Wealth Management with Kristal.AI
By: Nayantara Bhat
Latest in the lineup of job titles destined for eventual irrelevance is that of the investment manager. Although generally a specialized (and well-paid) role, Kristal.AI’s robo-advisory and portfolio management platform has effectively digitized the process, and could give any wealth manager a run for their money.
Kristal.AI’s platform offers a range of ‘Kristals’–portfolios of financial products curated by experts in the financial sector–for users to choose from. Along with a list of the specific assets included in the Kristal, the app provides various metrics and performance indicators along with easy-to-use buy and sell functions.
Unlike many other portfolio management products in the fintech space, Kristal’s uniqueness lies in its goal-based advisory algorithm, which comes into play when buying a portfolio. Goal types include asset preservation, income, or mortgage. The platform also offers users the opportunity to set up recurring purchases of a given Kristal, accumulating units of the portfolio in the manner of a retirement fund.
For those who believe that imitation is the sincerest form of flattery, Kristal’s in-house advisors have put together baskets based on portfolios of well-known, successful investors like Charles Akre. By studying his U.S. Securities and Exchange Commission (SEC) filings, the team recreated his portfolio, maintaining the weightage of shares in each company while shrinking the investment. This and other ‘Guru’ portfolios are rebalanced every quarter after a new SEC filings release.
Upon downloading the app, users are prompted to complete the Know Your Customer (KYC) process, which includes personal details, identification proof, and an in-person verification–or a 30-second video of one’s face. Combining the investing goal with personal data, the platform can assign a sophistication score to users’ investment capabilities. This function has the dual effect of making investment less daunting for amateurs and restricting access to more complex portfolios to prevent unwise or overconfident investing.
Currently headquartered in Singapore, Kristal.AI’s clients are spread across 22 countries globally, making it possible for more and more people in the AI generation to achieve their financial goals with confidence. –NB