Auto invest my money!

Like https://www.acorns.com/ why doesn’t a bank auto-invest my money in a liquid fund.

How much amount will be deducted can be:

  • Defined by me (similar to SIP / RD)
  • Round offs
  • Cashbacks

There is a feature in SBI account - liquid FD or something, which on every set date removes money above a certain threshold and makes an FD out of it. This FD when I require money auto breaks.

@cpk suggested this idea, moving it here to discuss further

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Hey everyone,
Talking about auto investing, An automatic investment plan (AIP) would be perfect . Considering an investment program that allows us to contribute money to an investment account at regular intervals to be invested in a pre-set strategy or portfolio. For which the funds can be automatically deducted from our personal accounts.

Also, in the fin-tech market, many new options for automated investing are also being introduced called robo-advisors. Acorns is one of the most prime examples who use it. Robo advisors use modern portfolio theory which optimizes the investments for maximum returns with a given risk tolerance. If we could set up our risk tolerance and the amount that we want to invest from the app, it would make the users more aware of their as well as the market’s finance.

3 Likes

I am Jupiter’s WhatsApp community

@talinjb @deepakmalani @noops24 and Ashutosh have come up with a very similar idea, in our very initial discussions. You can find the details of their idea on our

@cpk @Devesh_Gehi More ideas we can add there?

Cash and investment have their own purpose. If you put in liquid funds whose redemption is T+1, making urgent payment could be an issue and liquid fund returns are in the range of 4-6% while SB yields like 3.5-6% in India. Further, recently NAV of several liquid funds actually fell, giving returns last month, although it’s rare. Instead, you can thought of parking it in overnight funds. But why would you do that, you are a bank? The treasury has it’s own way of deploying- Asset-Liability Management…

3 Likes

Auto invest my money is okay, but that investment should be in a wide range of products to manage with the current inflation rate.

Currently I am looking for ideas of a product where when people invest money, their money should get increased atleast 50 percent or even twice. This percentage helps any individual to invest in a way that their increased investments manages and compares to the rising inflation rate from time to time. Happy to work with anyone in this forum, to give this idea to live, given the impact it could have to lots of people.

contrarian view - there are bank accounts which have higher savings interest rate. Some nudge like: You have ICICI bank account with MAB of 10k, why not transfer x amount to IDFC First Bank account of yours which would pay you 7%.

Here data science can come in picture - i) as per your last 5 months spends; generally you have savings of x amount during range of x-y period; why not transfer your x amount during that time in overnight funds. ii) Extended weekend is round the corner for 5 days, why not let your money work hard in those 5 days; you can invest your funds in overnight funds.

1 Like

What we can have is automated cashflow management system. If there is intelligence which can study my periodic cashflows to determine the periods within a month/quarter/year where I am predicted to have surplus, then the system should actively scout for opportunities to invest in.

The system should need the following inputs

  • Buffer cash that should be mandatorily kept in my account
  • Risk profile - where I want my money invested

Lets say I get my monthly income is 1 Lac and my monthly spend is 50K. If most of spending happens in a periodic manner with bumps in start and end of the month.
Then the system can invest lets say 30% of 50K in low risk instruments and the remaining balance - buffer as per the risk profile of the investor at the end of the month.

This is a form of dynamic investment which ensure the ebbs and flows of cashflow to the user doesn’t prevent from the user indulging in systemic investment which is optimisation

3 Likes

Agree with the point about data science.

I’d choose

Assisted actions >> Automation with less transparency

any day!

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