Is Paytm Money-Mutual Funds/SIP Investment app safe and good


Paytm Money, the mutual funds app of Paytm has gained enough popularity within a year of its launch. Many beginners have a question in mind regarding the platform through which they should start investing in mutual funds. In this article, we will see the general overview, reviews, features, drawbacks, safety, portfolio details and many other things about Paytm Mutual Funds app.

Introduction

Paytm Money-Mutual Funds/SIP Investment App was launched on 3rd September 2018 with an aim to double the mutual fund investor base in India to 5 crores by the year 2023. Mutual funds are becoming quite popular among Indians in the past year. The Indian mutual fund industry has grown from Rs 6.64 lakh crores as on 31st May, 2009 to Rs 25.94 lakh crores in assets under management as on 31st May, 2019 — almost 4 times growth in past 10 years, according to the Association of Mutual Funds in India. There have been a number of reasons behind it such as the decreasing rate of interest on NSCs and FDs, decreasing rate of interest on the savings account, sudden fluctuations in gold prices and so on. People are realising the benefits of investing in mutual funds over other forms of investment. With the launch of a number of online applications for investing in mutual funds, it has become quite easy even for new investors (or beginners) to start investing. With digital KYC, these apps enable the investor to invest in any mutual fund from the top AMCs of India with just a click.

Paytm Money — a subsidiary of One97 Communications Limited owned digital payments company Paytm, launched the Paytm Money app almost a year ago with a focus on building investments and wealth management products and services. Since Paytm is already so popular in India, it was not difficult for Paytm to win the trust of Indians and within a very short period of time, Paytm Money has gained over 1 crore users and a 4.3-star rating on Google Play Store.

Paytm Money Starting Page
[Source- Paytm Money]

In this article, we will look at an overview of the Paytm Money-Mutual Funds/SIP Investment App and its pros and cons.

  1. Commission-Free Investing:- Paytm Money charges no hidden commissions from investors or mutual fund houses.

  2. 40 AMCs:- Paytm Money, this year announced that it is now the only online platform to have mutual fund schemes from all 40 Asset Management Companies (AMCs) in India. Paytm Money was launched in 2018 with 25 AMCs and over the past few months, the mutual funds' company has gradually integrated with all retail investor-focused AMCs in India and now has achieved the unique status of being the only online platform that offers investing in all 40 AMCs.

  3. No Transaction Fees:- Paytm Money charges no fee on buying and selling of mutual funds.
  4. Free Risk Profile Assessment:- Before investing, one can take Paytm Money's risk profile assessment for free.

  5. Fully Mobile Investing:- One does not need to visit any bank or any physically any place and can fully control his investments through the mobile.

  6. Direct and Regular Mutual Funds:-Paytm Money offers the options of investing in both direct and regular mutual funds. By investing in direct mutual funds, one can earn upto 1% higher returns. But as a beginner, one should invest in regular mutual funds.

  7. Portfolio Insights:- Paytm provides all the details of each mutual fund, their past returns, expected returns, type, AMC information, documents, risk factor, NAV value, etc.

  8. NFOs:-Paytm is one of the few apps which provides New Fund Offerings(NFOs).

  9. Free and Digital KYC on Mobile:- Paytm Money offers free digital KYC through mobile. It is a 5 minute process in which one has to give details about the beneficiary, pan card details (along with a scanned photo of pan card), address details (along with a scanned image of address proof), signature photo, bank account, passport-sized photograph, and finally a short video in which the beneficiary has to speak his/her name. The KYC process usually gets authenticated within a few hours, which means one is investment ready in a few hours of providing details.
    But there are a few drawbacks to the Paytm Money KYC process. Firstly, even if a beneficiary has already provided KYC details on Paytm Wallet of Paytm Payments Bank, he/she has to again provide all the KYC details. Secondly, sometimes the KYC process takes many days to complete and for some consumers, it never gets completed! And thanks to the poor customer support team of Paytm Money, one gets no reply from the support team that when would the KYC get completed.

  10. Customer Support:- The Customer Care team of Paytm Mutual is the worst. And this is the point which makes this app irritable to users. When the app was launched in 2018, its customer support was too poor that many customers had given a 1-star rating to the app on Google Play Store. After one year, customer support has improved but still lacks the ability to build on investors trust.

  11. Investment Packs:- The app offers investment packs to its customers which is a pack of 5 different mutual funds and is given exclusively to customers based on their past investments and their risk profiles and goals. This is both a positive and bad facility. Whereas it provides a good help to investors, it may prove to be a trap for beginners who know nothing about mutual funds and investments.

  12. Real time investing:- Though the One 9 Communications owned company says it provides real-time investing to its consumers, which means that investors can invest in mutual funds quickly and fast, the investing experience for a number of customers has been slow and disappointing.


If you are a beginner and want to learn about mutual funds, read Beginners Guide to Mutual Funds.

Conclusion

Paytm Money-Mutual Funds/SIP Investment App is overall a good app in the market providing the ability to invest in mutual funds of all 40 AMCs with zero commissions. Within a year of its launch, the app has been able to gain the trust and support of millions of customers and hopefully, it will focus more on its customer support and real-time investing. So overall a 4-star rating from my side and a good investing app!

Note:- Mutual funds are subject to market risks. Read all schemes and documents carefully before investing.


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