Paytm Set To Offer Mutual Funds Via A New App

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    Paytm via its new wealth management arm Paytm Money owned by One97 Communications is set to foray in the business of mutual fund distribution. The company will begin with the distribution by the end of April with the launch of its digital platform.

    Paytm Set To Offer Mutual Funds Via A New App

    The apps on both the Android and iOS platform will enable investors buy mutual funds from 12 leading AMCs in the country. The company will then slowly expand its mutual fund basket to include schemes from 25 fund houses by August.

    Paytm Money is an investment adviser registered with the SEBI. The company will only sell direct plans that carry lower expense ratios without commission charges due to the distributor. So, the new app would primarily cater to investors who have the acumen to invest in mutual funds directly without the help of distributors.

    Chief executive of Paytm Money said that "Investments via Paytm Money will be free from any commissions or fees or any hidden charges until a certain threshold; beyond this investment limit, Paytm Money is considering options to include a very small transaction or subscription fee for its investment platform".

    Despite the fast gaining traction for systematic investment plans or SIPs among young investor class, only 28% of individual investors' assets in mutual funds come from "B15", or "beyond the top 15", towns, as of February as per (AMFI) Association of Mutual Funds of India.

    The payment wallet entity will harness this opportunity by increasing awareness about the investment product and easing its purchase.

    Industry experts expect Paytm to expand the mutual funds market.

    Goodreturns.in

    Story first published: Friday, April 6, 2018, 10:59 [IST]
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