Jitta, a Bangkok-based fintech startup, is getting ready to launch a private fund service for HNWIs in the country, in what would be a first for the Thai market.
Slated for release in the second quarter of 2019, the new service - Jitta Wealth - will invest in stocks through the separately managed accounts of customers. Clients are required to have at least 1 million baht ($31,566) in investable assets.
CEO Trawut Luangsomboon said the accounts will be managed by Jitta Wealth Asset Management. The firm has applied for a licence from the Securities and Exchange Commission of Thailand, he told Citywire Asia,
Founded in 2014, Jitta has developed a proprietary algorithm that helps to identify investment options on a range of stock markets that include the US, Thailand and other parts of Asia. The company started out offering a freemium intelligence product that allowed professional, or at least serious, investors to tap its technology to find undervalued stocks or investments that are poised for growth.
Jitta Wealth is to offer a passive investment option to users who have do not have the time or confidence to invest by themselves. Instead, they put money into Jitta Wealth and let the company bring in a return. Jitta's pricing means it is incentivized to do just that. Customers will be charged a 0.5% management fee and, at the end of the year, Jitta will take a 10% cut of their profit.
The company is targeting Thailand first, but its stock analysis product — which covers 16 countries — is likely to be expanded into new markets this year, with India and Singapore on the horizon
Jitta made headlines in February for raising $6.5m in a pre-series A funding round led by Beacon VC, a corporate venture capital arm of Thailand's Kasikornbank.