PhonePe Launches 'Liquid Fund’ New Savings Product For Customers
Afraid of banking rules and forms? Indian e-commerce payment system and digital wallet company, PhonePe on Wednesday announced the solutions to the problem by launching ‘Liquid Fund’a new savings product.
‘Liquid Fund’ is available on the Phone Pe app and aims to help PhonePe users in earning higher short-term FD-like returns with the ease and liquidity of a savings account which grows their savings. The new product targets users from smaller towns and cities. Even currently, PhonePe already sees over 56 per cent of its transactions from Tier II and Tier III cities which gives the plan a positive stroke.
PhonePe is a quite viable source as it allows the users to begin saving with as low as Rs 500 in a completely secure and paperless process within a few minutes. PhonePe also allows its users to withdraw their money instantly - anytime and from anywhere.
PhonePe launched its first wealth management product in March 2019 in partnership with ICICI Prudential and Aditya Birla Sun Life - the company offered an equity-linked savings schemes (ELSS) to help people save taxes under Section 80C of the Income Tax Act.
On the launch of 'Liquid Fund' , Terence Lucien, Head of Mutual Funds, PhonePe, said,"Liquid Funds will allow millions of our users to earn higher returns on their savings. This is our second product in the Mutual Funds space after Tax Saving Funds where we have created a completely digital investment flow for our users. We will continue to add more such financial solutions for our users to manage their money and fulfill their life aspirations in a better way."
Section 80C of the Income-tax Act, 1961 allowed individuals to reduce their taxable income by up to Rs 1,50,000 by claiming deductions on certain investments and expenditure. Recently, in September last year, Paytm Money, which is Paytm's wealth management arm and a competitor to PhonePe's financial services business, raised Rs 40 crore in funding from its parent, One97 Communications.
