Alibaba-backed Paytm, which is all set to launch its financial management app Paytm Money, is optimistic that about two crore customers will buy mutual funds on its app in the next three years.
Paytm Money, a subsidiary of Vijay Shekhar Sharma-promoted One97 Communications, will be live on both Android and iOS platforms in the next two weeks, and in the next 1,000 days, it aims to have a two-crore customer base on the mutual fund platform. At present, Paytm is accepting early registrations from users on its mobile wallet.
Sharma, while speaking at a mutual fund event, said that the company is building a product for the masses to make it easy for them to buy mutual funds.
Sharma said the company has already listed 10-13 mutual fund houses, and would be selling direct funds with zero charges from users. He, however, did not reveal the details on how the company plans to make money through mutual funds.
He also said that only customers with full KYC will be able to buy mutual funds on Paytm. The company also plans to launch a slew of other financial products on its platform.
The ₹23-lakh-crore mutual fund industry is growing fast in India, but is still grappling with problems such as geographical reach beyond the top 30 cities, mis-selling, awareness and education. Several online players, such as Fundsindia.com, Scripbox, Wealthy, Rupeevest and Tauro Health, among a dozen others, have come up to target small towns and urban masses. Paytm Money will be an addition to this growing list.
“However, the possible challenge with digital platforms would be advisory services, a lack of which can lead to a bad investment, which is equal to mis-selling,” said Rajesh Krishnamoorthy, Managing Director, iFAST Financial, a fund-distribution house.