ET Money logs Rs 2,000 crore in mutual fund sales on app

The app has added multiple features to become a full-service financial services provider on the phone over time.
NEW DELHI: ET Money has clocked Rs 2,000 crore of mutual fund sales on its app, registering a nearly twentyfold increase in sales of the financial product over the past fifteen months.

The online financial services platform had started offering investors the choice to invest in direct mutual funds a few months ago and has witnessed exponential growth ever since.

“The growth in value of transactions is due to the pace at which we have launched innovative offerings for the customer and the addition of direct mutual funds to our platform,” ET Money’s chief executive officer Mukesh Kalra said. ET Money’s ability to provide customers a wide range of solutions, including loans to meet short-term funding requirements had increased the platform’s credibility and users confidence in the app, according to Kalra.

The Times Internet-backed company started operations two years ago as an app that linked into the user’s SMS log and enabled him/her to maintain a roster of monthly expenses. It has added multiple features to become a full-service financial services provider on the phone over time. Times Internet is a subsidiary of BCCL, the publisher of this newspaper.

Within a short span of time, ET Money has struck collaborations with over twenty asset management companies to offer a range of over 1,000 mutual fund schemes. It also has a tie-up with RBL Bank to provide loans to customers and recently introduced a liquid fixed deposit scheme that offers higher interest rates in comparison to traditional savings accounts.

“We are aiming to grow to Rs 5,000 crore of mutual fund transactions in the next 12-18 months,” Kalra said, expressing confidence that the movement towards investments in financial assets by people who have disposable incomes will create the right conditions for his business.

Over the last 18 months, ET Money has introduced a slew of industry-first offerings like SmartDeposit with Instant Withdrawal, Paperless KYC, One-tap Portfolio Buys, SIP Registration without First Installment and Option to Skip SIP Installments.

It has also launched a unique feature to enable existing investors save agent commissions on their existing mutual fund investments by instantly allowing them to switch to direct plans.

With an aim to play an integral role in a modern Indian’s financial life, ET Money has expanded its offerings providing instant personal loans through its app along with Insurance products via ETInsure. This has helped to grow it’s total transactions across all services to an annual figure of over Rs.2,100 Crores which is growing at 200% every six months, the company claims. The ET Money app is available on Android or iOS.


Now Paytm Money users can track all their mutual fund investments on its app; claims over 1 million customers

Mutual Fund, Mutual Fund Performance In 2018, Equity Mutual Fund, Large Cap, Mid Cap, Small Cap, ELSS, Top Gainers Fund, Top Losers Fund

Paytm Money claimed of registering over 1 million users within six months of launch.

Popular online payment platform Paytm has said that its users would now be able to track the performance of their mutual fund investments on its subsidiary portal Paytm Money for free.

Investors would have to upload their Consolidated Account Statement (CAS) generated via Karvy Fintech on Paytm Money to track their all investments in their portfolio on the Paytm Money app, the company said in a statement.

Paytm Money claimed of registering over 1 million users within six months of launch.

Mutual fund investors putting their money via multiple channels including asset management companies, banks, advisors and distributors don’t get to look at the performance of their investments cohesively under a single platform.

Investors who haven’t invested via Paytm Money app can also track their daily portfolio performance irrespective of their channel or the mode of investment.

“We received many requests & feedback from Paytm Money users to be able to import their external investments to our platform. This assists an investor in keeping track of all investments in one place, further helping in their investment decisions,” said Paytm Money whole-time director Pravin Jadhav.

Paytm Money claimed to have partnered with 34 asset management companies covering over 94% AUM of the mutual fund industry.

Paytm’s mutual fund arm operates from Bengaluru and has a team of over 250 members Paytm Money, which aims to become a full-stack investment and wealth management services company, offer users mutual fund investments starting with Rs 100 via systematic investment plan or lump sum mode.

Recently at the World Economic Forum in Davos, Paytm’s chief financial officer said that the company is looking at expanding to 1-2 more developed markets this year. He told Reuters that the company has already found its footing in Canada and Japan while many of its commerce and financial services businesses have started to generate revenue and profits.

The company is also reportedly planning to expand into lending and credit cards services.


Mutual Investment is Required in “It’s Their Job, But It’s Your Career”

Robert Segall, author of the new book It’s Their Job But It’s Your Career: The Underground Guide to Career Success, is on a mission.

A veteran human resources executive and founder of human resources firm Career Underground, Segall sent me a review copy and explained his inspiration for the career guide for professionals. He noted that the contract between employee and employer is broken. That viewpoint on the implicit employment contract resounds throughout Segall’s prescription for fixing today’s career ailments. Your employer has a responsibility to you, but so do you for achieving your career.

Being good at your job does not mean you are good at your career. In fact, early on in the book, Segall lists ten reasons why we don’t talk about career, as well as an example of how our collective devaluation of career direction can lead to organizational direction.

