1. Market Strategy & Industry Context

India’s digital-first investment landscape has seen rapid growth, yet real profitability remains elusive for most retail investors.

Retail Trading Outcomes (FY 2019–24): Self-Trading vs. Research Advisory Users

Year	Category	% Profitable	% Loss-Making	Insights
2019–20	Self-Trading Retail	12%	88%	High F&O exposure, lack of strategy
	Research Advisory Subscribers	22%	78%	Early adopters; limited reach
2020–21	Self-Trading Retail	13%	87%	Pandemic surge; speculative trading rise
	Research Advisory Subscribers	28%	72%	Better outcomes from guided investing
2021–22	Self-Trading Retail	11%	89%	New Demat boom; copy trading & unverified tips hurt performance
	Research Advisory Subscribers	31%	69%	Subscription models grew; better asset allocation observed
2022–23	Self-Trading Retail	9%	91%	Increased volatility; social media-led herd behavior
	Research Advisory Subscribers	33%	67%	High-quality research and model portfolios improved performance
2023–24	Self-Trading Retail	10.5%	89.5%	Tools improved, but psychology and lack of discipline still limit outcomes
	Research Advisory Subscribers	36%	64%	Rise of hybrid advisory platforms; consistent research-driven gains observed

Source: SEBI Annual Reports, BSE/NSE Retail Data, Industry Subscriptions, Gainwaves Internal Research Estimates.

Key Takeaways

• Retail investors who subscribe to regulated Research Advisory services consistently show 2–3X higher profitability than self-directed traders.
• Adoption of advisory services has grown post-2020 due to market volatility and increasing awareness.
• Gainwaves aims to bridge this performance gap further by offering structured, SEBI-compliant, accessible advisory models tailored to both retail and HNI segments.

2. Problem Statement:

Retail investors in India face systemic and behavioral challenges that hinder long-term wealth creation:

• Lack of Financial Literacy: Many first-time and small-ticket investors lack a foundational understanding of market structures, investment strategies, and risk management—leading to impulsive and misinformed decisions.
• Emotional Biases: Fear, greed, impatience, and overconfidence often drive irrational market actions, contributing to avoidable losses and eroding investor trust.
• Absence of Trusted Advisory: The proliferation of unregulated “tips,” misinformation on social media, and opaque brokerage practices leaves investors vulnerable to fraud and poor decisions.
• Confidence Breakdown: Consistent losses—especially among retail traders in Tier 2/3 cities—result in a loss of confidence, disengagement from markets, and growing financial insecurity.
• Language & Tech Barriers: Many digital platforms fail to cater to vernacular-speaking or tech-inexperienced users, further alienating a large investor base.

3. Our Solution: The L.E.E.E. Framework.

Gainwaves tackles these challenges through a structured, empathetic, and compliance-driven approach called the L.E.E.E. Framework – a journey from awareness to empowerment:

Learn → Evaluate → Execute → Empower

Stage	Investor Challenge	Gainwaves’ Approach
Learn (Financial Literacy & Training)	Lack of financial awareness and emotional discipline	Foundational learning modules, behavioral finance coaching, and continuous educational support
Evaluate (Market Understanding)	Exposure to misinformation and poor decision-making	SEBI-compliant research, expert insights, and robust decision-support tools for informed investing
Execute (Actionable Strategy)	Uncertainty in strategy and fear of losses	Step-by-step execution support, proven strategy templates, and real-time market simulation support.
Empower (Earnings & Confidence)	Limited access to reliable, trustworthy financial advice	Ongoing mentorship, reliable advisory support, and tools to build financial independence and confidence