How JARVIS leverages AI to provide hyper-personalised stock portfolios for DIY investors at an affordable price

JARVIS Invest, India’s first Artificial Intelligence (AI) based stock advisory startup designed exclusively for the retail investor, aims to be a partner for Indians on their journey to wealth creation in the Indian stock market.

How JARVIS leverages AI to provide hyper-personalised stock portfolios for DIY investors at an affordable price

Monday January 09, 2023,

5 min Read

AI is transforming lives today - and how! The technology is responsible for medical research breakthroughs, climate research and self-driving cars - to mention a few.

One of AI’s most interesting use cases today is its role in the investing landscape. Experts today consider AI to be a game changer for the stock market. The technology is not only helping seasoned investors and fund houses but also first-time and Do-It-Yourself (DIY) investors - which India has plenty of.

The rise of the Indian Investor

The number of people participating in the equity market in India has grown exponentially. Prior to the pandemic (March 2020), the number of DEMAT accounts in India stood at around 4.09 crore. In October 2022, that count increased to 10.4 crores - a remarkable 2x+ growth figure.

The number of demat accounts registered a gain of 41 percent from October last year. This astounding increase in the number of demat accounts is being attributed to the increase in smartphone usage, easier digital onboarding of customers, and a desire to explore wealth creation assets beyond the traditional bank offerings.

The need for hand holding the DIY investor, and the role of JARVIS

While the numbers are certainly impressive, there is a marked gap in financial literacy for the average investor - which has definitely increased, but perhaps not at the same pace. Hence, thousands of new traders and investors are entering unknown territory - unprepared.

Taking into account the growing numbers of trading accounts and the financial literacy gap, JARVIS understood that it was more essential than ever that it introduce technology to investors.

The first question every investor needs to ask is: Is investing something I am good at? If not, can I learn it on my own and excel at it? If the answer to these questions is NO, investors must not waste time and explore technology for investing as they use it in other areas of life, says Sumit Chanda, Founder and CEO, Jarvis Invest.

How JARVIS Invest creates hyper-personalised investing at scale

An AI-based tool like JARVIS Invest is quickly winning favour with India's DIY investors, as it takes care of everything related to equity investment while also addressing the changing investor expectations from the market. Most importantly, it addresses the biggest challenges new DIY investors have, i.e. picking quality stocks as per one's risk profile and creating a portfolio, personal biases, and even dealing with investor disenchantment over market performance during volatile phases.

JARVIS Invest, which happens to be India’s first AI-based stock advisory startup solves these challenges by leveraging its proprietary highly intelligent AI-based portfolio management tool that offers its investors exceptional returns along with a unique risk management system capacity for real-time rebalancing, during volatile periods. And yet its affordable to retail investors as none can avail Jarvis’ service at just Rs. 399 a month with the basic plan,

To do this, JARVIS uses a proprietary risk management system that takes into consideration more than 1.2 crore local and global data points and monitors investments 24×7. These data points recommend the best stocks for every possible customer portfolio combination thereby providing a personalized portfolio to every individual investor as per their risk appetite. This is nearly impossible for a human driven advisory service that offers model portfolios.

The four key issues we wanted to tackle were the lack of access to personalised advisory, the influence of human emotions and biases, the absence of a risk management system, and a one size fits all (model portfolio) approach, says Sumit Chanda, Founder and CEO, JARVIS Invest, talking about the JARVIS approach.

The system has been working on a reward/penalty mechanism and retraining LIVE for more than four years and back tested for another four – giving it an edge over any other system currently available in the country.

The JARVIS system even understands documents like policy papers and global news and has the capacity to deduce relevant insights for the portfolios. Jarvis plans to introduce Jarvis Protect and One Stock, two other products that will target various investor demographics, using the same technology. While the Jarvis Protect is meant to help investors decide when to book profits and cut losses on stocks in their current portfolio, the latter is aimed at investors who want to generate returns in 45 to 60 days.

In fact, JARVIS’ AI is reportedly so powerful and intelligent today, that it runs faster than the creators. Its risk management system even predicted the March 2020 and January 2022 crashes well in-time and helped its investors from the huge loss

JARVIS Invest’s success and rising popularity is also evident from the fact that it has grown to onboard more than 75,000 clients across 800 partners as of November 2022. The registered client base has also grown multifold from about 500 in 2020 to more than 75,000 now. The assets under advisory (AUA) have crossed INR 100 crore as of April 2022 from INR 13.7 lakh in 2019-20, a rise of 730x in two years.

JARVIS partners now extend across Zerodha, Groww, HDFC securities, Mastertrust, Kotak Securities, Upstox, IIFL securities among others.