Paytm Money, a wholly-owned subsidiary of Paytm, has introduced a PMS Marketplace for High Net Worth Individuals (HNIs). The marketplace was developed in collaboration with PMS Bazaar, a PMS advisory startup. PMS Marketplace will initially be accessible to a limited number of users before the complete rollout.
The platform provides HNI investors with a transparent and detailed overview of all PMS schemes, making it a trustworthy platform. It revolutionizes PMS investment by making publicly available historical performance data on schemes that would otherwise be unavailable.
In India, high-net-worth individuals have an investible surplus of more than Rs 5 Crore. In 2017, India has around 270K HNIs, with the number expected to rise to about 1 million by 2027. Targeting these investors, who invest in schemes where data is typically inaccessible to the public.
Portfolio Management Services (PMS) is an investing service available to HNIs, with a minimum investment of Rs 50 lakhs mandated by market regulator SEBI. Due to the size of the investment, investors prefer to thoroughly evaluate their possibilities before making a final purchase.
PMS Marketplace will provide crucial parameters for each scheme, including total assets, founding date, benchmark, and fund manager information. The funds listing section illustrates the performance of schemes across various time horizons and in comparison to benchmarks.
As a result, investors may analyze the schemes independently, making their investment journey straightforward and transparent. Investors can consult with experts to better understand their investment process and potential risks. Hence, the marketplace uses technology to provide a 360-degree overview of all schemes on a single platform while also providing a customized understanding of particular schemes, the company said in a press release.
Commenting on the development Varun Sridhar, CEO of Paytm Money, said, “At Paytm Money, we have leveraged technology to make investing & trading efficient and transparent. Extending the same to HNI investors, we have partnered with PMS Bazaar to launch PMS Marketplace, offering a one-stop shop. The availability of data, tech-led product, direct access to PMS experts leading to greater trust will get us closer to making Paytm Money, India’s most preferred wealth management platform.”
PMS Bazaar, founded in 2017 by R Pallava Rajan, Daniel G M, D Rajesh Kumar, and Hammed Rehman, claims to have 25K+ subscribers who use its PMS and AIF (Alternate Investment Funds) solutions. To facilitate investors, the startup provides full investing analytics such as information, comparison, more than 230 PMS strategies, with over 110 fund managers.
Working with HNIs might put a feather to Paytm’s revenue cap despite a lackluster debut on bourses, owing primarily to the company’s loss-making status. The marketplace wants to capitalize on and attract newer HNIs who participate directly in mutual funds, FNOs, and equities, considering HNIs are increasingly prominent in financial markets and their investment size is substantial. Paytm Money has previously introduced a feature that allowed users to enroll as HNI investors in IPOs.