Risk-adjusted fund performance benchmarking and attribution software
The Opportunity
As 500+ active equity mutual fund managers compete in a market where benchmark outperformance on risk-adjusted basis is now the primary differentiator (per RBI/SEBI scrutiny), they need real-time attribution analysis to prove alpha generation, isolate factor exposure, and justify fee structures to investors. Current tools are either black-box or require manual reconciliation across multiple systems.
Market Size
₹180-220 Cr addressable market — 500+ active equity MF schemes × ₹40-50 lakh annual SaaS spend per fund house for compliance-grade attribution + performance reporting
Business Model
Subscription SaaS (per fund/per scheme/tiered by AUM) + implementation fees. Data feeds from custodians/exchanges (via APIs) + proprietary Fama-French/custom factor models. White-label option for larger AMCs.
Base subscription: ₹30-40 lakh/year per mid-size fund house (₹15-25 lakh for smaller)Data integration & onboarding: ₹5-10 lakh one-time per clientPremium analytics (factor decomposition, peer comparison): ₹8-15 lakh/year add-on
Your 30-Day Action Plan
Interview 10 fund managers and compliance heads at tier-2 AMCs; map current pain points in risk-adjusted reporting and factor attribution workflows
Partner with 1-2 custodians (CDSL, NSDL) or data aggregators to secure daily NAV/holdings feeds; validate API availability
Build wireframes for dashboard (3-factor decomposition, rolling Sharpe/Sortino, peer percentile ranks); code MVP backend using public market data
Pilot with 2 friendly fund houses (negotiate revenue-share alpha for free use); gather feedback on output accuracy and UI
Compliance & Regulatory Angle
No direct license required, but must comply with SEBI data handling norms for mutual fund data (non-public holdings data). Register as DSOP (Data Service Operator) if collecting/storing portfolio-level data. GST: 18% on SaaS services.
Ready to Act on This Opportunity?
Generate a 7-step execution plan — validate the market, build the MVP, model the financials, map the risks, and ship in 30 days.