Digital investment platform Paytm Money expects its market share in direct mutual fund subscriptions to go up to 50 per cent 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 per cent of total such subscriptions
The company is planning to start 'Paytm Switch' option for mutual funds (MFs) in 10-15 days that will enable customers to switch from regular MF to direct MF, from banks, stock brokers, distributors 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 PTI.
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," Jadhav said.
Within a year of its launch, Paytm Money claims to have acquired a user base of over 30 lakh.
Copyright©2021 Living Media India Limited. For reprint rights: Syndications Today