Paytm, registered as One97 Communications Ltd. was founded by Vijay Shekhar Sharma in 2010. It claims to have a registered user base of 300 million with more than 89 million app downloads.
It is the leader of QR based mobile payments in India. Paytm launched the first mobile-bank- ‘Paytm Payments Bank’ back in 2017.
Paytm claims to be India’s largest mobile commerce platform. It started by offering mobile recharge and utility bill payments. Paytm also has an online shopping app ‘Paytm Mall’
Company is Coming soon Paytm Money which will offer you Mutual fund. Apart from selling mutual funds, the app will also provide portfolio services to investors where they can view complete details of their investment through the app. The app will also help you in tracking and managing your money
How it will work?
The Simplest Investment Platform in India. Paytm Money will offer only direct plans. Direct plans do not have distributor commissions and are, therefore, cheaper.
Direct plans are meant for investors who want to invest in a fund house directly or go through a Securities and Exchange Board of India (Sebi) registered investment adviser (RIA).
Since Paytm Money is an RIA, it can sell only direct plans. An RIA is allowed to charge fees.
Company senior person said “The app will begin with mutual funds and will gradually add other investment products,”
Benefits to Investors:
- Higher returns- Upto 1.5% Higher Returns with direct plans of mutual funds
- Zero Commissions
- No hidden distribution fees
- Leading AMCs in India will available on this platform
- The app will offer to invest in direct plans of all categories of mutual funds, including equity and debt schemes.
- Paytm Money Limited is registered with Sebi as an investment advisor.
- Paytm Money will be a free app and will be available for both iOS and android users.
Benefits to Industry:
India’s population of about 1.25 billion, barely 2% invest in mutual funds. E-commerce and online platforms like this have further enhanced the reach and access of mutual funds. Paytm mobile wallet, which claims to have 300 million users, so this will help to increase mutual fund penetration.
Inputs By Ms. Dipti Jog, SEBI Register Research Analyst