FreeCharge, India's leading digital payments platform, today announced the launch of Mutual Funds on its platform in partnership with Reliance Mutual Fund.
With the launch of the facility, users can seamlessly invest in a Money Market Mutual Fund that targets higher returns than those available on savings bank accounts. FreeCharge, known for its 10-second payments, is offering instant redemption of mutual funds at the click of a button.
The entire process from investing to redemption is paperless - all the customer needs is his PAN or Adhaar card number. Customers also benefit from zero transaction charges and zero charges at redemption.
To invest through FreeCharge, all a KYC compliant customer needs to do is enter their PAN number, a few basic details & bank account number and the folio of the customer will be generated. For non-KYC customers, the KYC can also be done online instantly through FreeCharge by using the Adhaar number linked with the subscriber's currently active mobile number.
The initial subscription for the money market mutual fund starts at Rs 500 and further investments can be as low as Rs 100. The scheme will invest in ultra-short term debt funds, which are traditionally safer and return higher post tax returns than FD's and savings accounts.
Commenting on the launch, Govind Rajan, CEO FreeCharge, said, "At FreeCharge we are constantly innovating to bring the best possible payment use cases for our customers. FreeCharge will provide the simplest, intuitive and completely digital process for the consumers, so that investments and redemptions in mutual funds are seamless. In a regime of falling interest rates, debt funds offer an attractive alternate investment vehicle and we are very pleased to partner with Reliance Mutual Fund in this regard. We will, in future, also diversify in other financial services offerings keeping our customers' requirements in mind."
The launch aims at building and strengthening the financial services offering at FreeCharge. FreeCharge also runs an extensive lending program, Capital Assist.