With its new product, Paytm is looking to expand and capture the mutual fund investment market in India.
Paytm Money will enable users to buy and sell mutual funds from its platform, along with managing the portfolio using its platform.
“Our aim is to double the existing mutual fund market in terms of the number of investors. Once it reaches 50 million by 2025 from around 20 million presently, we want to take 50% market share of that,” said Pravin Jadhav, whole time director of Paytm Money.
With more than 8,50,000 registered users on the platform, it is looking to expand its presence into smaller towns as well. According to the company, more than 65% of the users registered on the platform come from B15 (Beyond the Top 15) towns, an industry term to describe smaller towns.
One97 Communications has committed to invest $10 million in Paytm Money, to help set up operations.
Paytm Money will give access to users at the rate of 2,500 new users per day and is looking to scale the number to 10,000 in the coming weeks. It has partnered with more than 25 asset management companies (AMC’s), covering 90% of industry AUM (Asset Under Management), to provide an extensive range of products for its users.
It has partnered with MorningStar, Crisil, and Value Research to help the users find the top-rated mutual funds, simplifying the decision-making process.
It provides easy SIP management with detailed tracking and analysis of the portfolio.
The users can start investing as low as 100 after completing free and completely digital KYC on their mobile, without any hassle. With the investments completely free of any charges and commissions, users get to keep their returns in full.
Last month, Paytm had acquired another fintech startup Balance Technology to help strengthen its own wealth management platform Paytm Money.
Other players competing with Paytm Money in the mutual fund market include Fisdom, mutual fund investment app, Scripbox, online investment service, Tauro Wealth, WealthTrust, TipBazaar, among many others.