New Delhi: ETMoney, the largest app-based seller of financial products, is offering 1.7 crore mutual fund investors the option to convert their existing plans on its application, which it says will lead to savings on annual commissions they are currently paying.
The financial products platform, which has over 40 lakh users and generated over 2 crore investment orders within barely two years of its launch, has already converted mutual fund investments of Rs 150 crore for existing users into direct plans leading to savings, according to the company’s chief executive officer Mukesh Kalra.
“We are offering people the ability to save up to 1.5 per cent fees every year on their mutual fund investments, which they pay as commission by switching to direct plans on our app,” Kalra said.
Direct plans charge lower fees to customers for investing in mutual funds as opposed to regular plans where fees are charged for fund management services provided by the mutual fund company as well as by the distributor from whom the mutual funds are purchased.
Kalra said ETMoney had generated five times the existing investment orders and increased users substantially ever since it launched zerocommission mutual funds 30 days ago on its app after entering into tie-ups with over 20 mutual fund companies.
The app offers a range of 1,000 mutual fund schemes that one can invest in without paying commissions.
Kalra insisted that ETMoney was offering a one-stop-shop to all mutual fund investors to convert their investments into plans that lead to greater savings, helping them avoid the ‘tedious’ process of approaching every mutual fund company individually to convert their plans.
“You just need to upload your mutual fund statement on the app and within 30 seconds you will be shown the option to shift your regular funds to direct plans,” Kalra said.
Source: Economic Times