Investing in direct mutual funds with Paytm Money can be a little tricky. Especially because you are going to handle it by yourself. If you are thinking to invest in a direct mutual fund through Paytm Money. Then it is really important to understand it properly otherwise you might gonna lose a lot of money. Just by selecting and investing in the wrong mutual fund policy. This post is going to be most informative for you because we shall discuss all the aspects to invest in direct mutual funds through Paytm Money.
Managed by asset management professionals the mutual fund has a popular investment base. Investors are keen to invest in direct mutual funds nowadays. So it is important to know all the details about direct mutual funds and how to handle them. As it is also important to gain knowledge about the investment plan before putting your money into it.
FAQ about Invest in Direct Mutual Funds with Paytm Money
Yes, this website is a safe and dependable online discount broker. It offers stock, mutual funds, and also some other financial products in which you can invest your money to grow.
Zerodha charges a maximum of Rs 20 per trade. While Paytm Money charges a maximum of Rs 10 per trade. Both brokers are members of the Discount Brokers Association. As we compare Paytm Money to Zerodha. Zerodha has a higher overall rating where Paytm Money is rated 4 out of 5 whereas Zerodha is rated 4.5 out of 5.
The website charges 200 rupees for every account opening. They do not charge any extra money for the mutual funds.
You can pay for your investments using the Paytm app’s AutoPay (one-time bank mandate) feature. It allows you to make one-click investments. Alternatively, you can invest using your verified bank account’s UPI, NetBanking, and Debit Card. At Paytm Money, you cannot invest with a credit card or a wallet.
What is a Direct Mutual fund?
Before discussing direct mutual funds we need to know about the expense ratio. As both the terms are related to each other.
Expense ratio: The annual fee that the company charge is the expense ratio. The company collects it from its investors. That means the annual fee and expense ratio is the same thing. It covers not only the management fee but also the operating fund fee. It is a small percentage of your mutual fund investment. This is a predefined amount counted yearly. I describe this briefly otherwise you won’t understand the direct mutual fund clearly.
Direct Mutual Fund: When you buy different types of mutual funds directly from the company. Without any influence of the broker in between, then that trading considers a direct mutual fund investment. Now it’s upon you which direct mutual funds you want to choose. Those direct mutual funds could be profitable in near future. When you invest money through a direct mutual fund the whole money got invested by you.
Mutual fund vs Direct mutual fund
Suppose you put your 100 rupees in a mutual fund. Now you are thinking that the whole money is invested in the mutual funds. But that is not the truth as 1% or 2% of that money has been already deducted as the Expense ratio. But in the case of a direct mutual fund if you put 100 rupees in a direct mutual fund the whole money got invested in it. You might think 1% or 2% is not that much of a percentage to pay. But when you actually calculate it at the end of the policy’s maturity time, you will find that the 1or 2% contains a minimum difference of 1lakh or maybe more than that. To save that money many investors consider investing through direct mutual funds.
How to sign up or login in Paytm Money
It is quite easy to open an account in Paytm Money. You just need to follow some steps and within just a few minutes your account is ready. Here I will guide you through all the steps so that you can understand it very easily and you can also open an account by yourself.
In the following, I provided you with a direct link so that you could visit the website directly.
Click here to visit the website directly
Sign up process in Paytm Money
As soon as you visit the website, there will be a signed-up word on your right-hand corner. You have to click on it. Then you will see a page will open which looks similar to the image which I have attached in the following.
Give your mobile number in the given place. Then there is an option of putting an email id. Though giving an Email-id is completely optional. If you do not want to give your Email id that’s completely ok. Then click on next.
As you see in the above image the website then asks for a password. To confirm the password you have to write it again in the next rectangular box. After completing both the steps you have to proceed to the next step by clicking on the next which is given below.
Write your name and surname in the given space and go for the next step.
Now write your date of birth and click on the next.
Paytm Money will send you 6 digit OTP which you have to put in the given place. If you are using a mobile phone and PC. BUT if you are using only mobile then it will be auto-generated. Then you will see the website will take a little time to open an account.
