The best part about Paytm Money is in the fact that it carries the brand name Paytm. Now while that provides a huge advantage from a branding perspective, whether it is enough from a functional perspective, we’ll see.
Paytm Money is a mutual fund trading app, facilitating payments through net banking, UPI, OTM. However, it launched its discount broking wing sometime back and is planning to expand its user base towards the stock investors and traders. Paytm Money’s target market happens to be one of the largest population demographics, i.e the young and middle aged. With Paytm Money, the company joints it’s easy to use interface with quality and service standards set by Paytm.
All this while it ventures into the mutual fund app space and further diversifying into the stock broking services in India. Paytm is an Indian company, funded by Alibaba and backed by Ratan Tata of Tata Group.
Here are some of the features and advantages of opening a demat and trading account with Paytm Money:
Paytm’s biggest selling point of its hassle free interface with ease of transactions due to universal availability. Paytm incorporates those brand values in Paytm Money. It is accessible from anywhere, and doesn’t carry a ton of paperwork, and it provides a huge data base of mutual funds and stocks to invest from. Its interface also currently doesn’t sell ads, making it all the more viable, and supports multiple banks making it all the more universal.
Paytm Money tries to provide a single platform to track all of the mutual fund investments, whether it is made through the app or not. This adds to the ease of access and improves user retention, while also establishing itself a player in major market place.
Paytm money has an innovative systematic mutual fund option, where it uses its one time mandate (OTM). It also provides the option of asset allocation, which basically means that you can sort the mutual funds according to the type of assets that you want them to be invested in, be it equity, debt or a mixture of both.
It also provides an option to press pause in your SIP payments, in case you’ve had an expensive month. You can also choose to decrease or increase the amount of SIP, based on your financial viability. The major selling factor in all of this is in the fact that you don’t have to go through a ton of process every time you want to make even a little change in SIP, making Paytm all the more attractive as an investment option.
Generally classified, there are two kinds of plans for Mutual Funds – Regular Plan and Direct Plan. Paytm Money prides itself to be a direct plan provider, which means you don’t have to go through someone else for your mutual fund needs, you can directly select and invest in mutual funds that you want, that you decide meet your investment criteria. Paytm money’s SIP plans also start from as low as 100 rupees, which can be increased at account holder’s discretion.
1.You can't trade in derivatives i.e. F& O segment yet.
2.You don't have the option of Commodity and Currency trading with Paytm Money. May be very soon we'll have it.
3.Being a fairly new player in the stock broking industry, Paytm Money is still to test and prove itsself for high volume transactions and market fluctuations. While popular discount brokers like Zerodha have set trading platforms like \Zerodha Kite\ that have been tried, tested and performed well over the years.
So, it will be good to see how an emerging broker grows amidst a number of existing key stock brokers in India.
For stock broking serices, as this digital investment platform grows in this area, there's more to hear soon about Paytm Money Securities in the coming days. It can give a tough competition to the existing discount brokers, once it launches a full-fledged trading platform to promote its brokerage services. Let's see how this popular brand establishes itself in the stock broker's world.
Like other stock brokers in India, there's a simple process to open a demat anf trading account with Paytm Money.
These are the steps you need to follow if you want to open an account with Paytm money.
|Demat Account Opening Charges||₹0 (Free)|
|Trading Acc Opening Charges||Rs. 200 (One time Digital KYC) + Rs. 300 Account Opening Charges|
|Trading Account AMC||₹0 (Free)|
|Demat Account AMC||Annual Platform Fees of Rs.300|
|Plan Name||Basic Plan|
|Equity Intraday||0.05% of turnover or ₹10 whichever is lower|
|Equity Futures||0.05% of turnover or ₹10 whichever is lower|
|Equity Options||0.05% of turnover or ₹10 whichever is lower|
|Currency Futures||0.05% of turnover or ₹10 whichever is lower|
|Currency Options||0.05% of turnover or ₹10 whichever is lower|
|Commodity Options||0.05% of turnover or ₹10 whichever is lower|
|Equity Delivery||Upto 4x|
|Equity Intraday||Upto 20x|
|Equity Future||Upto 3x|
|Equity Options||Upto 5x|
|Currency Future||Upto 2x|
|Currency Options||Upto 3x|
|Commodity Future||Upto 3x|