Investments In Mutual Funds Becomes Faster Thanks To UPI Mutual Funds (Perry Mastrovito/Stockbyte via Getty Images)

As India gets hitched on the digital payments bandwagon, Mutual Funds too are making their appearance on the scene, considering the value of digital transactions stood at Rs 208 crore in the last fiscal, reports Mint. While two funds began accepting payments via the National Payments Corporation of India’s (NPCI’s) Unified Payments Interface (UPI) late last year, a number of new ones have begun doing the same this year.

Enabling UPI transactions in mutual funds allows for funds to be added in under 24 hours, as opposed to conventional internet banking that could take up to three days. However, funds have been capped at Rs 1 lakh.

The biggest advantage of enabling UPI is for liquid funds that do not allot units in the mutual fund to the investor unless the money is in the account. However, given that UPI reduces the transaction time, it is certainly going to be a boon in the sector.

Not all mutual funds are on the platform yet, but are expected to roll out UPI support soon.

With the financial sector going all out to promote mutual funds through their ‘Mutual Funds Sahi Hai’ campaign, getting on the the UPI highway seems to be a good move to attract more investors.

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber
Advertisement