Bengaluru-based One97 Communications on Tuesday launched Paytm Money app for mutual fund investments, partnering with 25 asset management companies.

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The mutual funds app will enable the customers to buy and sell mutual funds and manage their portfolio from a mobile phone.

Keen investors can download and start using the app from Tuesday and is available on Apple's app store and Google Play Store.

At the beginning of 2018, the company received the approval from the Securities and Exchange Board of India (Sebi) to act as an investment adviser.

Despite being a registered investment adviser (RIA), the company will only facilitate the buying and selling of investments, a Mint report said.

Mutual funds have been a popular investment route, as they mix the benefits of the returns from either a fixed or a recurring deposit in a bank and the gains achieved by the particular set of funds in the stock market.

Last week, Warren Buffett's Berkshire Hathaway picked up stake in Paytm where sources have told PTI that Berkshire will pump around Rs 2,500 crore into Paytm, valuing the Indian company at over $10 billion. The reason for the deal is yet to be disclosed.

Here's what we know so far about the app:

Paytm Money is offering systematic investment plans (SIPs) for as low as Rs 100, aiming to target individual investors in tier two and three cities, Moneycontrol reported. The firm has claimed that 8,50,000 users have already registered on the platform as they have been allowing customers to register on its website, reports said. SIP is when the fund house will deduct a set amount every month and invest it in the chosen mutual funds package.

The company in the beginning will offer all schemes and direct plans from the 25 mutual fund houses, according to Mint.

The company will not charge fees from their customers, the Mint report said. The company is unlikely to earn any commissions as it is selling direct plans.

For registration, thecustomers will be required to fill the Know Your Customer (KYC) details, which will be displayed every time one checks out a scheme, before actually buying it, reports mentioned.

Pravin Jadhav, whole-time director at Paytm Money, told Mint that the company will soon launch a feature called‘investment packs’. The feature will recommend a basket of schemes, depending on the client’s profile.

First Published:Sept 4, 2018 12:57 PM IST