5paisa mutual fund platform

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5paisa’s mutual fund platform is the mutual fund investment feature of 5paisa Capital Limited, a SEBI-registered discount stockbroker that also holds an AMFI ARN registration for mutual fund distribution. 5paisa Capital Limited is listed on NSE (NSE: 5PAISA) and is promoter-backed by IIFL Finance Limited (formerly known as IIFL Holdings), one of India’s large NBFCs.

5paisa Capital Limited was incorporated as a distinct entity from IIFL to operate a low-cost, technology-led discount brokerage model. The mutual fund feature is integrated into the 5paisa mobile and web trading platform, accessible at 5paisa.com.

Corporate background

5paisa Capital Limited was spun off from IIFL Holdings and listed on NSE in 2017. IIFL Finance remains the promoter entity. The company operates a flat-fee brokerage model similar to Zerodha, Groww, and Upstox.

Mutual fund offering

The 5paisa mutual fund platform provides:

  • Direct plan investing: Direct plans of equity, debt, hybrid, and passive schemes from participating AMCs
  • Regular plan distribution: Also offers regular plans under its ARN, earning trail commissions
  • SIP and lump-sum: Both modes supported
  • Robo-advisory: 5paisa offers a robo-advisory feature that provides algorithm-based fund recommendations based on investor risk profile and goal
  • Portfolio integration: MF holdings visible within the 5paisa trading and investment app

Transaction processing routes through BSE StAR MF or NSE NMF II to CAMS and KFin Technologies.

Market position

5paisa Capital Limited is a smaller-scale player in the discount brokerage space compared to Zerodha, Groww, and Angel One, reflecting the highly competitive and consolidating nature of the Indian discount broker market. The mutual fund feature is a product extension to the primary equity-trading client base rather than a standalone mutual fund distribution business.

References

  • 5paisa mutual fund page (5paisa.com/mutual-funds)
  • 5paisa Capital Annual Report (5paisa.com/investor-relations)
  • AMFI ARN holder database (amfiindia.com)

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