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Introduction
Paytm Money is a new company which has launched mutual fund investment platform. They are charging a very small fee for a purchase and redemption of the mutual fund. This fee is called a transaction charge.
The mutual fund transaction is free at Paytm Money if the amount invested is more than Rs 10,000. If the amount invested is less than Rs 10,000, then it will cost you Rs 20 + GST. The transaction fee is charged by Paytm Money when you make a purchase or a redemption of the mutual fund. You will not find this transaction fee when placing orders for mutual funds on other platforms like Zerodha Coin or ETMONEY but if you are using ICICI Direct or HDFC Securities platform then there іѕ no transaction fee charged here also because these platforms don’t charge any fees but they do levy brokerage charges which can go slightly higher than the transaction charge at Paytm Money
Paytm Money Mutual Fund Review
Paytm Money charges for Mutual Fund
0.5% of the transaction value (capped at ₹ 20 per order). For transactions done through UPI, an additional flat fee of ₹ 2 is applicable.
Mutual Fund charges in Paytm Money
1. Transaction charge: This is a one-time fee for executing the mutual fund purchase or sale transaction. It ranges from Rs 9 to Rs 20, depending on the type of mutual fund.
2. Systematic Investment Plan (SIP) charge: A nominal fee of Rs 50 per month is charged by Paytm Money when you invest in SIPs.
3. Maintenance fee: An annual fee of 0.5% per annum on your total investment amount is charged by Paytm Money as maintenance fees for each mutual fund held in your account with them.
| Paytm money | Charges |
|---|---|
| Transaction charge | Rs 9 to 20 |
| Systematic Investment Plan (SIP) charge | Rs 50 per month |
| Maintenance fee | 0.5% per annual |
| Account closure charges | Rs 200 plus applicable taxes |
Paytm money mutual fund benefits
1. Paytm Money Mutual Fund offers access to multiple mutual funds from some of the most renowned asset management companies like ICICI Prudential, HDFC and Reliance at a much lower cost.
2. Its diversified mutual fund portfolio gives investors an opportunity to diversify their investments across various funds according to their individual needs and risk appetite.
3. The convenience of online investment process allows investors to make quick investments with just a few clicks without having to go through cumbersome paperwork or hassles of any kind.
4. Its digital interface helps investors monitor their investments easily, anytime and anywhere, allowing them to take informed decisions quickly.
5. With its automated feature, investors can setup SIPs and track their investments on a real-time basis with regular email notifications for the same.
6. With free unlimited transactions at zero brokerage charges, investors get more control over their finances in addition to potential gains from these high return mutual funds.
How to invest in paytm money mutual funds-
Making a mutual fund withdrawal is easy, and you don’t have to pay extra fees. If you’re looking to make a mutual fund withdrawal with Paytm Money, the process is:
1. Login to your Paytm Money account
2. Select ‘Mutual Funds’ from the menu at the top of your screen
3. Select ‘Withdrawal’ from the drop-down menu that appears in Step 1
4. Enter the amount you want to withdraw from your account (this will be displayed in Indian Rupees)
5. Press ‘Submit’ and your transaction will be processed within minutes
Paytm Money is a new company which has launched mutual fund investment platform. They are charging a very small fee for a purchase and redemption of the mutual fund. This fee is called a transaction charge.
Paytm Money is a new company which has launched mutual fund investment platform. They are charging a very small fee for a purchase and redemption of the mutual fund. This fee is called a transaction charge. The transaction fee is charged by Paytm Money when you make a purchase or redemption of the mutual fund from their website, mobile application or through any other channel provided by them for this purpose only
The mutual fund transaction is free at Paytm Money if the amount invested is more than Rs 10,000. If the amount invested is less than Rs 10,000, then it will cost you Rs 20 + GST. The transaction fee is charged by Paytm Money when you make a purchase or a redemption of the mutual fund.
If you’re a Paytm Money user, you know that the service is pretty awesome. You can send money to people, pay their bills and get loans from them—and it’s all done in real time.
But what about when you want to withdraw funds from your mutual fund? You might be wondering why this would be an issue for you or your friends. Well, if the amount withdrawn is more than Rs 10,000, then it will cost you Rs 20 + GST. If the amount withdrawn is less than Rs 10,000 however, then it will cost you just Rs 20 + GST too. But if the amount withdrawn is between Rs 10,000-50,000 then it will cost you Rs 50 + GST. And if the amount withdrawn is between Rs 50,000-1 crore then it will cost you Rs 100 + GST!
You can see where this is going right? It’s all because of how much money each transaction costs Paytm Money. So if one day your friend wants to withdraw some funds from his/her mutual fund and that transaction costs Paytm Money over Rs 100 then they’ll have to pay extra charges on top of their normal withdrawal fees which could end up costing him/her more
You will not find this transaction fee when placing orders for mutual funds on other platforms like Zerodha Coin or ETMONEY. However, if you are using ICICI Direct or HDFC Securities platform to buy or sell MF units then there is no transaction fee. These platforms don’t charge any fees but they do levy brokerage charges which can go slightly higher than the transaction charge at Paytm Money.
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Apart from the transaction fee, paytm money levies an exit load if you redeem within 1 year of your investment made in a liquid fund. The exit load can vary from 0.001% to 2% depending upon the fund house and the type of liquid fund you have invested in.
Apart from the transaction fee, paytm money levies an exit load if you redeem within 1 year of your investment made in a liquid fund. The exit load can vary from 0.001% to 2% depending upon the fund house and the type of liquid fund you have invested in.
This means that if you invest Rs 10 lakh in a particular liquid fund with an annualised return of 7% per annum for 10 years and then redeem it before maturity (say after 9 years), there will be no exit load since it is considered as early redemption and hence exempt from such charges.
On buying and selling equity funds there are no direct charges levied by the MF houses or Paytm Money but there will be some taxes and fees which you need to check at time of investing in equity funds
On buying and selling equity funds there are no direct charges levied by the MF houses or Paytm Money but there will be some taxes and fees which you need to check at time of investing in equity funds.
In case of mutual fund units, there is no transaction charge on mutual fund units as well as Redemption charges.
Conclusion
Paytm Money is a great new platform for mutual fund investors. It provides a lot of benefits and advantages over traditional MF companies like Reliance, ICICI Bank and HDFC bank. However, if you are looking to invest in equity funds then you need to be aware that there will be no transaction fee but there will be some taxes levied by the MF house which needs to be checked at time of investing in equity funds.
