1. Financial Advisory Services
Some of the most lucrative financial business concepts in India are financial advisory services as more people get to be aware of personal finance. With a greater number of Indians exploring their plans to save and smartly invest, they require the advice of experts to plan their lives after retirement, investment plans, tax savings, and budgeting. The capital needed to open a financial consultancy is not that much, especially when you have a background in the field of finance. You can even be an independent consultant and start your own office. Getting a certification such as CFP (Certified Financial Planner) or registered with SEBI would be a certification that would add credibility to your profile. One can bill consultation and manage client portfolios on a percentage commission basis or package based on different income brackets.
2. Loan and Credit Consultancy
The loan market in India keeps expanding fast as more people and small firms aim at getting finance. A loan and credit advisor aids the borrower in determining the most attractive loans, either in the form of a home loan, personal loan, car loan, or business loan. Your business model can be on a commission basis, where you would get payouts on the disbursement of loans by banks and NBFCs. You help in the collection of documents, verification of creditworthiness, and expeditious approvals. This business can be successful even in tier-2 towns if the right partnerships and online presence are established.
3. Distribution of Mutual Fund
Distribution of mutual funds has come up as a roaring business with the increasing popularity of SIPs (Systematic Investment Plans). Anyone can become a distributor of mutual funds by clearing the NISM VA certification examination and registering themselves with AMFI. As a distributor, your commissions on an asset management company are the trial commission that is earned on each investment by your client. This gives you repeated revenue with time and with a proper financial education plan, you will be able to get many customers. You may work as a freelancer or open your portal as an adviser to reach more people.
4. Insurance Advisory Services
In India, insurance is an evergreen business, and with the rising awareness about life, health, and term insurance, the business has increased even further. When you become a licensed insurance agent through IRDAI, you get an opportunity to sell various types of policy. Your clients receive advice on policy selection, claim filing, and renewals. Because agents get their payments in advance and newer commissions renewed, this business can be extremely lucrative. You may be an independent worker or an agent of several insurance companies to provide a greater variety of services.
5. Bookkeeping and Accounting Services
Start-up firms, small companies, and freelancers rarely have their own accountants. Another way to earn a consistent income is to provide bookkeeping and accounting services, including GST return filing, Payroll management, invoicing, and income tax return filing. There are very few capital requirements, including the use of cloud accounting solutions and online platforms. The demand for these services is expected to increase in the future, as GST regulations become more complex and a clear ruling is needed to ensure compliance.
6. Product Offering in Fintech
It is also a good idea to develop a finance-oriented application, especially when you have a technology background. UPI, digital wallets, and the online investment sphere are key boosters of the Indian fintech concept, driven by their rapid growth. You may develop solutions in the area of expense tracking, peer-to-peer lending, micro-investing, or digital insurance. These revenue streams may come in the form of subscriptions, transaction fees, or third-party data analytics. An innovative and UX-supported good idea could secure the funds of an investor and grow fast.
7. Tax Consultancy Services
All businessmen and individuals have to pay taxes, and more frequently than not, they need help to do so properly. The role of tax consultants in taxation includes preparing income tax returns, assisting with GST registration and filing, providing audit reports, and offering tax-saving advice, among others. Following the introduction of e-filing and digital compliance mechanisms, this industry can be largely conducted online. It can be initiated at an individual level as a recognized tax consultant and grow to a full-service agency with compliance packages for businesses in different industries.
8. Online Stock Market Training
The stock market being a topic of high interest among the Indians (thousands of new Demat accounts every month), the demand for stock market education is enormous. You will be able to open the online education platform where you provide classes on equity investment, technical analysis, derivatives and mutual funds. The classes may be provided as pre-recorded lectures, webinars, or mentorship programs. The income is derived in the form of course subscriptions or fees. You, too, can use YouTube to develop goodwill and organic lead generation.
9. Home Loan Advisory
Many families in urban India rely on home loans to purchase real estate. A mortgage agent assists this type of customer in knowing the right lender, preparing the documentation, and getting quicker approvals. Banks and NBFCs will be able to offer you commission and can charge clients small fees. With crooks, it is regular business and can be set up by entering into a tie-up with the builders or real estate brokers. With the increase in the cost of property and the detailed approval procedures, your service can be very useful to the buyers of properties.
10. Lending Club
P2P lending is one of the business sectors which is technology-empowered and the financing involved enables people to lend out to other people through bypassing the traditional banking system. RBI has controlled this industry so as to bring in transparency and credibility. You own a platform that lets the interactions between the borrowers and lenders and receive service fees. The company will also need a good technical system and understanding of laws to be compliant. Nevertheless, the platform has the potential to provide a scalable business model with high returns as soon as it becomes operational.
Frequently Asked Questions
1. Do I need a finance degree to start a finance business?’
No, most finance companies need only certifications such as NISM, IRDA, or tax filing courses.
2. What is the most profitable finance business in India?
The most lucrative ones would be the mutual fund distribution, loan consultancy, etc, because of the reciprocating commissions.
3. Is the distribution of mutual funds a full-time business?
Yes, it can be viable as a full-time business on a consistent basis, provided there is adequate client building and the use of SIPs.
4. Do I need to have an office?
Not necessarily. Numerous finance-related enterprises, such as tax advice or advisory can be done in the home.
5. What is the amount of capital required to start a fintech?
Depending on the technology needs and the requirement of compliance, Fintech tipping startups might require 10-25Lakhs and higher.
