Mutual funds have earned a reputation of being talked about every time there is a discussion on investment or goals — financial and personal. A big reason behind this is that this form of investment is increasingly becoming an undeniable part of people’s life goals and plans. Although seasoned investors are well aware of the benefits of mutual funds, for the uninitiated it may seem intimidating and complex. The reality though is that mutual funds are meant for everyone, whether you are an expert or an amateur. At Paytm Money they are simplifying this journey of investing in mutual funds for every Indian.
As a first-time investor, you might have certain inhibitions about investing. It could be about anything from the amount of paperwork you may have to furnish or the safety, security, and transparency of investing. You may also face confusion regarding which funds to invest in or about the investment duration. To make your first investing experience simple, easy and hassle-free, Paytm Money brings to you a comprehensive investment app with the objective to simplify your life while also giving you the best of funds to choose from.
One97 Communications, the original owners of Paytm launched its much-awaited Paytm Mutual Funds app, Paytm Money. Aimed at selling mutual funds and financial products, Paytm Money offers SIPs starting at as low as Rs 100.
The company plans to double the number of mutual fund investors in the country by 2023 to over 50 million. Currently, India has around 20 million active mutual funds investors.
Paytm Money Ltd, a wholly-owned subsidiary of Paytm has already partnered with 25 asset management companies (AMCs) to sell direct plans of mutual funds via its Paytm Money app.
What Is Paytm Money?
Paytm Money is basically a mutual funds app via which one can buy and sell mutual funds. The Paytm Mutual Funds app enables customers to buy and sell mutual funds directly via the Paytm Money app and manage the investment portfolios from your device.
The New Paytm Wallet does not have a requirement of undertaking in person verification (Full KYC) and comes with lifelong validity. You can add up to Rs. 10,000 per month.
In India, a limited number of people directly invest in equity markets. With the launch of stock trading, Paytm Money aims to drive higher penetration in equities investing with an easy to use product, low pricing (cash delivery trades are free with intraday trades as low as Rs.10) and digital KYC with paperless account opening.
The company is offering early access to a select set of users to receive feedback and the app will eventually be opened to everyone in a few weeks. This service is only accessible for its Android & Web users, and will be followed by an iOS release in a few weeks.
With more than 6 million users on its platform for Mutual Funds & NPS investments, today Paytm Money has investors from 98% of pin codes of India. With its investor first approach, the team at Paytm Money sees a similar trajectory for stocks on its app given the limited penetration of the product in the country and the ease of accessibility the app offers.
Having become a Sebi-registered investment advisor, Paytm Money plans to be India’s simplest, most transparent and best investment platform which will help investors grow their money and also make wealth management accessible to a large number of people. For this, it plans to launch easy-to-understand wealth products for the Indian masses. This will also help the company tap the untapped market.
The platform initially helped consumers to invest in Mutual Funds with just a click of a button in the Android or iOS app. Now, the digital financial service is adding yet another service to the platform. Going forward, Paytm Money users will be able to invest in stocks.
With this Paytm Money is not only going against developed players like HDFC Securities, ICICI Direct, Kotak Securities but also will be competing against the likes of Zerodha, Groww, Sharekhan and more. In order to be competitive, the company is offering intraday trading charges at as low as Rs. 10.
In order to get a Demat Account with Paytm Money, the users will first need to download and install the Paytm Money app on their Android or iOS smartphone. The stock market trading is not yet available on iOS but will be arriving soon. Until then, the users can also head over to the web version.
First, the user will need to create an account with Paytm Money and do a KYC verification. The user will also be required to link their bank account through which they would like to add funds into the Demat Account.
As for the pricing, Paytm Money is charging as low as Rs. 10 on intraday trades. The company is also charging a brokerage fee of Rs. 0.01 + GST per executed order. DP charges for Delivery Sell Orders are set at Rs. 10 per scrip per day. Paytm Money will also be charging an annual fee of Rs. 300 and will charge Rs. 200 initially as Digital KYC Charges. effectively, if we see that this brokerage model will be costly for retial traders and we will like to keep away from it as it is backed by Chinese backed money.
Varun Sridhar, CEO of Paytm Money, in a press statement, said, “With the addition of equities, Paytm Money seeks to drive financial inclusion among investors by removing information gaps and facilitating stock penetration in the country.”
It is safe to trade with Paytm Money as the company has already received formal approval from the Securities and Exchange Board of India for its stockbroking service back in April 2019. Currently, the platform also offers mutual fund and National Pension System (NPS) investments.