He offers an account of human resources using lower salaries because people are seen as a cost. He cautions:

“When we become more value to ourselves, we become more valuable to our employers as well. It’s a mistake to think that we are simply more expensive. Instead, we must remember that our value comes from our effect on the workplace and not just the work product….We have failed to recognize this perspective of career as a mutual investment…..”

I tried to imagine how this book best serves its intended audience. The solutions describe enterprise-level environments in general, but they can fit smaller firms more susceptible to keeping employees motivated when advancement opportunities vary wildly. The ideas can be a starting point to how to develop employees to imagine their careers, even if it may mean moving forward from a firm.

That kind of move in the right context can broaden a network for a smaller firm; a win-win aspect. That perspective permeates the ideas Segall advocates. The end result is a bright tone in between the talks about controlling your career, such as this passage:

“We’re in a world filled with people who have no interest in conflict with one another and would rather agree on nearly everything of substance and matter. We seek to be respected, to be able to come together (or apart) as we please. We want our future world to live as brightly as the golden ages of the past…. This globally integrated world creates opportunities for each of us to connect and do business, if only we have the creativity and initiative to meet the opportunity.”

That win-win perspective enhances any encouragement in taking charge of your networking and skill development:

“…if people around us are generally good and want to help us if they can, then it is our responsibility to engage with them as part of our career development.”

The cost of lost engagement can be high. Segall notes what can result from a dysfunctional process in an organization, such as the cost of a poor recruitment program:

“The dysfunctional employer will have to explain to its remaining workforce why it can’t keep its best talent in its ranks, or if it buries its head in the sand and ignores the absence of its key personnel, the staff will be well aware of the corporate dysfunction and the exit trend will continue.”

I can imagine someone giving this book to an employee to show some ideas to what to expect from career management in general. Or it can be given as an inspiration on what a good workplace should promise to its workforce.

Budding entrepreneurs may also find inspiration in the text. As a matter of fact, I recall a conversation with an interested professional that he felt uncomfortable charging someone for his services – comments from Segall can positively inspire entrepreneurs to get past such psychological hang ups:

“It doesn’t matter what you do for a living. You have skills to offer, and they are part of a solution. The solution you choose to work on shows where your passions lie.”

Entrepreneurs can combine this thought with those from Adrienne Graham’s excellent No You Can’t Pick My Brain.

Regardless of the reason, you should read this book to learn why win-win thinking can enhance and bring value to your teams.


Mutual fund SIPs can be for long-term and short-term goals



I am 37 and earn Rs. 12 lakh per annum. I have a pure-term insurance of Rs. 50 lakh from LIC and health insurance ofRs. 10 lakh from National Insurance. I also have a home loan of Rs. 15 lakh and car loan of Rs. 2.4 lakh. Every year I invest Rs. 75,000 in Edelweiss Tokio’s (top 200 and large cap) unit-linked investment plan (Ulip). I and my wife invest Rs. 1.5 lakh each in Public Provident Fund (PPF). I have invested Rs. 26 lakh in various post-office savings schemes including National Savings Certificate (NSC), Kisan Vikas Patra (KVP) and monthly income scheme (MIS) . I also have a recurring deposit (RD) of Rs. 5,000 per month in a post office account. Kindly suggest, what else I can do for my 11-month-old son’s future.

—Satyajit Dutta

Any portfolio construction has two main components—insurance and investment. The main purpose of insurance is to ensure that the investments run smoothly, i.e., in case of death the insured person’s family can maintain financial well-being as well as protect the investments for future financial goals.

Ideally, the insurance cover should be enough to provide for your financial goals post loans and liabilities. As a thumb rule, 6-8 times your annual income is a good goal for the sum assured. In your case, you have term insurance. But considering the net of loans, the sum assured is not adequate. You can consider increasing the term insurance accordingly. You have adequate health insurance cover, but make sure that your child is covered in the plan. The insurances need to be reviewed periodically to stay in line with goals.

In investments, it appears you that you are a conservative investor. Your portfolio is mostly debt, comprising PPF and post office investments like KVP, NSC, MIS and RD. The equity flavour is only from the one Ulip. The key to any investments is to beat inflation over the long term.

This becomes even more important for young investors who have many milestones to achieve, and outperforming inflation becomes critical. You should take a risk profile test to understand your risk appetite, and based on that increase your equity exposure. While that may expose you to more risk, it also delivers superior inflation-adjusted returns if equities are held for a long time.

You can classify your financial goals as short term and long term. Short-term goals can be assigned to debt securities such as bank RD, NSC and KVP; which are due for maturity.

You can also consider monthly investments in mutual funds via a systematic investment plan (SIP). This can be done for short-term as well as long-term goals.

For short-term needs consider ultra short-term and short-term debt funds. For long-term needs like child education and retirement, you can create a combination of large-cap, multi-cap, mid-cap and even hybrid equity funds. The performance of these funds needs to be monitored regularly.