Paytm Money launches wealth and investment advisory marketplace

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Paytm Money, the wealth management division of digital payments major Paytm, on Tuesday said it is creating a wealth and investment advisory marketplace on its platform to offer curated advisory services and products to retail investors.

Paytm Money has partnered with investment startup WealthDesk to offer investment portfolios called ‘WealthBaskets’. A ‘WealthBasket’ is a custom portfolio of stocks and exchange traded funds (ETFs) created by Securities and Exchange Board of India (Sebi)-registered investment professionals.

These stock portfolios are built around specific investment themes. Paytm Money users will be able to invest in multiple ‘Wealthbaskets’ via the free starter pack or by subscribing to premium monthly packs available.

Capital-markets focused fintech, smallcase, which recently raised $40 million as a part of its Series C round offers investment portfolio of stock, called ‘smallcases’.

“Paytm Money is building an advisory marketplace that will be a one-stop-shop to cater to the unique needs of this audience. WealthDesk is our first major partner in this journey, and we are excited to offer WealthBaskets, curated investment portfolios created by subject matter experts. 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 Paytm Money’s chief executive, Varun Sridhar.

With the launch of the advisory marketplace, Paytm Money is expected to target young and millennial investors, who make up for more than 70% of its user base at present.

“Our partnership with Paytm Money aligns with our vision of democratizing wealth creation on top of broking through flat subscription fee-based WealthBaskets. This takes away the friction of percentage-based investment products and opens up premium yet low-cost wealth creation opportunities to every Indian. Analysts create these baskets after extensive research of the company fundamentals and market conditions. WealthDesk is continuing to expand its ecosystem with several such partnerships in the coming months,” said Ujjwal Jain, founder and chief executive officer, WealthDesk.

Earlier this month, Paytm Money said it has more than 6.6 million users. It saw more than 210,000 demat accounts being opened on its platform, in less than eight months between August last year and March 2021.

Meanwhile, Paytm’s arch rival PhonePe has applied for a stock broker’s license, confirmed founder Sameer Nigam to Mint recently.

The article was first published on livemint.com.