Paytm’s wealth management vertical, Paytm Money, has integrated with Paytm Payments bank. With this move users can now make mutual funds investments on Paytm Payments Bank as well. Following this integration Paytm bank’s 42 million users can make their Paytm Money account as the primary bank account for investment and redemption of the mutual fund.
“With this integration with Paytm Money, we introduce our customers to mutual fund investments and it is in line with our larger goal for financial inclusion,” , Paytm Payments Bank CEO Satish Kumar Gupta said in the the company statement.
Paytm Money recently integrated UPI and net banking options on its platform to facilitate its more than one million users for making investments in mutual funds. The company has partnered with 35 asset management companies of the country, which Paytm Money claims, cover 96% of AUM (assets under management) of the mutual fund industry.
Paytm Money sells mutual funds directly to consumers — a low-cost regular plan that eliminates the expense of distributor commissions. In this kind of mutual fund model, users have to pay commissions to the distributor.