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The 1% Club Becomes First Finfluencer-Led Company to Get SEBI RIA License – A New Era for Financial Advisory in India

4 Mins read

In a groundbreaking move, The 1% Club, a financial advisory startup founded by social media sensation Sharan Hegde, has earned the prestigious SEBI Registered Investment Adviser (RIA) license. This makes the 1% Club the first finfluencer-led company in India to be officially recognized by the Securities and Exchange Board of India (SEBI) and allowed to offer regulated financial advisory services.

Sharan Hegde and the Rise of Finfluencers in Finance

Sharan Hegde, known for simplifying complex personal finance topics on social media, has turned his online influence into a full-fledged business. This development marks a significant moment in India’s financial landscape, as more people turn to trusted online voices for financial advice. Hegde’s success story shows how influencers can evolve into serious, regulated service providers – a trend that could shape the future of wealth management.

The achievement is a big deal, as it highlights how financial influencers are now part of the mainstream and can offer services that are legally compliant with India’s financial regulations. But the road to the SEBI license was no easy feat – it took the 1% Club six months of rigorous review by top legal and compliance experts before it was granted approval.

What Does This SEBI RIA License Mean for The 1% Club?

The SEBI RIA license opens the door for The 1% Club to offer personalized, one-on-one financial planning services to its growing base of members. These services include goal planning, portfolio reviews, risk management, and more. And since SEBI closely monitors the advisory sector, it ensures that the advice given to clients is not only trustworthy but also transparent and regulated.

With this license in hand, Hegde is excited about the future. He believes it marks the beginning of a financial advisory revolution where the role of finfluencers is no longer limited to social media posts but extends to genuine wealth management solutions. Hegde envisions more people accessing expert financial guidance, especially in India’s vast middle class, which is often underserved by traditional advisory services.

Why This is a Big Deal for India’s Middle Class

India faces a major shortage of certified financial planners. According to SEBI’s chairman, the country needs about one million financial planners, but currently, there are only about 1,300 in total. This gap creates a huge opportunity for new models like the 1% Club to step in and provide accessible financial advice to millions of people who need it.

The middle class, which forms the backbone of the Indian economy, is often left out when it comes to receiving professional, personalized financial advice. But with the 1% Club’s expansion into the market, that’s about to change. Hegde plans to make high-quality financial planning available to this segment, helping them plan better for their future, manage their wealth, and make smarter investment decisions.

The 1% Club’s Personal CFO Division: A Game Changer

Under the new SEBI RIA license, the Personal CFO division of The 1% Club will offer tailored financial services to individuals. This includes portfolio reviews, risk management, and goal-based planning. With an advisory team of 40 experts currently managing assets worth Rs 750 crore, the 1% Club is on a mission to expand its reach across major Indian cities.

Raghav Gupta, co-founder of the 1% Club, emphasizes that this move is a commitment to transparency and investor protection. The SEBI license ensures that the company acts in the best interest of its clients, helping them make informed decisions in an ever-changing market.

“Getting the SEBI RIA license strengthens our commitment to acting in the best interest of investors. It’s a big step towards making financial planning impactful and accessible for India’s middle class,” said Gupta.

What’s Next for The 1% Club?

The 1% Club isn’t stopping here. Hegde has big plans for the future, which include launching more SEBI-approved financial products like thematic portfolios, stock recommendations, and high-yield debt solutions. This would broaden the range of services available to members and help them build diversified portfolios that suit their financial goals.

Hegde also expressed interest in forming partnerships with established wealth management firms to offer an even wider range of investment options. This could include products that help members navigate the stock market, select the best investment options, and build wealth over time.

“We are committed to building trust, credibility, and a legacy for India’s middle class. This is just the beginning; our vision includes acquiring more SEBI licenses to offer robust investment products, such as stock recommendations and high-yielding debt solutions,” Hegde added.

The 1% Club’s Growing Popularity and Investor Confidence

Since its founding, The 1% Club has grown rapidly, gaining popularity not just for its financial expertise but also for its innovative approach to wealth management. In October 2023, the company raised Rs 10 crore in funding from major investors like Nikhil Kamath, co-founder of Zerodha, and Abhijeet Pai from the Puzzolana Group. This funding will help the startup scale its operations, expand its team, and reach even more people across India.

With its growing team, strong financial backing, and SEBI RIA license, The 1% Club is poised to become a leader in the financial advisory space, especially among India’s middle class, which has long been neglected by traditional financial institutions.

Conclusion: A New Chapter in Wealth Management

The 1% Club’s journey marks a new era for finfluencers in India, as more and more influencers enter the financial advisory space. With the SEBI RIA license, Sharan Hegde and his team are setting a new standard for regulated financial services, bringing trusted, accessible advice to millions of people who need it most.

The company’s future looks bright as it expands its offerings and strives to make financial planning a mainstream service for everyone, from young professionals to seasoned investors.


About author
I’m Aparna Sahu , an author and journalist with over five years of experience in the startup ecosystem. I specialize in crafting stories about entrepreneurship and innovation, drawing on my deep understanding of the startup world to highlight the journeys of visionary leaders and trailblazers. My work aims to reveal both the challenges and triumphs of building successful ventures, offering insights that inspire and inform. Outside of writing, I enjoy personal interest or hobby, which helps me bring fresh perspectives to my storytelling.
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