Invest in Mutual Funds using UPI on Paytm Money

In what comes as a good news for mutual fund investors, they can now invest their money using UPI on Paytm Money.

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Paytm Money has come out with a new facility for investors. Now, they can buy mutual funds by just using Unified Payments Interface (UPI) based payment mode on the on Paytm Money app.

“As UPI based payments continue to witness massive adoption across all forms of online transactions, we are very excited to offer the same convenience of UPI to the mutual fund investors via Paytm Money,” said Pravin Jadhav, Whole-time Director, Paytm Money.

However, the investors can still continue to invest in SIPs and other investments through Auto-Pay facility which links 190 banks through automated e-mandates and net banking, Paytm Money said in a statement. Paytm Money offers only direct plans of mutual funds.

Paytm Money offers only direct plans of mutual funds that come with lower expense ratio due to zero distribution fee or commissions which in turn gives investors a better return on investments. The users can start investing in mutual funds with as little as Rs 100 via SIPs (Systematic Investment Plan) in some schemes or with higher amounts via lump sum mode. This investment service is completely free for the users.

The company has partnered with 32 AMCs (Asset Management Companies) covering over 94% of industry AUM of the Mutual Fund industry. The company has also tied up with leading rating services – MorningStar, CRISIL and Value Research to ease the investment decision-making process.

Paytm Money is headquartered in and operates from Bengaluru. Its 150+ member team is led by the company’s Whole-time Director – Pravin Jadhav. Paytm Money aims to become a full-stack investment & wealth management services company. The app was launched earlier this year and allows customers to buy and sell mutual funds and managed portfolio from their smartphones.

How to invest using UPI:

  1. Install UPI payment App on your phone

    To complete the transaction via UPI, please ensure that you have a BHIM UPI supported payment app like Paytm (or any other app) installed on your phone.

  2. Ensure that you are making payment using the UPI ID or VPA, which is linked to your verified bank account on Paytm Money

    Please be aware that your registered & verified bank account (associated with Paytm Money) must be linked with your UPI ID (e.g amit@paytm or 98XX45XXX0@upi or name@upi), for a UPI Payment to be successful.

For security reasons: If you try to make UPI payments from non-linked bank account, your transaction will fail.

Here’s where you will see the UPI payment option on payment screen:

Steps to Invest via UPI

  1. Choose UPI in the payments section
  2. Select your preferred bank account
  3. Enter your UPI ID
  4. Authorize the transaction by entering your UPI pin on corresponding UPI app
  5. On confirmation of payment, your investment will be successful.

And you are done!

It takes only few seconds to make UPI based mutual fund investments on Paytm Money. Give it a try!

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