"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.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.