Mutual funds and e-wallets have tied up for investments in mutual funds via e-wallets. The step aims to channelize more and more household savings into the capital markets as well as boost digital payments in the industry.
Investors can invest upto a maximum of Rs. 50000 per mutual fund in a financial year. And the redemptions per se such investments can be made only in the bank account of the unit holder. To invest in MF units via e-wallet, an individual registered with an e-wallet can make use of his e-wallet balance for subscribing to a particular mutual fund scheme.
Here though the investor has to ensure that the e-wallet is loaded using cash or net banking or debit card as e-wallet balance loaded using credit card, promotional schemes and cash back offers does not qualifies for subscribing to mutual fund schemes.
Further, Securities Exchange Board of India (SEBI) does not allow e-wallet entities to incentivize investors with any reward for purchasing mutual funds scheme through them.
SEBI also stated that the limit of Rs 50,000 would be an umbrella limit for investment by an investor through e-wallet and/or cash, per mutual fund.