Money & Banking

Paytm Money to facilitate ETF investment

Our Bureau. Mumbai | Updated on October 27, 2020

Paytm Money, which provides investment in direct plans of mutual fund schemes, will now facilitate investment in Exchange Traded Funds after getting the approval from SEBI.

ETFs are passive funds that are listed on the NSE and BSE. They are traded like equity shares, proving the merits of mutual funds, along with the return potential of stocks.

With this inclusion, the company becomes a comprehensive platform, where investors from across all investment options get to accumulate wealth for their various financial goals, said Paytm.

Investors can start ETF investments for as low as ₹16 in equity, ₹44 in gold and ₹120 for Nifty.

As opposed to actively managed mutual funds, ETFs are a relatively low-cost option since passive fund management results in the funds having a lower expense ratio. For investors putting in smaller amounts, the benefit of compounding, coupled with low-fund management costs, would enable them to boost the portfolio returns.

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 targeting 1 lakh users to invest in ETFs in the next 12 to 18 months through the platform,” he said.

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, and LIC G-Sec Long Term ETF, among others. They have delivered returns to the tune of 19 per cent, 10 per cent and 8 per cent.

Published on October 27, 2020

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