3325: D-Street Talk | Robinhood rush likely to go down, but big shift happening towards rule-based trading: Kanika Agarrwal of Upside AI

The Robinhood rush which was seen in FY21 is likely to go down in the next financial year but there is a big shift seen in the rule-based trading which is likely to gain popularity in the next 10 years,  Kanika Agarrwal (Co-founder and Chief Investment Officer) at Upside AI said in the D-Street Talk podcast with Moneycontrol.

Over 10 million new Demat accounts were opened in FY21 and a similar trend was seen in the US. “As we move into FY21 and people start going back to their day jobs, participation of ‘Robinhood investors’ – a wonderful term which got coined for new-age investors, will go down. The trend is already visible in the US,” says Agarrwal.

The conversation which Upside AI had with the clients suggests they are looking for more sustainable solutions to manage the money. Like any MF, 1-2% is charged with the AUM as an advisory fee in terms of cost.

Agarrwal highlighted that the big shift in the trend is going to happen in the next 10 years as rule-based systems in trading, investments will become more popular.

“The trend is already visible in China as well as the US. The quant AUM in China rose to $100 bn doubled from 2019. In the US, we have value quant shops that are using quant-based models to do value investing. The AUM is roughly $100-200 bn,” explains Agarrwal.

(Tune in to the podcast for more)

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