Jarvis Invest’s investment philosophy takes into consideration over 12 million local and global data points:
Jarvis Invest, India’s first Artificial Intelligence (AI) based investment advisory startup’s risk management system (RMS) efficiency could recently predict the market crash of March 2020 and January 2022, which gave its investors incredible trust in the system. Sumit Chanda, Founder & CEO, Jarvis Invest, explains its USPs: “We use proprietary risk management system that monitors client wise investments 24×7 and manage the entire investment lifecycle and provides real-time advisory to client on profit booking, partial profit booking, stock exit, auto-rebalancing, and portfolio reset. In the last one year, the system has proved the importance of a risk management system in managing investments in a market with a bearish undertone.”
Portfolio Management Tool
Jarvis Invest, founded in December 2016, is deep learning enabled equity advisory platform for wealth professionals. Sumit claims: “Jarvis is an intelligent portfolio management tool created by a team of seasoned individuals in the field of investments, research, and technology, with a common passion to improve investor experience when it comes to equity investments. It is emotion-less investing. Team Jarvis has a collective experience of more than 100 years in the capital markets.”
Its investment philosophy takes into consideration over 12 million local and global data points. These data points are across fundamentals, price & volume time series, corporate actions, government policies, regulations & compliance, global & domestic events, sentiment data among other macros to achieve predictability and accuracy.
Customer, Business Growth
Jarvis Invest has been able to achieve a topline y/y growth of 62% in Q1 in the current FY. It has outperformed Nifty for its corresponding portfolios. Jarvis has been running campaigns for its partners focused on the value that they can add to their clients’ investments by investing in Jarvis. Sumit claims: “We have been able to achieve a growth rate of over 650% in Q1 compared to last year with our customer base increasing from 7605 in Q1 FY 21 to 55,832 in Q1 FY 22. Our curated portfolio has provided average returns of 50-80% across portfolio categories. The consistency in generating returns when the markets turned volatile is the main reason for their conviction in us.”
Client Profile
As far as the client profile is concerned, 72% of Jarvis clients are online customers, who managed their investments on their own without distributor’s intervention or support. 67% of the clients are from Maharashtra. The rest are split between 9 states, with Gujarat leading the group.
Introducing New Products
With an aim to address limitations in the equity investments model such as no access to personalized research, influence of human emotions and biases, absence of risk management system, and a one size fits all (model portfolio) approach, Jarvis product aims to democratize portfolio management for the retail investor, with a minimum investment of Rs30,000. Jarvis Invest is in the process of introducing 3 new products and their variations in the next 3 months. Sumit concedes: “We went a little slow in bringing in these products in the markets since, we wanted the end customer to accept the idea of a computer managing their investments. Now that we got an amazing response in the last one year, we can expect these products to take off immediately. We will be launching an array of products catering to retail customers, institutions like mutual fund houses, insurance companies and broking houses.”
Jarvis Invest has been creating a basket of stocks customized to the client’s needs. These new products will ensure that the quintessential bottom of the pyramid, which usually keeps away from the equity markets, will also be catered to. We want to pursue the thought of financial inclusion in the truest sense, avers Sumit.
Seamless Journey
Covid has forced the customers and businesses to adapt the digital way of life. Jarvis Invest’s new products are also designed to ensure that the customer can access its products from any part of the world at his fingertips. Sumit explains: “Ours is a digital fund management model and we will continue to do so in the future as well. The partners and affiliates that we deal with on a daily basis, are building tech capabilities at their end to ensure that the client’s journey in Jarvis is as seamless as possible. Our distributors have been the driving force behind this.”
Love Money, Not The Stock
Jarvis Invest has also come up with solutions that will augment the research capabilities of the institutions involved in creating investment solutions. Sumit indicates: “We have always believed that the most important aspect of investing is the discipline; not just at the time of investment, but also at the time of exiting the investments. While this is our in-built feature, we have come up with an offshoot of Jarvis, which effectively embodies our belief of “Love the money, not the stock.”
Expansion, Growth Plans
Jarvis has observed that after Maharashtra, Gujarat has the maximum number of clients as well as partners. It is in the process of setting up an office in Surat, Gujarat. This will be followed by offices in Ahmedabad & Rajkot. They have close to 20% of the company’s total client base. This was the reason to start with Gujarat for the first branch. The company aims to move into metros and other cities over the next 24 months.
Jarvis has already won the trust and confidence of over 85,000 customers and its Assets under Advisory (AUA) has crossed Rs1 billion recently. From the business perspective, Jarvis is targeting 300,000 customers by end of FY 22-23 with an asset under advisory of approximately Rs2.50 billion. Sumit adds: “We are in the process of catering to the global audience, which will be done through our offices in Dubai. Jarvis will operate under AI Innovation License by Dubai International Finance Center (DIFC). We will be launching B2B product – White label Jarvis – for banks and wealth managers as early as November 2022. This product will be used by banks and wealth managers for advisory towards their customers in local markets like UAE. We will also be establishing our footprints across the globe in various geographies.”
