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New Technology Makes Investing Easy In India

Investing in India has always been plagued by the lack of reliable research and investment advice. Stock brokers have for long been accused of coercing investors to invest in companies that most often deliver returns lower than they promise. Investors have also been unable to overcome their internal biases while making an investment decision. Many of them invest based on rumours spread on online message boards and incompetent advice offered by friends and relatives. Getting professional advice before investing is getting difficult with each passing day because of the inaccessibility of personal advisors and the growing pool of investors who do not understand market dynamics

Investing in stocks and mutual funds is fraught with many risks which can be reduced by intelligent investing. Around the world stock brokers are turning to harnessing the power of artificial intelligence to reduce risk and fine tune their investment decisions. While Institutional investors benefit from the accuracy of algorithmic trading, retail investors have been left out in the cold as they cannot afford to purchase and maintain such complex software programs.

Indian Landscape

Angel Broking has become India’s first stock broker to roll out an algorithmic advisor for its retail clients. Designated as “ARQ” the algorithm recommends funds based on future performance rather than rely on past performance data. The algorithm scans through thousands of variables in the data generated on stock exchanges to arrive at a buy or sell decision on stocks and mutual funds. Humans are limited by their capacity to analyse data but a computer can decipher trends by analysing thousands of terabytes of data. Once the data is analysed ARQ makes recommendations depending on the risk profile of the investor.

ARQ becomes sophisticated over time as machine learning kicks in, it will be able to predict stock movements well in advance and identify qualitative improvements much before other participants in the market catch on to it. For example, it could analyse the balance sheets of thousands of companies and immediately determine which sector is facing an upturn in profits and invest in companies that operate in that sector. For a human to perform this task it would take weeks.

ARQ is based on the award winning Modern Portfolio Theory which got its proponent Henry Markowitz a Nobel prize. This theory helps risk averse investors build investment portfolios which maximize returns based on the level of risk he is willing to take on. This theory is used by hedge funds and investment bankers all over the world.

This customized solution is already benefiting thousands of investors who have signed up. ARQ has delivered above average market returns in the last few months. The custom advice provided by ARQ can substantially reduce the risk faced in making investments. You can make your first investment within 60 minutes of signing up at ARQ. Try it today and let us know about your experience in the comments below.

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Abhay N

Author : 

Abhay is the founder and managing editor of India Microfinance. He is passionate about microfinance, financial inclusion and social entrepreneurship in India.

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