Paytm Money launches wealth and investment advisory marketplace
on Thursday launched a wealth and investment advisory marketplace on its platform to offer users a wide array of investment options, curated by investment startup .
Users, on Paytm Money, will be able to access a host of custom portfolios of stocks and ETFs created by SEBI-registered investment managers, and invest in the portfolio they believe in or like.
These portfolios will be centred around 'themes' — such as 'Make in India' or 'Digital India' — and will be backed by research and backtesting. Users will be able to invest in these 'Wealthbaskets' via the free starter pack, or by subscribing to premium monthly packs where they will pay WealthDesk a subscription fee based on the investing strategy.
"With this, Paytm Money offers retail investors an opportunity to invest in ideas, themes or trading strategies they believe in, with low-cost wealth creation strategies, while also removing unnecessary risks," said Varun Sridhar, CEO of Paytm Money, in a press note.
Retail investors, who have poured into the markets in droves, thanks to the proliferation of companies such as Zerodha, Upstox, Groww, and Paytm Money, have mostly invested in mutual funds and the debt markets — staying away from equities because they need a certain level of expertise, as well as regular monitoring. Moreover, to trade according to strategies, users would need to sign up with a brokerage or investment management company, which is quite an expensive ordeal.
Varun Sridhar, CEO of Paytm Money
Companies such as WealthDesk have been democratising that by onboarding strategists from across the board, including day traders, investment managers, analysts economists, etc, and publishing their trading or investment strategies online. Users can sign up with any of these platforms, plugin their online trading platform details, and execute the strategy they like.
Upstox founder Raghu Kumar and professional financier Harsh Agarwal recently launched RAIN Tech, a trading platform that democratises quantitative and algo trading.
Paytm Money expects its latest launch to see a lot of traction from young and millennial investors, that make up more than 70 percent of its user base.
"This takes away the friction of percentage-based investment products and opens up premium yet low-cost wealth creation opportunities to every Indian," said Ujjwal Jain, Founder and CEO of WealthDesk.
The service will be offered to a select set of users on Paytm, before being rolled out publicly, the startup said.
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