Paytm Money Expects Direct Mutual Funds’ Market Share To Increase To 50%
Signage for PayTM online payment method displayed at a clothing store in Bengaluru, India. (Photographer: Dhiraj Singh/Bloomberg)

Paytm Money Expects Direct Mutual Funds’ Market Share To Increase To 50%

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Digital investment platform Paytm Money expects its market share in direct mutual fund subscriptions to go up to 50 percent in six months with a ‘Switch’ option that it plans to start in a fortnight, a top company official said.

Currently, its market share stands at around 40 percent of total such subscriptions.

The company is planning to start ‘Paytm Switch’ option for mutual funds in 10-15 days that will enable customers to switch from regular mutual funds to direct mutual funds, from banks, stock brokers, distributors and asset management companies to Paytm Money.

“Currently, we have 40 percent of total direct mutual fund subscribed from our platform. With Paytm Switch, we expect it to go to 50 percent in next five-six months,” Pravin Jadhav, whole-time director at Paytm Money, told PTI.

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

“We expect direct mutual funds share in the market to increase to 25 percent in two years. In the direct mutual funds segment, Paytm Money contribution will reach around 50 percent in five-six months from 40 percent at present,” Jadhav said.

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

“The mutual fund industry is expected to grow exponentially and double its size within the next four-five 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,” Jadhav said.

Within a year of its launch, Paytm Money claims to have acquired a user base of over 30 lakh.

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