Paytm Money is a transaction and advisory platform for the investor looking to invest in a mutual fund. Paytm Money is a subsidiary of PAYTM.

The very fact that it has come from the PAYTM, which has become a household name, made the platform instant success. The Paytm Money app has been downloaded more than 5 million times in google play store.

There are multiple transaction platforms available for mutual fund investors in INDIA. They are available from mutual fund companies, Registrar and transfer agents (RTAs) like KARVY and CAMS, FINTECH companies like Paytm Money, Groww, Kuvera, and many more.

This post will help mutual fund investors to decide as to whether the PAYTM MONEY platform is a suitable and good investment platform.

Why choose PAYTM Money?

As the famous saying goes, “Return of your Money is more important than return on your Money.

We need to trust a company with the strong financial backing and a consistent track record in the market. In this parameter, PAYTM MONEY fits the bill. The parent company is the largest transaction platform in INDIA and trusted by millions.

The Mutual fund operations are structured by regulation in such a way that there is demutualization of different functions like sales, fund management, assets keeping, and transaction handling. For more details, do read.

The investor money never goes into the account of transaction platforms like PAYTM MONEY. The investor securities kept with the custodian.

Mutual fund investment is available through two routes. Through agents or distributors, which is called REGULAR PLANS. These are expensive for investors as the compensation for the distributor is charged from the investor’s Money.

The second way is the DIRECT PLAN, where the distributor is not involved and more beneficial to investors owing to lower cost. PAYTM Money provides investment in DIRECT PLANS.

Buying DIRECT PLANS from the PAYTM money platform is a significant benefit for investors as they get to buy a low-cost mutual fund scheme through its platform. 

Often you as investor ask – How PAYTM MONEY earn?

Today’s world information is Money. Through Paytm money platform company gather an extensive database. This investor’s information can be a great help in understanding customer behavior and investment pattern.

As of now, the company is looking to acquire investors; later, the company may monetize through advertisement on its platforms, cross-selling of other products, and many more.

Features and benefits – PAYTM Money

Existing investment tracking

The app allows an investor to upload existing investments on their platform and track on day to day basis. It helps investors to consolidate their financial mutual fund investment in one place.

Multiple payment options

The platform allows you to choose from various payment options like net banking, UPI, and OTM based payments.
The platform also provides to register multiple banks for payment in paperless manner. Registring multiple banks can be helpful if an investor chooses to pay form various banks.

Various asset allocation strategy – INVESTMENT PACK

The majority of your portfolio return would be due to your asset allocation strategy.

There are various methodologies used by the app to identify the risk an investor would be able to take. The parameters used are their age profile, the number of dependents, earning potential. Accordingly, the platform classifies investors into Aggressive, Moderate, or conservative.

Investment packs are helpful for new investors, who are not sure about which scheme to choose or what will be suitable for them to invest.

I would advise the investor to choose from an investment pack to invest as the investment expert curates them.
Do remember, choosing the right mutual fund is more important than selecting the best mutual fund. For more, do read.

Innovative SIP investment

The platform uses a One-time mandate (OTM) for operating SIPs. There are various innovative features that I liked.

1. Asset allocation in SIP

Asset allocation strategy means choosing schemes from various asset classes for a systematic investment plan or lumpsum investment.
Like you can start investing in Equity, Debt, or gold scheme simultaneously.
The asset allocation investment advised by the PAYTM money platform based upon your risk profile.

2. Play, PAUSE, INCREASE or decrease

Investors can start sip on any date as per their convenience and for any amount. SIP investment can be started for as low as Rs 100 per month and increased as per financial viability.

One can pause the installments for few months if an investor wants, and payments will start automatically after the chosen period. One can also increase the installment amount as per one convenience and decrease too.

Multiple investment ideas

This feature allows an investor to explore many ideas to start investment either though SIPs or LUMSUM.

The VARIOUS ideas to explore are HIGH-RISK FUNDS, MEDIUM RISK FUNDS, TOP AMC, FUND MANAGER, LARGE COMPANIES, DEBT FUNDS and many more.

Guide to open and transact on PAYTM Money platform

The most significant benefit of using Paytm platform is your investment account can be ready in minutes.

An investor needs to be Know Your Customer (KYC) compliant to start investing in mutual funds. Contactless KYC processing is done through the PAYTM money app by uploading individual PANCARD and address proof.

How to open an account?

To open an account with PAYTM MONEY, we need to follow the following steps

1. Create your PAYTM account or log in with your existing PAYTM account
2. Provide your PAN NUMBER
3. INCASE your PAN NUMBER is KYC verified, provide your bank details (instantly verified by PAYTM).
4. An investor, not KYC complied, has to submit the following documents 
   1. Upload your PAN CARD
   2. Your PIC
   3. 10-second video
   4. AADHAR front and back PICS
   5. BANK PROOF and details
5. In half an hour, investor details will be verified, and account activated. The investor would be informed through email and SMS. 

How to transact?

TO start the investment, one has to select the theme or objective for which they want to invest.

In case OTM is registered, you can start SIP immediately. The company asks you to upload a filled OTM form to sign upload on their platform for verification. In a week’s time, OTM is activated.
LUMSUM(ONE TIME) investment can be made by paying through net banking or UPI.

Reminders for future SIP deduction is available.

Please remember that the NAV allotment is delayed by one working day for OTM mandated investment as Money is debited on the next working day.

Shortcoming

The platform offers multiple features that are very user-friendly. Certain features are not available as of now.

There is no option of switching on investment as of now. Investors looking to transfer Money from Debt scheme to equity scheme or from one scheme to another plan is not possible.

Option for a Systematic transfer plan (STP) or systematic withdrawal plan (SWP) is also not available.

An automatic increment of the SIP amount on a periodic basis is not available. this facility is called STEPUP SIP.
I hope in the process of time; the company will incorporate these features.

Conclusion

The PAYTM MONEY app is one of the largest mutual fund transaction platforms available to the investor in INDIA. Coming from the PAYTM family, the app provides customer traction and faith.

Ease of use and instant activation of account for investment makes the platform success among the investment community in INDIA.
There are some innovative features available on the platform. Also, there are some shortcomings in which the company can look into it.

We are looking for your feedback and comments.