Mutual Funds : Bank Bazaar Also Ventures into Online Distribution of Mutual Funds
Bankbazaar.com has announced its plans to expand its portfolio into investment category, starting with mutual funds in the first quarter of FY16-17. Well-funded Bankbazaar.com will provide retail investors customised suggestions on mutual fund schemes through its online platform. It also plans to offer mutual fund schemes from select asset management companies (AMCs).
However, the online distribution platform is already crowded. Websites like fundsindia.com, scripbox.com and others are selling mutual funds online, apart from brokers. Bankbazaar’s entry would make this space overcrowded. Bankbazaar claims to be taking on the role of ‘Robo-advisors’, and will use a ‘proprietary research methodology’ to provide ‘research-based’ suggestions. However, it is not clear if Bankbazaar is an adviser or a distributor.