Passionate Product Manager | Driving Positive Social Change | Innovator in Fintech | Financial Inclusion Advocate
The scarcity of quality financial advisors India's financial landscape is evolving rapidly, with a significant rise in investments over the past few years. The number of demat accounts almost doubled from 36 million in 2019 to 115 million in 2024, and mutual fund investors have seen similar growth. However, the scarcity of quality financial advice is a major hurdle. SEBI reports only about 1,300 registered investment advisors (RIAs), creating a poor ratio of one advisor for every 76,800 investors. Despite Indian households saving about $500 billion annually, net investing in equity was only $3.5 billion last year, a mere half a percent of our annual savings. This gap highlights the critical need for quality financial advice. While there are online resources, they often lack the depth and personal touch required to inspire confidence and significant investment. Financial education in India is another missing link. Unlike the US, where financial literacy starts early, India has yet to foster such conversations. The business model for financial advice is also a challenge, with most savers reluctant to pay fees, leading to a skew towards commission-based models. To bridge this gap, we need more RIAs and a supportive ecosystem that allows them to thrive despite regulatory challenges #FinancialLiteracy #Fintech #India #Invests
