Paytm Money, the wholly-owned subsidiary of India’s biggest advanced financial and monetary services platform Paytm launches Exchange-Traded Funds (ETFs) on the platform, post-approval from the Securities and Exchange Board of India (SEBI). Paytm stated that with this consideration, the organization turns into a comprehensive and extensive platform wherein speculators from overall financial and information backgrounds can easily get access to ETFs and start an investment journey to aggregate wealth for their different financial objectives.
An ETF is a passive type of investing which invests resources into a basket of securities that generally tracks a specific index. It attempts to reflect the return of the index it is tracking. Unlike mutual funds, ETFs can be purchased and sold distinctly through the stock exchanges. Demat account is an absolute necessity to exchange ETFs. Since they are passively managed, ETFs are less expensive and have a much lower cost proportion compared with effectively managed mutual funds.
Investment in ETFs through Paytm Money is important for first-time financial investors who may start an investment with a basic nominal sum. Paytm Money has made it easier for new investors by encouraging ETF investments for as low as ₹16 in equity, ₹44 in gold, and ₹120 for Nifty. The platform assists with following the price changes in the preferred ETFs alongside the adaptability to set a price alert. It additionally refreshes the live prices of an ETF and enables investors to place a sell order request during the open market hours and get the cash directly into their banks. Advanced financial investors can even execute intraday trades in ETF and the simple stop loss/target price orders permit clients to automate risk management.
The financial investors can contribute through both the Paytm Money application and the Paytm Money site.
Varun Sridhar, CEO, Paytm Money mentioned that ETFs are investment avenues that everybody should add to their portfolio to acquire index or market-linked returns at a lesser expense. At Paytm Money, the company has endeavored to democratize and rearrange wealth management for all and on account of ETFs additionally, the company has simplified investing for everybody. The company offers an easy to use interface alongside necessary factors that the client may need to settle on an informed choice and invest in ETFs of their decision easily. The company is focusing on 100k clients to invest in ETFs in the following 12 to 18 months through the platform.