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Paytm Money, a wholly-owned subsidiary of digital financial services platform Paytm, has launched Exchange-Traded Funds (ETFs) on its platform, post-approval from the Securities and Exchange Board of India (SEBI).
These are passive funds that are listed on NSE/BSE and traded like regular equity shares proving the merits of mutual funds along with the return potential of stocks.
Paytm Money said that it believes that ETF is an essential part of an investor’s portfolio and all Indians must invest in it. Therefore, the company has made it convenient for new investors by facilitating ETF investments for as low as ₹ 16 in Equity, ₹ 44 in Gold and ₹ 120 for NIFTY.
Varun Sridhar, CEO - Paytm Money, said, “ETFs are investment avenues that everyone should add to their portfolio to earn index or market-linked returns at a lesser cost. At Paytm Money, our efforts have been to democratise and simplify wealth management for all and in the case of ETFs also we have simplified investing for everyone. We are offering a user-friendly interface along with necessary factors that the user may need to make an informed decision and invest in ETFs of their choice conveniently. We are targeting 100k users to invest in ETFs in the next 12 to 18 months through the platform.”
Live prices
The platform’s interactive and easy to use interface helps to track the price changes in the preferred ETFs along with the flexibility to set a price alert. It also updates the live prices of an ETF and empowers investors to place a sell order during the open market hours and receive the money directly in their bank account. Advanced investors can even execute intra day trades in ETF and the simple stop loss/target price orders allow users to automate their risk management, a statement issued by Paytm Money said.
The investor also gets the flexibility to invest via both the Paytm Money App and the Paytm Money website.
The App is also tailored to serve as a good long-term strategy helping experienced investors diversify their portfolio on a broad-based level.
In India, there are 69 different kinds of ETFs available across the index, gold, equity and debt categories with top-performing ETFs such as Aditya Birla Sun Life Gold ETF, Nippon India Nv20 ETF, LIC G-Sec Long Term ETF among others. They have delivered returns to the tune of 18.67, 10.29 and 8.43 per cent, respectively.
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