Robo-Advisory Services and Investment Portfolio Management at ICICI Securities Ltd (International Journal of AI Electronics and Nexus Energy)

Summary

• Robo-advisory platform fees range from 0.15% to 0.25%, compared to 1.2% to 2.2% under traditional wealth managers.p.1
• Assets Under Management expanded to 4,100 Crores supporting 280,000 active portfolios by 2025.p.1
• The five-year project lifecycle yields a Net Present Value of 284.5 Crores and an Internal Rate of Return of 38.6%.p.1
• The platform required an initial capital expenditure of 45 Crores in 2020 and annual operating expenses scaling to 48 Crores in 2025.p.6
• Automated daily rebalancing maintained stable monthly annualized returns between 12.4% and 15.0% in 2025.p.6

Key insights

1. Conservative portfolios hold 65% in debt and 10% in cash, whereas aggressive profiles allocate 85% to equity.p.5
2. Active portfolios grew from 12,000 in 2021 to 280,000 by 2025, alongside an AUM increase from ₹150 Crores to ₹4,100 Crores.p.6
3. Balanced robo-advisory returns remained stable between 12.4% and 15.0%, while traditional retail funds experienced volatility between 7.8% and 17.5%.p.6
4. Under a combined stress scenario of a 20% OpEx increase and 15% lower benefits, the project maintains a positive Net Present Value of 176.9 Crores and an IRR of 26.4%.p.7
5. The implementation of a machine learning risk engine reduced false-positive risk alerts from 7.5:1 to 1.3:1.p.7
6. Average database evaluation time was kept under 50 milliseconds to prevent core banking system lag.p.7