## INTRODUCTION TO ALGOTRIG --- ## What are we making - ALGOTRIG **ALGOTRIG** - Algorithmic Triggers for Capital Market We will build a platform for: - Create Algorithms - Backtest Algorithms based on historic data - Deploy Algorithms to get Triggers for future events and to buy and sell based on these triggers - Marketplace of Algorithms Our initial focus is to capture opportunities in Mutual Fund market and then gradually expand the horizon by adding Stocks, Bonds (and other tradable Financial Instruments), Commodities and Real-Estate to the list of underlying assets --- ## Why are we making ALGOTRIG ##### PASSIVE Investors This product is for **PASSIVE investors** who want to optimize their **ROI -** ***Return On Investment*** by capturing the **<u>volatility</u>** in the market. ##### V-Shaped recovery Recently we saw a **V-shaped recovery** in the market in the **year 2020** because of the **pandemic** and similar kind of massive dips in the markets have been observed in past few decades. ##### Emotions over Discipline When such an event happens, even though the investor has the confidence in the market they **miss out** on investing at dips because the **emotions overwhelms the decisions** and the investor misses out on taking the advantage of buying at dips ## Why Now 1. The recent V-Shaped recovery has created a lot of buzz in the finance industry to start looking at the **Asset-Allocation** and **Portfolio-Rebalancing** aspects of investments 2. And there are *NOT* many tools available in the market which can assist the investor to follow a disciplined pattern of investing and managing the investments ## Market Size ##### Market Cap and contribution from Mutual Fund industry - Indian Stock market as a **Market Cap** of approximately **USD 3 Trillion** as of now, out of which exposure through Equity-based mutual funds is only about **USD 150 Billion** which is only **5% of the total market Cap**. - There is a **huge gap of 95%** which can be reduced by providing the direct equity investors a tool which can give them the similar growth opportunities via algorithmic investment into mutual funds ##### Exposure to Capital Market in INDIA - **Only 4%** of total **wealth** saved by Indians go towards **Equities** and similar instrument and that is because of lack of confidence and education of these markets - With proper education and efforts from the industry itself there is a **huge potential** to grow from **4% to 26-40%** as in other developed countries ## Competition ##### Products offering Algorithmic investment options - TradeTron - Streak (Zerodha) - Finpeg - 5nance Algrow ##### Products offering Mutual Funds investment options over internet - Groww - Coin (Zerodha) - FundsIndia - Scripbox ## Business Model - Revenue Model ##### B2B Business to Business for Mutual Fund Distributors, RIAs and CFPs - Fixed subscribtion based model - AUA - Asset Under Administration, based model - Commission based model ##### B2C Business to Consumer - Fixed subscribtion based model - AUA - Asset Under Administration, based model - Commission based model For B2B and B2C both the revenue models are similar but the way of execution will be slightly different as per the applicability