Paytm to sell Direct Mutual Fund plans?
India’s first online recharge platform Paytm has finally managed the permission of Security Exchange Board of India(SEBI) to act as Registered Investment Advisor (RIA)and to sell direct online Mutual Fund plans through its wholly owned subsidiary company Paytm Money.With the SEBI’s nod, Paytm Money has started its Mutual Funds services across the country from April 2018 and Investment Advisory and Wealth Management services later on.It has currently collaborated with around 12 AMCs and will add more 30 to 35 AMCs in the coming 12 months.
Paytm’s this effort is really going to benefit mutual funds investors financially.Direct mutual fund plans means there is no intermediaries between the investors and AMCs.As a result of this investors would be able to buy and sell units of Mutual Funds using the platforms of Paytm Money without shedding extra penny.Buying direct mutual funds units leads to less expense ratio for the mutual fund plan itself and which translates more return for the investors in the long run. However, direct mutual funds plans do not make any impact on the investors portfolio for the short term investment.
Previously, Paytm has been able to grab the RBI’s permission to act as Payment Bank (E wallet) service provider which has increased its customer base significantly.Moreover, grabbing this new permission from SEBI is just showing that how serious Paytm is regarding its entry in the financial service sector in India.Currently, Paytm Money is integrating with different statutory compliance guidelines of SEBI for KYC and that of the different Asset Management Companies.This is needless to say that Paytm is gaining its momentum gradually with different services like Paytm Mall, Paytm Digital Gold,Paytm Payments Bank.
Best Mutual Fund Investment for 2018
Final Word
Paytm is confident enough with this new role and taking this opportunity very seriously before starting off their Wealth Management services along with selling other financial products like Insurance later on.Now, let’s just see how the mutual fund investors reciprocate with this and translate a huge success for Paytm Money.Also, it is very pertinent to say that for last 3 to 4 years Mutual Fund industries has grown substantially ,which is becoming very eye catching for new entrant like Paytm. Hopefully, this will continue in future as well since SEBI has come a long way to promote direct mutual funds for the interest of the investors only.
