NEW DELHI: Welcoming SEBI’s announcement with regards to buying of mutual funds through mobile wallet, the Gurgaon based mobile wallet company- MobiKwik said that the development will encourage habit of savings among the young investors and it is in process of forging tie-up with Asset Management Companies (AMCs) to offer their products.
“Possibilities are endless and SEBI has just taken the first step in making fintech market even bigger and powerful in India. This will not just make investing in mutual funds easier but also promote the habit of savings amongst millennial. People as young as 19-20 years old want to plan their investments and paying a sum of Rs 500 or Rs 1000 a month, that too on your smart phone, is just very convenient for such a big goal,” said MobiKwik Founder and CEO Bipin Preet Singh.
The regulator’s decision will help channelize households’ savings into capital market and promote digitalization in mutual funds for the young generation, Mr Singh added. As of now, 42 fund houses in India manage assets worth Rs 19 lakh crore, out of which, Rs 5.54 lakh crore belongs to mutual funds.
In addition to this, MobiKwik is in talks to partner with non-banking finance companies (NBFCs) to offer micro-lending to its users and is also looking at launching a mutual fund portfolio going forward. The company is focusing on the offline category and is looking to expand the merchants on board to 10 million by end 2017 from the current 1.5 million.