Thanks for the A2A.
One must not suspect a platform’s longevity unless you know something specific about them (there might always be rumours in the mills). I am sure all the players in this space have a noble intention of making investing affordable.
It is true that the direct mutual fund platform space is a tough one, as there are no immediate revenues. While the consumer benefits, the platform may not immediately. This requires a fine balance between charging reasonable fee for one to survive and let customers also get a benefit.
An ability to create multiple revenue streams is crucial. Multiple cost streams seem to be the norm (swanky offices, lot of ads, etc).
Players who are funded by external investors (i.e. VCs) will be under more pressure. So they have to either raise prices (deters customers) or cut costs. With so much advertising happening, costs are clearly out of control.
When you look for a platform’s longevity, do probe the profile of the founders, their tenure in the Retail Consumer Fintech space, Technology Leadership etc. Look at their cost structure as well (do they do a lot of ads, how lean are they) as it might indicate how long they may last before they run out of steam.
Your units will be safe as the AMC and RTA housekeep them. If you wish to switch to a direct mutual fund platform, then jamawealth.com will always be there.
