Taking the road less travelled, this woman paves her way to success in male dominated finance industry

After working for over a decade in the field of investment research and portfolio management, a woman passionate about finance took the road less travelled by many women. An IIT Kanpur graduate, Sonam Srivastava created a wealth management platform in 2019 to utilise her skills and expertise towards democratising investment strategies. Mumbai-based Wryght Research and Capital Private Limited, a Sebi registered corporate investment advisory and research firm leverages quantitative research and machine learning backed data-driven methods to create stable investment options and deliver better returns for clients. The investment products are available for retail investors as robo-advisory portfolios. Recently the firm launched an artificial intelligence powered mutual fund transaction platform. They have listed 17 offerings namely, nine curated portfolios, five MF portfolios, and three alternative portfolios. The other four major services offered by the platform include, Equity Portfolio Advisory, Mutual Fund Advisory, Alternative Advisory and Global Portfolios. In conversation with Bizz Buzz, Sonam Srivastava the founder of Wright Research says, “I wanted to offer personalised investment advice to individuals and democratise access to sophisticated investment strategies that were previously only available to institutional investors. This led me to start Wright Research, and I am proud of the success we have achieved in delivering superior investment returns to our clients.” A team of 10 professionals, Wright Research has managed wealth of nearly 50,000 clients from the time of inception. The wealth management platform has earned Rs 1.5 crore in FY22. In 2022, the startup raised $1 million in seed round funding from Orios Venture partners.

Any new tech feature that investors can look forward to benefit from Wright Research?

We are launching an execution platform for our mutual fund’s basket shortly. These baskets are thoroughly back-tested, AI driven and suitable for passive investors. We are constantly exploring new technologies and data-driven solutions to improve our investment strategies and provide better returns for our clients. In the past, we have used deep-tech, artificial intelligence, and machine learning modules to invest and implement a smart beta-based investment strategy backed by quantitative research.

What is your plan for the startup over the next few years?

Our plans for the future include doubling our team from the current 10, over the next year, to meet the growing demand for our services. We plan to target a broader range of clients, including high net worth individuals, family offices, and institutional investors. Additionally, we plan to raise funds to further develop our data-driven investment strategies and expand our platform’s capabilities. In the last funding round we received an investment of $1 million. The next round, we are looking to raise $5-10 million. In terms of revenue, we have set ambitious targets for the next financial year, and we are confident that we can achieve them with our innovative investment approach and commitment. We earned Rs 1.5 crore in FY22 and the target is to reach Rs 3 crore in FY23.

How are you placed apart from the competitors?

As an Indian investment advisor, I recognise that the wealth management space in India is becoming increasingly competitive as more players enter the market. However, we believe that our data-driven investment strategies and personalised approach to investment advice set us apart from our competitors. We cater to a diverse range of clients and are committed to delivering higher returns. While the competition is heating up in India’s wealth management space, we remain confident that our unique approach will enable us to stand out and continue to grow our business.

How is Wright Research leveraging technology?

I strongly believe that technology plays a crucial role in wealth management. At Wright, we leverage technology to extract opportunities across various assets in public markets and create data-driven portfolios for our clients. Our core strength lies in our ability to use advanced algorithms and analytics to provide personalised investment advice to each of our clients, based on their risk appetite and investment goals. By using technology to constantly monitor and analyse market trends, we are able to make informed investment decisions.

What is your experience of entering a male dominated industry?

As the founder of Wright Research, I have certainly encountered challenges as a woman entering a male-dominated industry. However, I believe that my passion for quant finance and my expertise in investment research and portfolio management have helped me overcome these challenges and establish myself as a leader in the industry. While there is still work to be done to promote gender diversity in finance, I believe that women have a unique perspective and skill set that can bring value to the industry. I hope to inspire other women to pursue careers in finance and make meaningful contributions to the field.

Have you seen a change, over the period, in women making investment call?

I have observed a gradual increase in the number of women making investment decisions in India. According to a recent survey, more than one-third of women in India invest in mutual funds and stocks. However, there is still a significant gender disparity in the investment landscape, with only one out of five investors being a woman. Additionally, a report by PGIM India Mutual Fund shows that only seven per cent of women in India invest independently through self-learning. While there is still work to be done to encourage more women to invest, I am encouraged by the progress that has been made.

Many wealth management service providers are facing pressure on fees and services, thus affecting the margin. What is your take on this?

I believe that the pressure on fees and services in the wealth management industry is a natural consequence of increased competition and the growing availability of low-cost investment solutions. However, we do not believe that this pressure necessarily means that margins will be significantly impacted. We believe that our data-driven investment strategies will enable us to do deliver value to our clients in a cost-effective manner. Additionally, we are constantly innovating and exploring new ways to optimise our operations to ensure that we remain competitive in the industry.

What are the measures you have taken to mitigate financial crime and be regulatory compliant?

India has made significant progress in recent years in developing regulations to address these issues. We have taken a proactive approach towards mitigating these risks, including the implementation of robust data security measures, conducting regular compliance audits, and investing in employee training and education. Additionally, we collaborate with other financial institutions and regulatory bodies to stay up-to-date on the latest trends and best practices in the industry and to help identify and prevent financial crime. We are committed to maintaining the highest standards of data security, regulatory compliance, and ethical conduct, and we believe that these efforts are essential for building a successful and sustainable wealth management business.

How have the current generation of investors impacted the investment strategy?

I have observed that the changing preferences of younger investors are transforming the investment landscape. We have recognised the importance of adapting our investment strategies to meet the evolving needs of this demographic. By integrating ESG factors and other key considerations into our investment strategies, we strive to deliver higher returns and attract a new generation of investors to our platform.

What is the investment trend among HNI’s?

Based on recent trends, there is significant interest in alternative investments, debt and structured products, and passive investments among High-Net-Worth Individuals (HNIs). However, there is also a growing focus on sustainable and ethical investing, which is becoming a key consideration for younger investors. In terms of managing finances and budgeting, there is a growing interest in Portfolio Management Services (PMS) and Alternative Investment Funds (AIF). Retirement planning and tax efficiency remain important segments for HNI services, although there is no clear indication that they are more promising than the other segments.

India is home to a rising number of UHNI’s. How do you see growth potential for the wealth management sector?

The expected rise in the number of High-Net-Worth Individuals (HNIs) and Ultra High Net Worth Individuals (UHNIs) presents a significant growth potential for the wealth management sector in India. As the number of wealthy individuals increases, there will be a corresponding increase in the demand for wealth management services, including investment advice, tax planning, estate planning, and more. However, to capitalise on this growth potential, wealth management firms will need to be innovative and adaptive in their approach to serving clients. This will require the use of new technologies, personalised service offerings, and a keen understanding of the evolving needs and preferences of HNIs and UHNIs.