Paytm Money introduces Switch to Direct feature for mutual fund investors
Paytm Money, a platform for mutual fund investments, today announced the launch of Switch to Direct feature, a smart solution that offers the convenience of switching from regular to direct plans of mutual funds.
Paytm Money, a platform for mutual fund investments, today announced the launch of Switch to Direct feature, a smart solution that offers the convenience of switching from regular to direct plans of mutual funds. Paytm claims that this new addition is expected to benefit over 18 million existing retail investors of mutual funds who can now easily move their existing investments to direct mutual funds and get up to 1 percent higher returns owing to lower expense ratios.
The Switch to Direct feature on Paytm Money provides smart suggestions to its users based on the expected benefits from direct schemes, exit loads and tax implications. This enables investors to take informed decisions regarding switching their investments. The feature has been available in beta mode for a few select users over the past weeks, during which it was observed that over 65 percent of users switched from regular funds to direct while 35 percent of users switched from AMC channels and other direct platforms to Paytm Money. The option is now available to all users of Paytm Money on the latest app version for Android & iOS.
While awareness of direct plans of mutual funds is on the rise, many investors are investing in direct mode when they invest via online channels (web or apps), or a fin-tech platform, or via net-banking provisioned by their bank. Features like these will also help Paytm Money bring transparency and build awareness of direct plans in India, it said.
"We realised that many investors wanted a simple and fully digital solution to switch their existing regular investments to direct mode. We are excited to bring the Switch to Direct feature on the Paytm Money platform and expect this will further increase the adoption of direct plans of Mutual Funds in India,” said Pravin Jadhav, Managing Director & CEO of Paytm Money.
Paytm Money has been offering direct plans of Mutual Funds for investments to its 3 million users from its inception. The company is also the single largest contributor of new SIPs to the Mutual Funds industry, it said.