Prakarsh Gagdani is the new age investor who believes that there are no shortcuts for success with money. As an investor, one has to have the basic principles that govern wealth the right way, and patience is certainly the key. He is the Founder and CEO at 5Paisa.com, India’s first listed fintech company.
Prakarsh Gagdani started 5paisa with the aim to highlight the stock market in India. The company was started with the same goal as IFL had a few decades back. That time brokerage was charged at 1% by IFL, making it a discount broking of 0.5% for Prakarsh’s company, from where the concept of the name 5paisa originated. Further, Prakarsh explains that the name 5paisa seems to be an insignificant amount, which is exactly what you pay to get the invaluable service in return.
Prakarsh on the broking industry in India
Prakarsh finds the Indian broking industry quite positive. The pandemic acted like an inflection point for the dematerialisation account growth in the country, and since then the numbers have exploded. Prakarsh is hopeful that the trend in growth that hit the market at the onset of the pandemic will continue as millennial investors approach the capital market and make equity investments their primary one.
Prakarsh adds that though it is quite difficult to predict the year ahead in terms of new dematerialisation accounts, the growth trend in the years 2019 and 2020 shows some significant spikes. Though the percentage growth might not be the same because of the same factors, the overall growth in absolute terms seems to be assured.
Discount broking and 5paisa
Discount broking in Indian equities has been looking promising since the last few years. Prakarsh Gagdani is one of the handful players in the domestic markets who’s been playing the cards right with 5paisa. Gagdani estimates the discount broking segment to get a hike by 7-8% of the total retail business.
As a business, 5paisa witnesses a discount broking industry with entry barriers that needs deep pockets and an immense requirement to scale up rapidly. Typically, an online business in any industry supports few players. While the leader normally has a huge chunk of share closely followed by the second lead, the marginal players are left with a negligible share. The same pattern goes for discount broking as well, and hence the need for a market leader!
Today, after four years of establishment, Gagdani has taken 5paisa from scratch to a profitable venture with over 10 lac customers. At present, the company is a multi-product financial platform offering equity, mutual funds, insurance and lending products among others.
Gagdani on equities and beyond!
Prakarsh believes that the vital element for mutual fund investments is to make the process simplest where the options are many in each category and benchmarking in not standard. To deal with these issues, Gagdani has come up with an automated advisory process, known as Robo Advisor, which asks queries and then gives portfolio options in crisp fashion.
Prakarsh also believes that the equity market has observed a steep participation by the retail investors. Thanks to the strong dematerialisation growth, it turns out to be beneficial in terms of new client additions, especially in the previous year during lockdown. He also points out the participation of retails in IPOs as the second parameter for the rocketing equity market.
Prakarsh counts the organic traffic and organic account opening as the growth levers owing to the references through the strategic partnership and digital marketing strategies practiced by 5paisa.
Prakarsh Gagdani at Bull Run Summit
Prakarsh Gagdani joins us at Bull Run Summit from 23rd to 25th July to share his insights on how Equities and Exchange Traded Funds (ETF) work. He also shares stories of 5paisa, tips for the retail investors, and more.
Join him by registering at https://www.bullrunsummit.com/.
Mahendra Kumar Jajoo is the Head of Fixed Income of Mirae Asset Investment Managers (India) Pvt Ltd. Jajoo has an experience of over two decades in the field of financial services, including 12 years of experience in Fixed Income funds management. He is responsible for supervising all debt schemes of Mirae Asset Investment Managers (India) Pvt Ltd.
Nikhil Kamath is a financial wizard and the Co-Founder of Zerodha, India’s first online brokerage firm in 2010. The bootstrapped startup which Nikhil started along with his brother Nithin has a valuation of over INR7000 crores making Zerodha the largest retail brokerage platform of the country.
“Trading Is My Passion, Trading Is My Life” – says Avadhut Sathe. Trading in the stock market since 1991, Avadhut has witnessed the Bull and Bear market cycles for more than two decades. He stands out as a stock market trader, trainer and mentor at Avadhut Sathe Trading Academy where he helps people to fulfil their dreams of financial freedom.