Paytm Money, the wholly-owned set up of One97 Communications, has come up with an app to sell mutual funds. The company has entered into partnership with as many as 25 asset management companies to sell direct plans of mutual funds. And as per the senior executive plans to sell mutual fund investment product to as many as 25 million people in the next 3-5 years time.
The company will be SIPs for as low as Rs. 100 as it targets retail investor class from Tier2-3 cities. As per reports, some 8.5 lakh individuals have already registered on the company's platform and these are primarily from beyond the top 15 cities.
The parent company has plans to invest a sum of $10 million into Paytm Money by the end of the current fiscal year 2018-19 for the various areas that include product development, designing, engineering, technology etc.
Last week, Berkshire Hathaways has also bought a stake in Paytm for an undisclosed amount to be now included in the list of company's key stakeholders' that include Ant Financial, SoftBank, Alibaba and SAIF Partners.
The company said that for buying mutual fund from the platform, the customers will not need to lock their funds in the company's wallet and instead can buying them directly using their bank account.