Retail investors who entered the market during the pandemic are increasingly turning to professional firms to fix fragmented and difficult-to-manage portfolios. Driven by market volatility and the need for better retirement planning, this shift marks a significant change from the initial DIY trading boom.
A noticeable trend is emerging in the Indian stock market as retail investors, who began their investment journey during the pandemic, shift away from do-it-yourself (DIY) trading. Many of these investors are now struggling with bloated and fragmented portfolios that contain too many individual stocks, making it difficult to track performance or make timely exit decisions. As market volatility continues, these investors are increasingly seeking professional oversight to consolidate their holdings.
Wealth management firms like Dezerv are playing a key role in this transition. By using tech-enabled platforms, these firms aim to automate tasks like portfolio analytics and trade execution. This allows them to manage a higher number of clients compared to traditional, manual-heavy wealth management models. The firm, which manages assets worth approximately ₹20,000 crore, is using these digital tools to help investors identify underperforming assets and consolidate their investments into more structured, manageable formats.
The shift is also being driven by a broader realization about long-term financial security. Industry experts point out that retirement planning has become more complex due to rising costs. Specifically, healthcare inflation in India is running at roughly 15 percent, which means the retirement goals set by many investors a few years ago may no longer be enough. Financial professionals are now urging investors to start planning for retirement much earlier in their careers to account for both longer lifespans and the higher cost of living.
However, moving from DIY trading to professional wealth management is not without its risks. Investors must consider the cost factor, as professional services like Portfolio Management Services (PMS) often come with management fees, typically ranging from 1 to 2 percent plus taxes, which can impact net returns. Additionally, investors should understand that professional management does not guarantee profit. For example, some specialized strategies, such as Dezerv's previous 'Momentum' strategy, experienced significant losses during the 2024-25 period. This highlights the importance of transparency and careful review of any strategy before committing capital.
For investors considering this move, the most important next steps involve reviewing the fee structure and the track record of the chosen service. It is essential to understand the underlying strategy, how often the portfolio is rebalanced, and the specific risks associated with the chosen investment products. Monitoring these factors helps ensure that professional management actually adds value beyond what an investor could achieve on their own.