Reliance Jio Will Sell Mutual Funds; Can They Disrupt Rs 27 Trillion Mutual Funds Market In India?
Billionaire Mukesh Ambani led Reliance Jio is now all set to disrupt the Rs 27 trillion mutual funds market.
As per unconfirmed reports coming in, Reliance Jio will use their Jio Money wallet to offer mutual funds to their millions of users, and gain an upper hand in the fiercely competitive fintech market.
How will this work out?
As per some insider reports received, Jio will now sell mutual funds, via Jio Money wallet. It seems that they have been working on the model since last few months, and now, the stage is set for a big launch.
An unnamed source said, “Reliance Jio has been working on rolling out financial services for a few months now. We expect a launch next year,”
Allegedly, some Jio employees were roped in to use Jio Money wallet to buy and sell mutual funds, and the initial tests are positive, signaling the launch of Jio Money’s first foray into mutual funds.
As of now, Jio Money is only used for donating, sending money (peer to peer), and paying bills such as mobile postpaid, DTH and others. Jio users can also recharge their phones via My Jio app, and pay using Jio Money wallet.
Using Jio Money makes sense, since users will be able to instantly pay for the mutual funds, without any hassles.
How Will The Distribution Work?
When LiveMint contacted a prominent official from a leading Mutual Fund company, he said that formal discussions with Jio regarding their new mutual fund service hasn’t yet started.
However, he revealed a piece of very crucial information: Jio has already obtained the account aggregator (AA) licence from the Reserve Bank of India (RBI) through Jio Information Solutions Ltd.
Just for information, account aggregators (AA) are authorized to collect and share financial information of users, with third parties, after getting their consent.
This information can be related to the sectors governed by RBI, as well as other regulators such as Pension Fund Regulatory and Development Authority (PFRDA), Insurance Regulatory and Development Authority of India (Irdai) and Securities and Exchange Board of India (Sebi).
Now, SEBI regulates mutual funds, and this is indeed a crucial link.
We will keep you updated, as more details come in.