Financial services platform Paytm has been granted approval by the Securities and Exchange Board of India (Sebi) to launch ETFs via its wholly-owned subsidiary Paytm Money.
The passive funds are listed on the National Stock Exchange (NSE) and the BSE and traded like regular equity shares.
Paytm Money said that it believes ETFs are an “essential part” of an investor’s portfolio and that all Indians should invest in them.
Equity ETFs can be picked up for as little as INR16 (£0.17, $0.22, €0.18); while gold starts at INR44 and NSE 50 (Nifty) ETFs start at INR120.
Simplified investing
Varun Sridhar, who was appointed chief executive of Paytm Money in July, said: “ETFs are investment avenues that everyone should add to their portfolio to earn index or market-linked returns at a lesser cost.
“At Paytm Money, our efforts have been to democratise and simplify wealth management for all and in the case of ETFs also we have simplified investing for everyone.
“We are offering a user-friendly interface along with necessary factors that the user may need to make an informed decision and invest in ETFs of their choice conveniently.”
He said the firm is targeting 100,000 users to invest in ETFs in the next 12 to 18 months.
