorithms, offering round-the-clock market surveillance for enhanced monitoring”, remarks Bansal, adding that, “furthermore, they can integrate behavioural analysis, providing a nuanced understanding of market dynamics.”
Over the next five years, abans anticipate a transformative evolution in wealth creation characterised by several pivotal trends. Primarily, there will be a pronounced shift towards digital financial services, with an increasing dependence on fintech platforms for a wide array of financial activities spanning banking, investments and financial planning.
another significant trend involves the growing significance of environmental, social and governance (ESG) criteria in investment decisions, reflecting investors’ broader commitment to sustainable and responsible investing practices and aligning portfolios with ethical considerations.
Talking about the investment strategies, Bansal feels a surge in interest in alternative asset classes like private equity, venture capital and real estate is expected, as investors seek diversification beyond traditional options to explore avenues with potentially higher returns. Personalised financial planning is poised to take center stage, responding to the escalating demand for customised solutions. By leveraging data analytics and artificial intelligence, financial planning will be tailored to individual needs, offering more precise and effective strategies.
The collaborative landscape between traditional financial institutions and fintech companies is set to deepen, aiming to enhance services, streamline processes and introduce innovative financial products. .
Lancelot Joseph
lancelot.joseph@businessindiagroup.com