Fintech major Paytm on Monday said its wholly-owned subsidiary Paytm Money has launched Exchange-Traded Funds (ETFs) on its platform after approval from the Securities and Exchange Board of India (SEBI).
An exchange-traded fund (ETF) is a collection of securities people can buy or sell through a brokerage firm on a stock exchange."ETFs are investment avenues that everyone should add to their portfolio to earn index or market-linked returns at a lesser cost...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," Paytm Money CEO Varun Sridhar was quoted as saying in a statement.
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He added that the company is targeting one lakh users to invest in ETFs in the next 12-18 months through the platform.
"Paytm Money believes that ETF is an essential part of an investor's portfolio and all Indians must invest in it. Therefore, the company has made it convenient for new investors by facilitating ETF investments for as low as Rs 16 in equity, Rs 44 in gold and Rs 120 for NIFTY," the company said.
In India, there are 69 different kinds of ETFs available across the index, gold, equity, and debt categories.
The platform's interactive interface helps to track the price changes in the preferred ETFs and allows users to also set a price alert.
It updates live prices of an ETF and allows investors to place a sell order during the open market hours and receive the money directly in their bank account, the statement said.
Earlier in September, Fintech giant Paytm formally launched its stockbroking service, targeting nearly 10 lakh investors across the country via its unit, Paytm Money.
Early access to Paytm Money's stockbroking service received over 2.2 lakh registrations, out of which 65 percent were aged 18 to 30 years, the startup said. With millennials becoming increasingly financially savvy, that bodes well for Paytm which hopes to challenge institutional banking services by marrying finance with technology.
(Disclaimer: Additional background information has been added to this PTI copy for context)
Edited by Kanishk Singh