Paytm Money plans to have an increase in its market share in direct MF


Paytm Money Digital expects its market share in direct mutual fund subscriptions to ameliorate up to 50 per cent in the next six months time.  A company official elucidates that Paytm aims to achieve this objective by launching a 'Switch' option which it plans to initiate in a fortnight. At present its market share is about 40 per cent of total such subscriptions.

The company intends to embark on the ‘Paytm Switch’ option for mutual funds in 10-15 days. This step is taken in order to assist customers from switching from regular MF to direct MF from banks, distributors, stock brokers and asset management companies to Paytm Money.

"Currently, we have 40 per cent of total direct mutual fund subscribed from our platform. With Paytm Switch, we expect it to go to 50 per cent in next 5-6 months," Pravin Jadhav, whole-time director at Paytm Money, told .

He said regular MF, in which commission is charged by the seller, accounts for 85 per cent of total market share and direct MF is around 15 per cent.

"We expect direct MF share in the market to increase to 25 per cent in 2 years. In the direct MF segment, Paytm Money contribution will reach around 50 per cent in 5-6 months from 40 per cent at present," Jadhav said.

The company has started new fund offers (NFOs) of MFs. With this, the platform allows investments in NFOs from all 40 asset management companies (AMCs) in India.

"The mutual fund industry is expected to grow exponentially and double its size within the next 4-5 years. We expect a few new AMCs will be launched and also existing small- and mid-sized AMCs to offer new unique scheme offerings to fill the market gaps. Our NFO offering today on Paytm Money is a reflection of our positive outlook towards the industry," says Jadhav.