Soon startups like Zerodha, Groww & PhonePe will soon launch their own Mutual Funds!

Why is every Investment App trying to become a Mutual fund company?🤔

Let's understand👇

A Thread🧵

FinTechs like Zerodha and Groww have already disrupted the stockbroking & mutual funds distribution space and have become the largest player in their industr, they own the distribution.

What's next?

They want to make their own Mutual Funds & control the manufacturing as well.
Why now?

In Dec 2020, SEBI made it easy to apply for a Mutual Fund license. Earlier, they needed to be profitable for the 3 out of the previous 5 years including the most recent one - and no startups were profitable. But now, they just needed to show a net worth of Rs. 100 Cr.
This is also the perfect time to enter the Mutual Fund market. India is still way under-penetrated with a lot of first-time investors coming. And as per Nithin Kamath, Mutual funds will be one of the key products to push more people into investing.
Who all are in the race?

Largest stockbroker (Zerodha), Largest mutual fund distributor (Groww), one of the biggest NBFC (Bajaj Finserv), several star investors like Deepak Shenoy, Rakesh Jhunjhunwala are strong in the race, apart from FinTechs like Paytm Money, PhonePe & Niyo.

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The first ever world map was sketched thousands of years ago by Indian saint
“Ramanujacharya” who simply translated the following verse from Mahabharat and gave the world its real face

In Mahabharat,it is described how 'Maharishi Ved Vyasa' gave away his divine vision to Sanjay


Dhritarashtra's charioteer so that he could describe him the events of the upcoming war.

But, even before questions of war could begin, Dhritarashtra asked him to describe how the world looks like from space.

This is how he described the face of the world:

सुदर्शनं प्रवक्ष्यामि द्वीपं तु कुरुनन्दन। परिमण्डलो महाराज द्वीपोऽसौ चक्रसंस्थितः॥
यथा हि पुरुषः पश्येदादर्शे मुखमात्मनः। एवं सुदर्शनद्वीपो दृश्यते चन्द्रमण्डले॥ द्विरंशे पिप्पलस्तत्र द्विरंशे च शशो महान्।

—वेद व्यास, भीष्म पर्व, महाभारत


Meaning:-

हे कुरुनन्दन ! सुदर्शन नामक यह द्वीप चक्र की भाँति गोलाकार स्थित है, जैसे पुरुष दर्पण में अपना मुख देखता है, उसी प्रकार यह द्वीप चन्द्रमण्डल में दिखायी देता है। इसके दो अंशो मे पीपल और दो अंशो मे विशाल शश (खरगोश) दिखायी देता है।


Meaning: "Just like a man sees his face in the mirror, so does the Earth appears in the Universe. In the first part you see leaves of the Peepal Tree, and in the next part you see a Rabbit."

Based on this shloka, Saint Ramanujacharya sketched out the map, but the world laughed