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How fintech apps have helped in financial inclusion

With mobile becoming an integral part of our daily life and its reach in every nook and corner of India coupled with high-speed internet, nothing seems unreachable and unwished. India is a country with a huge geographical spread; introducing and educating the people about the importance of investment and savings would take another 2-3 decades. But sincere thanks to the start-up ecosystem that this has become possible in a short span of time. A person sitting in Tier II or Tier III city can invest in MFs, stocks, IPOs and Bitcoins by just clicking a button with the help of fintech apps. The most important point why we should invest and save has taken a back seat as each and every financial ad says, “Investment in the Securities market are subject to market risk. Please read all related documents before investing”. It tells everything in a nutshell.

Now think like this, you are driving a car without knowing the importance of A, B, C (Accelerator, Brake, and Clutch) and shifting of gears at right time and at the right speed, the result would be an accident which will leave you with bad memories and you would think twice to start driving again. Instead, the better way would be to first understand the synchronisation between all of them with the help of an expert which will not only make you understand the synchronisation between all of them but make you understand the traffic rules as well so that mistakes or mishaps can be avoided in near future.

In the same way, before you start saving and decide to invest in any of the regulated products you should be aware of basic features of the products – like what are the risk and volatility associated with them, will it help you to achieve your long term or short-term goals, what are chances of loss and most important will you be able to manage your behaviour in tough times without any proper hand-holding.

After knowing all the basic information and features you should also be aware of the proper mix of products that will give you optimum returns.

In a nutshell, the caveats – like consult an expert, do your risk profiling, understand the markets dynamics, risk and volatility associated with the products, right product mix should also be highlighted that will cement the efforts of fintech apps and financial inclusion in true sense and hard-earned money can be channelized in a better way.

Views are personal: The author is Vidit Bhura, Partner at JNV FINANCIAL SERVICES LLP from Jaipur.

Disclaimer: The views expressed are of the author and are personal. TAML may or may not subscribe to the same. The views expressed in this article / video are in no way trying to predict the markets or to time them. The views expressed are for information purpose only and do not construe to be any investment, legal or taxation advice. Any action taken by you on the basis of the information contained herein is your responsibility alone and Tata Asset Management will not be liable in any manner for the consequences of such action taken by you.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

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