The Mool Mantra

Traditionally, India has been an economy of savers.

Do you remember the feeling of visiting a beloved restaurant, waving away the menu, and ordering that one reliable dish? For the average Indian, that dish was almost invariably fixed deposits. Life was all ‘Thanda matlab Coca-Cola’ and ‘Investment matlab fixed deposits’.

Let’s look at some facts to go with anecdotal evidence. Check out this pie chart:

As expected, money parked in banks collectively amounts to about 56%, while cash is around 13 %. In sum, about 70% of a household’s financial assets are in instruments that do little to uplift them. Meanwhile, the pool of money that is expected to:

- grow your wealth

- protect you from inflation

- support your retirement

…comprises only ~7%.

But hey, 7% isn’t so bad, right?

What you see above covers just a fraction of an overall household’s assets — financial assets. A household’s assets also includes physical assets like property, consumer durables, and (an Indian’s beloved) gold.

A report by RBI in 2017 states “In India, the average household holds 77% of its total assets in real estate, 7% in other durable goods (such as transportation vehicles, livestock and poultry, and machinery), 11% in gold and the residual 5% in financial assets”. A back-of-the-napkin calculation means that even if financial assets has reached 10%, our pool of money comprises just 0.7% of our total assets. You’ve also probably noticed that gold weighs as heavily on a household’s assets as on our brides.

So… Mool to the rescue?

You heard it here first. Part one of the solution lies in making investing simple. We want to help make investing a habit, an easy fix rather than a tedious task. Imagine if every time you did one of those boring adulting tasks, like paying a bill, some of your money got invested? Or if you could just set a limit as to how much you want to keep in your bank account at any point and anything above that gets invested? Over time, Mool helps you realise how excess money in your bank account leads to erosion of wealth. We’ll then nudge you towards making better use of it.

Part two involves figuring out where your money goes. A poor allocation across asset classes can do more harm than good in the long run. It doesn’t matter how big or small your investment, Mool makes it work for you. No particular goal in mind? Just want to stash some money aside for the near future? No problem, we’ve got you.

In essence, the same pool of money, but bigger returns. How about that?

But solving the investment piece alone isn’t enough to fix a person’s relationship with money. It’s like Eid without a Salman Khan movie or pani poori without a sookha poori at the end. This is where insurance and credit come in.

The component of insurance in the above pie chart of 24% is misleading. Insurance penetration in India is ~3.8% with life insurance penetration at 2.8% and non-life at 0.9%. Despite the existence of government-sponsored schemes, more than 80% of Indians are not covered by any form of health insurance. Our goal is to ensure every Mool customer is covered for the right amount, at all times.

On the credit front, we will ensure our users get the best rate of interest based on their profile. At the same time, you can wave goodbye to predatory lending practices. Individuals’ access credit during times of need, and making it harder to repay doesn’t make things any better.

The best bit? None of these pieces work alone. With Mool, they blend intelligently to make the whole experience meaningful.

If you think your money can use a boost, check us out here and we’ll help you complete your financial jigsaw in an intelligent, seamless, and meaningful way.