Navigating the Uncharted Waters of Unaudited Return Profiles: Challenges and Solutions for India
We try to examine a conflict involving Indian regulators, platforms like Smallcase, RIAs, and Finfluencers. Our focus is on the issue of unaudited return profiles potentially misleading investors. The challenges include validating claims, the lack of rule-based approaches in backtesting, and regulatory struggles to differentiate legitimate from fraudulent claims. Transaction costs, taxation, and risk transparency are crucial considerations. We suggest stringent measures for platforms, emphasizing standardized risk terminology, and advocates unbiased media reporting and regulatory innovation to empower small investors. In conclusion, there is need for progressive solutions for a more inclusive and dynamic financial landscape.
Team Xstocks