Why Does The World Need Qfinr?

The Investment Industry is beset with a number of problems for all stakeholders.

For the Investor, the most important are the lack of

  • reliable information to look at and investigate investment opportunities,
  • Tools to look at their portfolio holistically and understand inherent risks and opportunities,
  • the trust gap between herself and the investment advisor/distributor/or the manufacturer given the inherent conflict arising from the economic model,

The 2020 covid crisis has highlighted the gaps faced by investors who were faced with significant drawdowns given the inherent risks of their portfolio.

For the small Family Office or Independent Financial Advisor, the problem is absence of reasonably priced and academically robust analytical tools to help her explain and sell her recommendations to his client.

And finally, for the senior wealth manager, the problem lies in ensuring that operational processes and compliance activities get automated so that they are time saving and easy to execute, and therefore increase bandwidth of the RMs to spend more time in revenue generating activities.

The Solution

Qfinr is an easy/intuitive app that uses reliable, industry-level data and is built using robust “best of breed” tools that will address all of the gaps identified above. It is a quantitative backbone of routines and tools on the cloud that can be accessed via a phone App or a desktop browser. It is a multi-asset ready: deposits, equities, fixed income, mutual funds and ETFs are already covered. Any asset with a public price can be added.

The Qfinr solution starts with the Investor at the center. The initial version of Qfinr, that is being Beta Tested right now has the following features.

  1. Qfinr first seeks to understand a client’s risk profile & loss avoidance behavior via a set of 17 psychometric questions and gain / loss questions.
  2. Qfinr will also like to understand the client’s goals for the investment – whether it is for a specific big-ticket purchase, say a down payment for a house or if it is for retirement. Qfinr has developed a comprehensive retirement planner that focuses on the unique cash flow forecasting technique. [This section of the platform is under development].

  3. Qfinr then asks the client to upload his existing portfolio, if one exists. The Portfolio Analyser is very feature rich. It will look into individual components of Funds and ETFs and aggregate the instruments and industry exposures to his existing Equity holdings to get to a true exposure, examine the absolute and relative volatility & return statistics for the existing portfolio w.r.t suitable benchmarks, and also compute suitability of the portfolio by comparing it with the risk profile of the individual. It looks at Daily Returns and compares to the returns of a benchmark, does Stress Tests and Forecasts Dividends.

    If the user does not have an existing portfolio, then the same analysis can be done for the proposed investments. A watchlist portfolio can be created to analyse for robustness, risk and return using the same tools as mentioned above.

    The Portfolio Analyser is designed to generate questions in the mind of the user and to examine the riskiness or return characteristics of the existing portfolio. All of Qfinr’s outputs are presented in a graphical format to make the understanding of the results intuitive.

  4. In addition, the Portfolio Analyser module is also designed to do a what-if analysis to help clients get closer to the preferred outcomes by making changes to their portfolio.
  5. Once the investor gets a better handle of her investment style, her risk tolerance levels, and the suitability of her current investments, she is then encouraged to explore fresh investment ideas and themes, discover unique market insights and deeply understand the strength and weaknesses of mutual fund schemes using our proprietary quant driven analysis models.

Qfinr is now able to record and analyse portfolios in 7 countries. The database can analyse 5000 instruments of which 1818 instruments are for the Indian market. These comprise 10 INR PSU bonds, 43 ETFs, 515 Funds and 1250 stocks.

The table shows the full extent of the assets in the database as on 15th June 2021.

 
Country/Instruments Stocks Funds ETFs Bonds Commodity Crypto Country Total
India 1256 517 43 9 1825
USA 1128 497 133 1758
Singapore 95 344 29 13 481
UK 284 62 216 562
Europe 282 15 212 509
China 70 81 151
Hong Kong 505 47 552
Global 3 1 4
Instrument Totals 3620 1435 761 22 3 1 5842

The Qfinr USP

The Qfinr Architecture has multiple advantages, with the biggest being the ability to offer a fully thought-out comprehensive quant driven “analysis and insight” solution to those markets which require such an approach, while offering a SAAS solution for Enterprise clients in other markets.

Under the SAAS offering, enterprise clients can access individual packages from the Qfinr platform and incorporate them into their own processes and platforms or can white label the entire suite of offerings as per their choice. Qfinr’s unique feature is the ability to analyze multi-geography, multi-asset, and multi-currency portfolios, and to identify risks across all these. In other words. Qfinr has been built to scale in multiple countries, from the start. Any new market can be added within a few weeks. An investor with a multi-country and multi-currency portfolio can use Qfinr to have a holistic view of their portfolio.