By 2025, with more than 200 million demat accounts and 5.5 crore mutual fund investors, retail participation in the capital market has reached its peak. To mark a huge change in the history of wealth creation. However, within this growth, a very essential component remains weak, availability of reliable financial advisors.
The number tells a quiet story. There are about 1,300 SEBI registered investment advisors (RIAs) for a 1.4 billion population in India. In other words, about one RIA for each 76,510 investors. SEBI remains negligible, despite introducing the RIA structure more than a decade ago.
This zero has allowed the emergence of proclamations of financial gurus, YouTube efficients, and WhatsApp groups, and many times, avoid regulation to proof to avoid regulation. Unfortunately, results have increased in scams and wrong-peach products, affecting investors’ confidence.
Artificial Intelligence (AI) can be a gamechanger in wealth management, but not human advisors, but, it will act as a force multiplier. For RIAS, AI can originally improve scalability by serving a large number of customers by automating portfolio reviews, compliance checks and landscape analysis. AI, with the right railing, can work within the sebi regulated framework using an audited financial data to reduce misinformation, reduce the lowest general division of advice and behavior risk, and ensures that customer compliance is embedded with every recommendation. AI can also provide real -time privatization of advice by responding to the financial goals of individuals, risk hunger and demographic profile.
The AI capabilities are beyond recommending a portfolio. It can be a financial coach for millions of people for life. It can actively protect investors from risky and rejected sources. Even more importantly, it can provide relevant advice, that is, the first time the investor can explain the results of the results of being highly exposed to the small cap fund, or the consequences of emphasizing a salaried professional on tax-skilled strategies.
AI has the ability to educate real -time and scale to separate AI. In Surat, an investor may receive the same quality of guidance as an investor in Mumbai, but in Gujarati, through an interactive vernacular interface. Results are equal access to reliable investment education. Geography or any other difference does not matter, and this wealth breaks the monopoly manufactured monopoly on advice.
The future of financial advice in India should be complied with in nature and AI can serve as the foundation stone to stop the advice in India. Importantly, AI must be compliant at its origin, in which the system is only trained on SEBI rules, and is equipped with audit trails and shows to reduce the risks of generic models.
The human-AI hybrid models are equally important, which mixes AI’s speed and analytical ability with human sympathy, which can ensure that advice is efficient and reliable.
India’s next chapter of financial inclusion teaches people to invest, but to understand them to understand it will not happen to whom they can invest, where they have to invest.
AI, with compliance and transparency, it may be that reliable wealth may be protectors that empower investors, support regulators, and expand the ability of some registered advisors present with us.
This man is not a question of vs. machine, but how the two can work together, where human insight comes from AI intelligence to make financial knowledge more accessible. Encouraging the widespread acceptance of AI can help in changing the way India invests, which leads millions of people to clever, more informed decisions.
This article is written by Ajay Lakhotia, Founder and CEO, Stockgro.