Login/ Sign in process in Paytm Money
If you already have an account in Paytm Money then you don’t need to sign up. You just need to click on login. In the login process, you have to put your email id which you have used previously while account opening along with the password. As you have completed all the steps of account opening correctly, it won’t be any problem to reopen that account.
KYC in Paytm Money
If you want to invest through Paytm Money, first you have to make sure that your account is verified by KYC verification. I am going to explain all the steps elaborately. So that you don’t have to get through any problem while doing the KYC verification.
1st step of KYC verification
After completing the account opening process. You will see there is your name on the very first page and under that, there will be written as “KYC not complete”. As you are intending to complete the KYC process in Paytm Money. You have to click on it.
As you can see on the above page. There is a place to put your PAN number. You have to put your PAN number there. Then click on the blue arrow just beside the pan number. Yes, here PAN card is going to be used to do your KYC verification.
2. PAN verification
As soon as you put your PAN number on the given space. There will be a new page opened. You will see your PAN number is already there. Now you have to put your pan card’s picture as per the PAN number which authenticates your identity. You have to be careful while you are uploading the PAN card’s picture as it is very important for the KYC verification. Now click on allow.
3. Personal info
Now Paytm Money will ask you for some personal details such as your name, your father’s name, your mother’s name, and some other information. You have to put it according to your PAN number. As you are using your pan card for your verification. Now click on generate.
4. Signature verification
On the next page, you have to verify your signature. To do that you have to put your signature photo in the given place. To proceed further you could write down your signature on a piece of paper and upload it by cropping it according to your preference. Click your picture and click on done.
5. Video verification
Now you have to enable your location as the next step requires it. Then the Paytm Money website will send you a four-digit number which you have to tell while opening your front camera on your PC or your mobile phone. It is going to be a video that you have to upload. So keep that in mind that it is not a photo it’s a video that you have to upload.
6. Address verification
The next step is to verify your address. You will do that by the verification of any of the identity proof which is suggested by the website. The website will give you four id prove options to choose from. After choosing one of the id proof options. You just need to click a picture of that ID proof directly or choose it from any previously clicked image. Now upload it. But make sure that the picture is clear enough to understand otherwise it might gonna take another round of clicking pictures. Now you have to answer all the address-related queries asked by the website in which your village or state name your city name is also going to be mentioned.
Now add a nominee
Process to invest in Direct Mutual Funds with Paytm Money
Before discussing the process, it is important to know that if you intend to invest in mutual funds. You have to open an account under Paytm Money. The next step is to do the KYC verification properly. Then you have to link your bank address or your UPI with your Paytm Money account. Only after that, you can buy the mutual funds. If you are a regular buyer of mutual funds then it won’t take too long for the KYC. BUT if you are buying it for the first time then it might take 5 to 8 working days.
There are two ways to invest in direct mutual funds through Paytm Money. In the following, I shall discuss both ways. So that it will be easy for you to understand which one is better for you as an investor.
The first way to invesment in Direct Mutual Fund
Go to Google Chrome and write Paytm Money on it. As soon as you press the enter, you will see the Paytm Money website has arrived. Then you have to scroll down. As you start to scroll down you will see there are so many options like Stock Market, Mutual Fund, and NPS Retirement Funds. In which you have to click on the Mutual Funds. In the following picture, I have highlighted the place where you have to click.
There will be a new page arrived on your PC that will contain every detail about the mutual fund investment. Now write direct mutual fund on the search bar under the mutual fund option. As the direct mutual fund is one of the types of mutual fund investment. Now The website will present all the options regarding direct mutual funds.
As we can see in the following image, there are various types of companies in which you can put your money. You might be amazed after hearing that an investor can put 100 rupees in the SIP of the direct mutual fund.
As you can see there are so many big, small and mid-cap mutual fund companies to choose from. Not only that you can use the filters to choose more wisely and skillfully.
Filters of Direct mutual funds with Paytm Money
In the following, I am going to discuss all the filters available on the Paytm Money website, if you are intending to invest in direct mutual funds this info is going to help you a lot.
The very first option under the filter section is the return duration. In the return duration section, you can select the time that an investor is intending to invest his money.
In this section, the investor can check and choose the money limitation. That means the investor can choose to invest in SIP less than 500 rupees and more than 2000 rupees. Not only that he/she can also choose to stay between 500 to 2000 rupees.
