Answer to “Is there a list of hedge funds or mutual funds that invest in fintech?”

Answer to “Is there a list of hedge funds or mutual funds that invest in fintech?”Someone asked the question: “Is there a list of hedge funds or mutual funds that invest in fintech?”. Below is my answer to that person —

You seem to want to have an investment exposure to fintech.

Even though financial service companies have been developing/adopting technologies at least for last couple of decades, fintech as a distinct and more visible space has been emerging strong only since last few years. So there are very few fintech companies that are public.


Answer to “Will robo-advisors replace independent financial advisors?”

Answer to “Will robo-advisors replace independent financial advisors?”Someone asked the question: “Will robo-advisors replace independent financial advisors?”

Robo-advisors / automated investment managers (AIMs) will make things hard for financial advisors with mediocre skills, and some jobs in this segments will be lost. However, financial advisors with superlative skills will survive (and may thrive) as they start to focus more on providing financial advisory services that are not provided by AIMs.


Answer to “Will there be oligopoly in the robo-advice industry?”

Answer to “Will there be oligopoly in the robo-advice industry?”Someone asked the question: “Will there be oligopoly in the robo-advice industry?”

Yes, in the medium-term (around next six years) in each market, there will be an oligopoly in the robo-advisor / automated investment manager (AIM) industry.

AIMs should be prepared for the long haul to generate profits. It is being discussed that an automated investment firm in the US should have at least US$30 billion under management to become cash-flow positive (assuming no further investment in new product development, and with most of the R&D spend going towards the maintenance of the existing product).


Answer to “Why do investments grow over time?”

Answer to “Why do investments grow over time?”Someone asked the question: “Why do investments grow over time?”

It is a powerful question (if the question is being asked with a philosophical bent of mind) !!

In my opinion, investments, at an overall level, grow over time, due to increase in the productivity of mankind.

The growth of civilizations, advancements in technologies, improvements in our ways of living, improvements in the quality of our lives, are mostly due to the intelligence and enterprise of mankind. This has resulted in a progressive increase in our productivity over millennia.