Fast to catch up with changing money flow trends- LIC and IDFC have included UPI as an additional payment device
The push towards digital payments by the government has been picked by AMCs to introduce new ways to invest in mutual funds—e-wallets after the UPI-linked payments. Fast to catch up with changing money flow trends—LIC and IDFC have included UPI as an additional payment device.
Although UPI needs internet connection, one need not have internet banking for this. You will need the UPI app on your phone and a Virtual Payment Address (VPA), linked to your smartphone, which in turn is attached to your bank account to remit money. Once you are done with these steps and your VPA is activated, you can start investing in mutual funds using UPI.
Likewise, FreeCharge’s customers will now be able to invest through its partnership with Reliance Mutual Fund. To invest through FreeCharge, a KYC compliant customer needs to enter their PAN number, bank account number and other details 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. The initial subscription for the 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 fixed deposits and savings accounts.