As soon the investor will choose the amount of SIP from the filter by clicking on the Min Investment. He/she will find the suggestive Mutual fund company name has changed. That means when an investor chooses to stay under 500rupees of SIP the Paytm Money website suggest those company which is more profitable to put your money to get better returns.
Rating & Rated by
Rating: In this category, you will find they are ratings such as 5 stars, 4 stars, 3 stars, 2 stars, and 1 star. Five-star companies are those which suggested that the amount is going to be more value investment and more wisely used by the company to give you better returns. It is going to be decreased as you’re going to reduce the stars from5 to 4 to3 to 2. In my opinion, 5 stars and 4 stars rating is going to be the best one to invest in.
Rated by: The very next section under the rating is the rated by section. In which many big companies have given their valuable rating about the company. These ratings are very useful as they help us to analyze a mutual fund’s current situation as well as its future days. In this section, you will find that the direct mutual funds are rated by Morning star and Value Research.
As we know there are many kinds of direct mutual funds such as equity, hybrid, tax saver, and debt. The most surprising thing is that Paytm Money gives you access to all these four categories to choose from. If you want to invest in stocks you can do that by adding the filter or you can choose the other 3 categories as well. Suppose you want to invest in equity hybrid or any of these four categories you just simply click on the category which you are intending to choose. The website will provide the best mutual fund which lies under that category. You can also use a 5-star rating in the section to get the best of the best direct mutual funds by yourself.
I hope you get the idea clearly as I have discussed all the filters.
The second way to invesment in Direct Mutual Funds
Now suppose an investor wants to invest in a specific company’s mutual fund but does not know how to do that using Paytm Money. So through this post, I am going to guide you through all the steps to buy any Mutual fund directly by yourself without any fund manager’s influence.
Charges on Direct Mutual fund in Paytm Money
Paytm Money does not charge a single penny on buying or selling on mutual funds. That means if you buy or sell any direct mutual fund on Paytm Money you do not need to pay any extra charges. The website also won’t charge you for account opening.
How to buy Direct Mutual Funds in Paytm Money
Now as we have completed our account opening process and the KYC properly. We are ready to invest the money in the direct mutual fund.
Click on invest now. As soon as you click on it, you shall see the website will provide you with so many options to choose from to invest in direct mutual funds.
As soon as you click on the very first option of the direct mutual fund category. The website will provide you with all the info about that direct mutual fund.
Adjust the time period
Suppose you are interested to buy a certain mutual fund. You will see the investment policy is by default for three years. In this section, you can choose more than 3-years or less than 3-years. But you have to pay a certain amount every month without any skip. You can adjust it by yourself according to your preferences. You are not intended to do it for three years then you can shorten down it by three months or one year.
Returns on your investment
As you change the time period in that case the future return will be shown there. It will be presented through graphs and diagrams. It will also show you if you put this money into any other funds then what will be the result.
Investing date per month
You will also see that the website will suggest you a specific date of the month which will be e best for you to invest in.
After adjusting all the criteria according to your preferences just simply click on invest now or start SIP or Systematic Investment Plan. Click on start SIP or invest now the website will ask you for your mobile number which is linked with the UPC number if it is linked with Paytm it will be much easier for you to invest in and if you want to do net banking the website build also provide you that facility so it won’t be here we use problem to invest in direct mutual funds.
After going through all the important aspects of investment in a direct mutual fund with Paytm. I hope you have a clear view of it. That it is very easy to invest in direct mutual funds using your own brain and your own money. As the website makes it so easy for you to understand how much return you gonna get after that certain time which you are putting your money into.
As the website allows you to put hundred rupees to a maximum of whatever you want as an amount to pay in a SIP of the direct mutual funds. Suppose you have chosen any wrong investment plan in the direct mutual funds then the website will also tell you what is the risk factor and how much risk does it contain to invest in that particular mutual fund. It will also show you the return amount which you are going to get from your investment. So after going through all these aspects, I think it is very easy to invest in direct mutual funds. But I shall still tell you to do more research before investing in companies’ direct mutual funds. Paytm money is a reliable website but it’s in your hand about which company you are choosing to put your money.