moneysights Raises $270K From Blume Ventures & Naveen Tewari

We earlier profiled Moneysights, a Bangalore based startup that is trying to change the way an average investor makes decisions regarding investing in Stocks & Mutual Funds. The site’s USP as Santosh (cofounder) shared in detail (in the comment section earlier) is the set of tools that the product provides to an average investor enabling him/her to make informed decisions vis-à-vis investing in financial instruments (Stocks & Mutual Funds).

What we do & do in a unique way is help users take decisions on investments in Stocks & Mutual Funds. an average investor just has 1 question in mind – is this stock/MF good? does it make sense for me to invest in it? we answer these questions in an unbiased way. And in future, we would help the user invest directly from moneysights.

And NO, we AREN’T for people who like to research companies thread-bare. in fact, on the contrary, we are for users who are looking to CUT DOWN time they spend in researching & planning investments. we automate everything for them – right from discovering, planning, deciding & managing. you would notice we don’t have industry reports, balance sheets or P&L statements & plethora of information that adds confusion. we do all the complex math & come out with our views in form of ratings.

Started by ex InMobi employees, Moneysights has raised $270K from Blume Ventures and InMobi founder, Naveen Tewari. The funding was raised in February 2011 but is being made public only now. moneysights raised angel round from Prasad Duvvuri, who has held leadership positions in IBM India & Hewlett-Packard.

The funds are being utilized to grow the team and plug the online transaction platform.

moneysights’ Secret Sauce

moneysights intends to be a tech-led, low cost, online distributor of financial products (starting with Mutual Funds). Pre-buying, the biggest problem is to identify which product (from 1000s of choices available) is best suited to one’s need and risk profile.

moneysights helps users solve this problem through their smart product recommendation & discovery engine. The recommendation engine creates a portfolio of high performing Mutual Funds that minimizes investment risk & at the same time is well diversified across sectors, market capitalization, etc. You can also customize the recommendations based on your risk profile. During-buying, the product intends to provide a simpler, faster and reliable buying experience.

Post-buying, one of the biggest problem is a clear visibility into one’s investments. moneysights helps users track all their investments at one place and give them actionable insights by intelligently combining user’s data and product performance data from the markets.

Online as a channel of distribution is at early stages – only 5% of them are bought online (on an average,Online sales accounts for 18% of total financial products sales in India). The recent lowering of sales-commissions have put the current high-cost offline distribution channel at a big disadvantage. At the same time, consumers have started adopting internet for researching financial products in a big way. This has led to an aggressive push from the industry side to develop & support online Mutual Fund transaction platforms & keep transaction costs low.

According to a KPMG report, assets under managemnet of Mutual Fund companies are slated to grow to $430 Bn by 2015 which translates into distribution market size of $2.25 Bn, which is what is eyeing through their Mutual Fund offering. These trends combined with the clear tech-led differentiator make moneysights an interesting play.

Do give moneysights a spin and share your review of the product.

Recommended Read: Interview with moneysights team.

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