How JARVIS gives pricey investing services to the average man at cheap pricing
How JARVIS offers expensive investing services to the general public at reasonable pricing For a high-net-worth individual (HNI) and someone who wishes to invest modest sums, the investment process looks very different. There are banks, investment companies, brokerages, and brokers available to HNIs. But for the smaller guys, we're basically left on our own to make our own (usually ignorant or at least partially educated) investing judgments.
The lack of good, knowledgeable, and well-researched advice is a major factor in why ordinary investors don't profit significantly from the stock market. For instance, in a conventional setup, portfolio managers continuously assess and modify the assets they oversee for investing goals. Retail investors miss out on profitable investing opportunities because they either don't understand how to interpret these signals the way portfolio managers do, or they don't know how to respond to them.
JARVIS is an artificial intelligence platform that was established in 2016 by Sumit Chanda and offers end-to-end, customised, and personalised investing services for individual clients. It performs all the duties of a conventional investment bank, including risk management and asset reallocation, and it caters to investors with investment amounts between Rs 30,000 and Rs 1 lakh.
These restrictions mainly included the absence of individualised investment advice, the impact of investor emotions and prejudices, the lack of a risk management system, and a one-size-fits-all strategy.
Jarvis' artificial intelligence, which uses the reinforcement learning approach to continuously improve over time, is able to overcome these restrictions.
According to Sumit, the AI platform now uses 1.2 crore local and international data points to decide on investments and make judgments.
How it works
The startup's platform for retail investors, JARVIS Invest, asks each user ten simple questions to measure their risk appetite before assigning them one of six risk profiles (from risk-averse to very aggressive).
The program then builds a custom portfolio of stocks and other financial assets based on the user's profile and current market activity.
Every portfolio is made in real time and is specific to the user's needs. Depending on the real-time market conditions at two different periods of the day, the same user may receive two distinct portfolios, "saids Sumit.
The AI then continues to monitor the performance of the portfolio, just like an investment manager would, and makes rebalancing recommendations as needed. Additionally, it offers consumers real-time advice on exits, portfolio rebalancing, and exits with partial profit booking. Each advice or transaction may only be accepted or rejected by the user.
