PHI = Platform for Hybrid Investments

April 7, 2018

 

Any industrial sector works if it's able to provide a service or a product made at a lower cost than revenues that are collected.

Today, the financial industry has a much higher cost than the expected revenues that it will be almost certainly sure to produce for customers.

 

NOT EASY TO NOTICE

The uncertainty with which the financial results are produced, which is the uncertainty that derives from future results, combined with market volatility partly manages to mask the problem.

The financial industry seems to be ignoring this problem, because as long as it cashes in the high commissions from the unsuspecting clients that don't notice the probelm, it prospers and continus to make profits, but it's not generating the so-called "value for money", it doesn't generate value for the money that the client spends so this represents a big problems that the finnacial industry will have to face sooner or later.

 

MIFID II

The regulation is trying to highlight the high costs of the industry, which most of the time are caused by the distribution than the product itself, just think of the ETFs that have management costs of a few tens of basis points (about 0,2-0,4% annual fees).

 

ASSET ALLOCATION

But buying ETFs is not enough, it's also necessary to create a diversified portfolio based on the needs of the client, studying with it its objectives and planning how to achieve them wth the lowest risks, or rather with the greatest possible probability.

And the costs rise a lot here, often because this service is provided by financial advisors that belong to a bank or a sim with a so called "distribution network", with a pyramidal shape where the base is the contact with the customers, in the middle there are figures able to govern the multiple needs that emerge from the work of the consultants.

 

DISTRIBUTION COSTS

This model creates very high costs for the provision of the service, which must be there, because as my dear friend prof. Bertelli says: "the performance of our portfolios isn't made by markets but by our behavior", so the work of financial advisors is really important to govern the client's emotions and  preventing them from making mistakes that could cost more than the commissions for the consultant.

 

EXPECTED RETURNS

Nonetheless, with interest rates at lows, with stock exchanges peaking in the last month, it's unlikely to achieve high returns for the next 3-5 years from traditional financial markets.

 

PHI

This is why we decided to create the first hybrid investment platform (PHI) which allows the investors to buy traditional investment tools and financial instruments for the crypto world.

Not direct crypto currencies investments, but investments in professional tools that invest in crypto.

 

ALTERNATIVE FUNDS

For months I have been following many conferences on the Blockchain and I met many Hedge fund managers with really interesting crypto strategies, so it's better to rely on professionals than looking for the do-it-yourself in this sector (and the DIY creates damage on teh stock market with a 15% volatility per year, imagine that on a market with 75% annualized volatility).

 

NOT ONLY ROBO

But creating a platform that allows investing in the best products is not enough, as explained in  Why the future is hybrid because investing in the best product in the worst moment leads to losses, so it's essential to be supported by professionals.

This is why the platform we are creating is both hybrid in investments and hybrid as a platform, because in reality the human relationship with the manager or the consultant is fundamental.

 

HUMAN COMPONENT

So a fundamental part of the platform will be the interaction between the client and the consultant or the asset manager, in order to not only provide a service at a lower cost (thanks to digitization and PHI Tokens) but nevertheless an equal or greater quality of support both in the good and bad moments of financial markets.

 

VIDEOCALLS

The platform will allow you to connect customers with consultants or managers through video calls, to allow them to have a remote support, at a distance, without expensive (both in economic and time terms) and often useless transfers, once the relationship is well established.

 

COMPETITION

Customers, for their part, will have access to an open platform where they can find more investment solutions based on their needs and objectives, allowing them to communicate with the consultant (if they already have one) or to select the best on the platform analyzing various performance risk indicators that can be monitored with our platform.

 

The platform will use Blockchain for a better management of customer data, in a transparent and secure, but primarily truly unchangeable, guarantee required by rules but never really applied because there was no technology that allowed it in a distributed way.

Stay Tuned

DB

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