More than half a million users have already signed up to buy MFs on Paytm Money Mutual Fund even before the launch of the digital platform, said Pravin Jadhav, whole-time Director of Paytm Money, in an interview.
Even though Paytm is accepting advance registrations, it has not yet launched the mutual fund business to the public. Paytm Money, Paytm MF distribution platform, is nearing launch and it will go live by the end of August 2018.
The company is testing the app internally with the help of several important employees. The key employees are already buying and selling mutual funds as instructed. The Paytm MF distribution platform will be going live very soon, said the company’s top official.
The people who register with Paytm Money are just invited to register, and they will be able to start the MF investment transactions once the platform is launched, added Jadhav.
As soon as the fund house is launched, all its MF schemes will be offered for purchase. The people who have signed up early will get the opportunity to start buying mutual funds first.
Paytm Money Mutual Fund is a subsidiary of One97 Communications Ltd. One97 also owns Paytm mobile wallet and Paytm Payments Bank. Paytm Money is anticipated to increase MF distribution in small towns, or beyond the top 30 towns.
Paytm Money will offer only direct plans as it is an RIA (Registered Investment Adviser). Direct plans are cheaper as they do not have any distributor commissions, and are suitable for investors who desire to invest in a fund house directly or through a SEBI (Securities and Exchange Board of India) RIA.
However, the company’s top official did not reveal anything about the number of fund houses that will be available on Paytm Money. He also declined to comment on the fee structure. It is revealed that at least 15 fund houses must have tied up with Paytm Money Mutual Fund, stated two anonymous MF industry officials, reported Live Mint.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]