Payworld, Reliance Mutual Fund form new partnership
New Delhi [India], June 26: Leading financial services provider for the semi-urban and rural population, Payworld, has partnered with Reliance Mutual Fund to announce a one-of-its-kind Mutual Fund Solution/Scheme for its customers.
Launched with an aim to create a positive environment for financial inclusion of low-income households at the bottom of the pyramid, the scheme will empower rural households with the power of investment, which was once considered a service meant only for the middle and high-income groups.
With this new vertical to their service bouquet, Payworld becomes the 1st Assisted Mutual Fund facilitator in India. The company intends to facilitate investment in liquid funds, which are risk-free and there is a facility of instant redemption.
Under this partnership, Payworld will facilitate the investments, whereas the partner asset management company – Reliance Mutual Fund will manage the investments garnered by Payworld. Payworld will also undertake an extensive training of their retailers on-ground as well facilitate the relevant National Institute of Securities Markets (NISM) certification for them, so that they are qualified and certified to provide mutual fund services to the customers.
Initially, around 400 retailers will be trained and certified in the first phase. The scheme will target masses visiting their retail application point to invest in the mutual fund for an amount as low as Rs. 500. Initially, Payworld will initially target their five million consumers who already transacting through money remittance on their platform.
“In keeping with our business philosophy of ‘Making Life Simple’, our partnership with Reliance will not just make investing in mutual funds easier but also cultivate the habit of savings amongst the low-income households. Through this initiative we aim to achieve about 30 lakhs folios with 1500 crore assets under management over the next 3 years,” said COO Payworld, Praveen Dhabhai.
The company aims to tap to those investors who generally are risk-averse and prefer largely risk-free investments in the shape of bank savings and deposits. The difference between such savings and investments has become virtually non-existent, underscoring the importance of higher yielding mutual funds with hundred per cent liquidity as better saving instruments.