Home / Money / Personal Finance /  Mutual fund platforms tie up with Amazon to offer saving products to customers

Orowealth and Kuvera, two online mutual fund platforms have launched savings products that offer a 3% bonus on Amazon Pay Gift Cards. Identical advertisements released by both fintechs asked investors to make a lump sum investment of up to 90,000 by 10 September, which would be invested in liquid funds. Users can then redeem the accumulated amount between 1 October and 30 November, upon which, they will get the option to purchase an Amazon Gift Card with 3% extra value.

“We operate within the framework of applicable regulations. The objective is simple, to promote saving before spending, that is, healthy financial habits. The user only gets an option to purchase Amazon Pay Gift Cards on our platform after redemption and have the option to use it or not," said Gaurav Rastogi, chief executive office, Kuvera.

"We have prescribed a 90,000 limit because we accept payment through UPI, which has a 1 lakh limit per transaction. Our aim is to inculcate a savings habit," said Vijay Kuppa, co-founder, Orowealth.

The tie-ups, however, sparked criticism on social media. But some financial planners took a relaxed view of these offers.

“A third party, Amazon is offering a certain benefit to registered investment advisers' clients. I'm not aware of any Sebi rule or ethical code breached by this. Amazon is within its rights to attract customers through discounts," said Suresh Sadagopan, founder, Ladder 7 Financial Advisories.

But this doesn’t mean investors should queue up to avail of these offers. They should not invest in mutual funds in order to get discounts on e-commerce platforms. However, if the fund satisfies their time horizon, risk appetite and financial goals, then they can treat the Amazon offer as an extra option.

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