To assist HNIs (high net worth individuals) in managing their portfolio, fintech giant Paytm’s wholly-owned subsidiary Paytm Money has partnered with Mumbai-based portfolio advisory startup PMS Bazaar. Together, they have launched “PMS Marketplace” that will aid fund management of individuals with a minimum investment folio of INR 50 Lakhs.
High net worth individuals, in India, are those having an investible surplus of over INR 5 Cr. India had 270K+ HNIs in 2017, estimated to reach around 1 Mn by 2027. Targeting these investors, who invest in schemes where data available is usually beyond public reach — real estate, angel investing, sovereign wealth, others, the PMS marketplace will offer a host of 360-degree services.
According to a statement, Paytm Money and PMS Bazaar’s PMS Marketplace will work on key parameters for each scheme — total assets, inception date, benchmark, and fund manager details. Along with fund details, the schemes will display historical data, against future benchmarks. It will also offer a personal advisor/PMS expert, aiding investors to make decisions on one single platform.
Founded by R Pallava Rajan, Daniel G M, D Rajesh Kumar and Hammed Rehman in 2017, PMS Bazaar claims to have 25K+ subscribers who use its PMS and AIF (Alternate Investment Funds) services. The startup offers comprehensive investment analytics such as information, comparison, 230+ PMS strategies and 110+ fund managers to aid investors.
On the back of Paytm’s weak debut on public markets, mostly due to the company being a loss-making one, working with HNIs will be adding a feather in its revenue cap. Since HNIs are more active in financial markets and their investment size is significant, the marketplace aims to monetise on, and add newer HNIs who invest directly in mutual funds, FNOs and equities.
Founded in 2018 as a wealth management platform under Vijay Shekhar Sharma-led One97 Communication, Paytm Money started with low-cost mutual funds offerings. The subsidiary, a SEBI registered investment advisor, has partnerships with about 40 AMCs in India. The latest offering, the PMS marketplace, is a step closer to its vision of becoming a full-stack investment and wealth management services company.
Previously, Paytm money had introduced a feature for users to apply in IPOs as HNI investors.