In this Article:1. About Paytm Money2. Why should you choose to Invest through Paytm Money?3. What are the Limitations of Investing through Paytm Money?4. How to Open a Demat Account with Paytm Money?5. Conclusion
People in India have started realizing the benefits of investing in stock markets and mutual funds. They no longer look at these financial instruments as something meant only for rich and experienced investors. With the increasing popularity of financial markets in India, many platforms have started offering investment services to their users. One such platform is Paytm Money, a wholly-owned subsidiary of One97 Communications Ltd. offering discount brokerage and investment advisory services.
About Paytm Money
Launched in 2017, Paytm Money Ltd. is a discount brokerage firm, which is wholly owned by the largest digital services mobile platform, One97 Communications Ltd. (parent company of Paytm). Paytm Money is a highly secure and authentic investment platform as it is a SEBI-registered stockbroker, has a depository participant membership of CDSL, and is also a member of BSE & NSE. Paytm Money initially started as a direct mutual fund investment platform, expanded to equity trading, IPO investment, pension schemes, digital gold investment, F&O trading services, etc. Paytm Money has its own web trading platform and mobile trading App. It offers a seamless trading experience to its users. With its low-cost investment services, Paytm Money has served over 60 lakhs investors to date. Apart from offering discount brokerage services, Paytm Money is also a SEBI-registered investment advisor. It offers its advisory services in the form of investment packs that consist of 3-5 mutual funds as per the needs and goals of the investors. Paytm Money also provides users access to informational blogs, the latest news, and announcements on its platform. These blogs aim to spread investor awareness and help them to make better investment decisions. Paytm Money charges one of the lowest trading fees in the industry. It offers mutual fund services and equity delivery trading free of any charges. In a short span of time, Paytm Money has launched pioneering products & services and has emerged as one of the fastest-growing brokerage platforms.
Why should you choose to Invest through Paytm Money?
Paytm Money has been in existence for the last 4 years, providing a wide range of mutual funds and other assets, a detailed tracking system, and the complete investment process through its online platform. The features and services offered by Paytm Money are completely user-friendly and there are no hidden charges involved. Some of the features of Paytm Money that makes it one of the best investment platforms in India are as follows:
- Ease of Use: Paytm Money allows you to invest your money in an easy and simple manner. The whole process beginning from creating your account to trading and investing is very simple. You just need to link your Aadhar card to your account, complete your e-KYC process, and you will be able to trade in no time.
- All-Bank Support: If you are planning to open your trading account with Paytm Money, you need not worry about the bank you have an account with. Paytm Money supports each and every bank present in the country.
- Low Brokerage: Paytm Money has been able to attract investors to its platform due to the low brokerage fees charged by it. Paytm Money charges a minimum of 0.05% of turnover or Rs. 10 for intraday equity transactions, a minimum of 0.02% of turnover or Rs. 10 per executed order for futures trading, and flat Rs. 10 per executed order for options trading. Further Paytm Money charges only Rs. 0.01 per executed order when you take delivery of shares in your Demat account.
- Privacy & Security: One of the biggest concerns that investors have is with regard to the privacy and security of their data, funds, and transactions. Paytm Money offers various safety features on its platform. You can prevent unauthorized access to your investment account through 2-factor authentication with Paytm credentials, and fingerprint and pin-protecting your account. Paytm Money also offers bank-level data protection by ensuring that your money moves directly from your bank account to mutual fund companies and back.
- Wide Range of Products & Services: Paytm Money provides you a platform through which you can access a wide range of financial products like pension schemes, Equity trading, IPO investment, ETFs, digital gold, F&O trading services, and many more. Through Paytm Money, you can now easily apply for IPOs of companies. Additionally, Paytm Money also offers its users good quality advisory services regarding investments.
- Informational Materials: Paytm Money may not offer personalized advice on where you should invest, it provides you access to its blog section where the latest market trends are analyzed on daily basis, product launches are announced, capital market news are displayed, and thus investors are kept well-updated with the latest news and happenings surrounding the financial markets.
What are the Limitations of Investing through Paytm Money?
Though Paytm itself is one of the leading Fintech companies in India, Paytm Money is still in its development stage. As a result, if you choose to invest through Paytm Money, you may have to face the following limitations:
- No Branch Support: As of now, Paytm Money is completely focused on providing its services through only the online mode. Paytm Money does not branch out into the in-person transaction scheme, and thus it lacks branch support.
- Non-Availability of Services: Being still in the development stage, Paytm Money as of now is not offering services such as Margin Trading, Margin against shares, and commodity & currency trading. Furthermore, it is not offering advanced order types like Good Till Cancelled (GTC), Basket Order, etc. on its platform.
- Weak Recommendations: Although Paytm Money is providing good quality mutual fund portfolio recommendations, it does not advise its users in any other plans. The users have to analyze and evaluate their investments on their own. This acts as a major limitation for first-timers and inexperienced investors.
- Other Charges: The trading brokerage charged on Paytm Money may be one of the lowest in the industry, but it also charges other fees from its users. These include digital KYC charges of Rs. 200, Annual Platform Fees of Rs. 300 p.a., Call & Trade Order of Rs. 300 per executed order, Payment Gateway Charges (Net-banking) of Rs. 10 for each fund addition, and other charges such as overdue interest charges, physical statement courier fees, Demat Charges, etc.
- SIP Skipping: Paytm Money does not provide any backup option in case you miss your SIP payment. It has often been noticed by users that once you skip your SIP, Paytm Money offers you no option to continue with the plan.
How to Open a Demat Account with Paytm Money?
The process to open your Demat Account is quite simple on the Paytm Money platform. You just need to follow the below steps:
- Download the Paytm Money App or visit its website.
- Click on the “Start Investing” button. Provide your mobile number and e-mail id.
- You shall receive a call from the Paytm executive and receive a link on your registered mobile no. and E-mail id.
- Click on the link sent to you and complete your digital KYC process.
- Upload the documents as per the requirements of the platform for the verification procedure.
- After verification of all your documents and registration process, your account will be opened within one day and then you can start trading.
Paytm has become a complete and comprehensive wealth management service with its entry into the stock brokerage industry. Although Paytm is a well-established company, Paytm Money has its own benefits and limitations. Paytm Money faces tough competition from companies such as Zerodha, Groww, Upstox, etc. While Paytm Money provides user-friendly brokerage charges and fees, and strong mutual fund portfolios, it seriously lacks in areas such as customer service and advisory services. Paytm Money has been able to attract a loyal set of user-base due to its brand name and simplicity, but it still has a long way to go.