Not many of us are used to buying mutual funds using our smart phones, even though there are some apps that facilitate this. But with Paytm, one of India’s largest mobile wallets, set to enter mutual fund distribution in a month’s time, many of us (Paytm claims to have around 300 million customers) would be able to buy mutual funds with a tap of a button. On 5 April, Mint carried a story on what Paytm could offer.
Most seasoned mutual fund investors come from urban areas, and the product has only recently made inroads in semi-urban and rural areas. But nearly half of Paytm wallet’s transactions happen in tier 2 and tier 3 cities, which raises the concern that whether Paytm Money users will be adequately aware of mutual funds as a product and the risks they carry, and accordingly take informed decisions. Will people use the mutual fund platform the way we look at the e-wallet, which is commonly used so far to buy things such as movie tickets? Mint Money takes a look at the three most common questions that Paytm’s customers might have.
