FreeCharge will now sell mutual funds on its platform

FreeCharge will now sell mutual funds on its platform. The launch aims at building and strengthening the financial services offering at FreeCharge. FreeCharge also runs an extensive lending program, Capital Assist on its platform.

Announcing this new service, Govind Rajan, CEO FreeCharge, said, “FreeCharge will provide the simplest, intuituve 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 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.

A KYC compliant customer needs to do is enter his 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 subsriber’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.