Paytm Money, the subsidiary of leading digital financial services platform Paytm has unveiled Exchange-Traded Funds (ETFs) on its platform, after getting the nod from the Securities and Exchange Board of India (SEBI).
“With this new development, the company is now a comprehensive platform wherein investors from across all financial and knowledge backgrounds can access ETFs conveniently and begin an investment journey to accumulate wealth for their various financial targets,” stated Paytm.
An ETF is a passive mode of investing which invests in a bouquet of securities that primary tracks a certain index. It tries to reflect the return of the index it is tracking. Unlike mutual funds, ETFs can only be bought and sold via the stock exchanges. Demat account is mandatory to trade in ETFs platform. Since they are passively handled, ETFs are light on pockets and have a much lower expense ratio as compared to actively-managed mutual funds.
“ETFs are investment avenues that everyone should add to their portfolio to earn index or market-linked returns at a lesser cost. At Paytm Money, our efforts have been to democratize and simplify wealth management for all and in the case of ETFs also we have simplified investing for everyone. We are offering a user-friendly interface along with necessary factors that the user may need to make an informed decision and invest in ETFs of their choice conveniently. We are targeting 100k users to invest in ETFs in the next 12 to 18 months through the platform,” says Varun Sridhar, CEO – Paytm Money.