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Paytm Mall currently claims a run rate of $3 billion in gross merchandising value (GMV) and is also aiming to touch a $10 billion run rate by the end of fiscal 2018-2019. Photo: Bloomberg.
Paytm Mall currently claims a run rate of $3 billion in gross merchandising value (GMV) and is also aiming to touch a $10 billion run rate by the end of fiscal 2018-2019. Photo: Bloomberg.

Paytm Money launches ETFs, starting 16 in equity, 44 in gold

  • There are 69 different kinds of ETFs available across the index, gold, equity and debt categories
  • Top-performing ETFs such as Aditya Birla Sun Life Gold ETF, Nippon India Nv20 ETF, LIC G-Sec Long Term ETF have delivered returns to the tune of 18.67%, 10.29% and 8.43%

Paytm Money, the wholly owned subsidiary of India's largest 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). "With this inclusion, the company becomes a comprehensive platform wherein investors from across all financial and knowledge backgrounds can conveniently access ETFs and start investment journey to accumulate wealth for their various financial goals," says Paytm.

An ETF is a passive form of investing which invests in a basket of securities that mostly tracks a certain index. It tries to mirror the return of the index it is tracking. Unlike mutual funds, ETFs can be bought and sold only through the stock exchanges. Demat account is a must to trade in ETFs. Since they are passively manged, ETFs are cheaper and have a much lower expense ratio compared to actively-managed mutual funds.

Investments in ETFs through Paytm Money is relevant for first-time investors who may initiate an investment with a simple nominal amount. Paytm Money 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. The platform 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.

The investor can invest via both the Paytm Money app and the Paytm Money website.

“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 democratize 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," says Varun Sridhar, CEO - Paytm Money.

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%.

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