Mukesh Ambani-led Reliance Jio Infocomm is likely to enter the space of mutual funds and other financial products in the new year through its digital payments platform JioMoney. JioMoney is an app that enables users to make secure digital payments such as mobile and DTH recharges, send/receive money, pay insurance and other premiums and managing finances.
"Reliance Jio has been working on rolling out financial services for a few months now. We expect a launch next year," a senior executive of a financial services firm aware of Jio's plans told Mint. The business daily also cited a Reliance Jio official saying that the firm has been beta-testing its offering among employees for a few quarters, which would allow the telco to test its network and infrastructure, besides plugging loopholes before a formal launch.
The Mint report cited a senior executive of an executive search firm saying that Reliance Jio has been hiring for its mutual fund segment. The Indian mutual fund industry which comprises 44 players is worth Rs 27.05 lakh crore.
The assets under management (AUM) of the MF Industry have grown nearly 3.5 times in ten years. AUMs which stood at Rs 8.22 lakh crore as on November 30, 2009, rose to Rs 27.05 lakh crore as on November 30, 2019. The growth has been stronger in five years with AUM rising from Rs 10.90 lakh crore from November 30, 2014, to Rs 27.05 lakh crore as on November, 30 2019, marking a 2.5 fold increase during the period.
On November 30, 2019, total number of accounts or folios stood at 8.65 crore. The number of folios under equity, hybrid and solution oriented schemes, where maximum investment is from retail segment stood at 7.72 crore (77.2 million).
Mutual fund folios rose for the 66th consecutive month in November last year.
Reliance Industries has already announced the launch of Jio Payments Bank in April 2018. A 70:30 joint venture between Reliance Industries and the State Bank of India, Jio Payments Bank has established competitors such as Airtel Payments Bank and Paytm Payments Bank promoted by Paytm founder Vijay Shekhar Sharma.
By Aseem Thapliyal