Sanjay Bhargava, the man credited by PayPal co-founder Elon Musk as being the brains behind the payment company's low-cost account authentication strategy, is setting up a digital 'utility company' to enable micro investments in mutual funds with minimal cost.
The utility - Bharosa Club - is set up to be a digital platform which will connect even basic bank accounts to all mutual funds through the transfer service companies CAMS and Karvy. To ensure there is zero transaction costs, Bharosa would deploy straight-through processing. Bhargava (58), who has worked on financial inclusion in India, sees Bharosa expanding to a 'buyers' club' where even non-financial businesses will pass on benefits of lower selling costs to the club members.