Varun Sridhar, CEO — Paytm Money shared, “With the addition of equities, Paytm Money seeks to drive financial inclusion among investors by removing information gaps and facilitating stock penetration in the country. For this, the app would provide in-depth financial & historical price data for every listed company to enable investors to research the stock market on their own. This promotes simple, convenient, and quick investing, as well as informed decision making by the user. We remain committed to making Paytm Money a comprehensive wealth management platform for every Indian.”
Cash and intraday trading has been introduced in beta mode and the company plans to launch the derivatives segment later. The inclusion of stocks to an already feature-rich platform is a smart move that will aid the investor journey in more ways than one. With its Smart Search & Notifications, users can discover & set price alerts for as many as 50 stocks and get notified when the price is reached.
Moreover, the investor can create and customize multiple watchlists to track real-time price changes for up to 50 stocks. Users can also automate stock investing by setting buy orders on a weekly/monthly basis. Also, with the built-in brokerage calculator, the investor can discover the transaction charges & know the exact breakeven price to sell stocks profitably. Besides, the advanced charts and other options like cover order & bracket order have been added to make the stock trading experience more rewarding. All this and a lot more would be available with absolute data privacy to keep investors’ personal data safe with bank-level security.
Paytm Money, the wealth management arm of One97 Communications Ltd, will allow users to invest and participate in upcoming initial public offerings in India on its platform, it said on Sunday.
The platform will also offer an interface to help users change, cancel or reapply the bids within the IPO window. It will also aim to introduce features that will allow investors to track upcoming IPOs, view company history, download the draft prospectus, and check the performance of past IPOs. This service will be available both on the Paytm Money app and the website.
This launch will benefit retail investors with wealth creation opportunities, the company said, adding that the users will be able to seamlessly apply and join the growth story of rapidly expanding companies.
The company has made the process of IPO application completely digital for retail investors across the country. It aims to continue to innovate and add new tech-savvy features for enhanced user experience.
Paytm Money has enabled investors to instantly apply for all the latest IPOs via UPI ID, linked to their bank accounts to quickly complete the process. The company is leveraging the convenience of UPI infrastructure to offer a faster turnaround time reduced to 3-4 days for completion of the entire process.
The new service will give retail investors wealth creation opportunities as they will be able to apply and join the growth story of rapidly expanding companies, the company said.
“The Indian startup ecosystem has a growing appetite for entering the capital market. Now more companies want to raise capital from a broader set of investors with a public listing. Investors are also increasingly willing to diversify their portfolio. This presents a big opportunity and we intend to make the process more accessible. In the near future, we plan to launch IPO funding, derivatives trading, margin finance, and a host of other value-added features to make investing seamless and convenient," said Varun Sridhar, chief executive officer, Paytm Money.
During March-November, the National Stock Exchange and BSE raised a total of ₹24,973 crore via 12 IPOs. Some of the successful IPOs include SBI Cards, Mazagaon Dock, Rossari Biotech, Happiest Minds, and CAMS. Happiest Minds and Rossari Biotech were oversubscribed, according to NSE’s data.
In September, Paytm Money claimed to have 6.6 million subscribers, surpassing Zerodha’s 3 million.
Paytm Money said that 70% of its users are first-time retail investors, while Zerodha claimed that 65% of its users are new.
Earlier this month, Zerodha had also announced the launch of a new platform, which allowed users to gift stocks, exchange traded funds, and gold bonds to others. The company also said that it will enable gifting of mutual funds to minors.
Recently, the chief executive of National Payments Corp. of India, Dilip Asbe, said UPI has seen 10x growth in India and will grow at the same rate as new use cases, such as retail investing for IPOs through UPI and, features, such as Autopay, are added.
In the next 6-8 months, Paytm Money plans to bring in new products and features for educating the customer and focus on alternative investment features to help reduce investor’s risk.
“The key to investment is not to make money, but to avoid losing it, and that’s the product philosophy," said Sridhar.
Paytm Money plans to enter the derivatives segment as well as provide options around futures trading.
It is also looking to launch new features for high-frequency traders.
For stock broking, Paytm Money allows users to discover and set price alerts for as many as 50 stocks and get notified when the price is reached.
Further, investors can also create and customize multiple watch lists to track real-time price changes for up to 50 stocks.
The platform will also allow users to automate stock investing by setting buy orders on a weekly or monthly basis.
Also, with the built-in brokerage calculator, the investor can discover the transaction charges and know the exact break-even price to sell stocks profitably.
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