Paytm Money, the wholly-owned subsidiary of India's largest digital financial services platform Paytm, has launched exchange-traded funds (ETFs) on its platform, post-approval from the Securities and Exchange Board of India ( SEBI). "With this inclusion, the company becomes a comprehensive platform where investors from across all knowledge and financial backgrounds can easily access ETFs and embark on an investment journey to accumulate wealth and achieve their various financial goals," says Paytm.
ETF is a form of passive investment that invests in a basket of securities that generally track a specific index. Try to reverse the return of the index you are crawling. Unlike mutual funds, ETFs can only be bought and sold through exchanges. The demo account is essential to trade with ETFs. Because ETFs are passively managed, they are cheaper and have a much lower expense ratio compared to actively managed mutual funds.
Investments in ETFs through Paytm Money are relevant for first-time investors who can start an investment with a small nominal amount. Paytm Money has made it convenient for new investors by making it easy to invest in ETF investments for as low as ₹16 in equity, ₹44 in gold, and ₹120 for Nifty. The platform helps track price changes in preferred ETFs along with the flexibility to set price alerts. It also updates ETF prices live and allows investors to place a sell order during open market hours and receive funds directly to their bank accounts. Advanced investors can execute daily trades on the ETF and stop loss/target price orders allow users to automate their risk management.
An investor can invest through the Paytm Money app and the Paytm Money website.
"ETFs are investment methods that everyone should add to their portfolio to obtain indexed or market-related returns at a lower cost. At Paytm Money, our efforts have been to democratize and simplify wealth management for everyone, and also in In the case of ETFs, we have simplified investing for everyone. We provide an easy-to-use interface along with the necessary factors a user may need to make an informed decision and invest in the ETFs of their choice conveniently. Varun Sridhar, CEO of Paytm Money says that our goal is for 100k users to invest in ETFs within 12 to 18 months through the platform.
In India, there are 69 different types of ETFs available in the index, gold, equity, and debt categories with high yield ETFs like Aditya Birla Sun Life Gold ETF, Nippon India Nv20 ETF, LIC G-Sec Long Term ETF, among others. They have delivered returns to the tune of 18.67%, 10.29%, and 8.43%.
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