Instant UPI payments with mutual funds, learn about Pay with Mutual Fund feature

Operating a mutual fund is now easier. With this new feature, an investor can operate his account through a UPI app only. The name of the new feature is ‘Pay with Mutual Fund’. It allows investors to make payments directly from their Liquid Mutual Fund through UPI.

What is Pay with Mutual Fund feature?

This feature allows instant redemption of the required number of units and payment. ICICI Prudential Mutual Fund and Bajaj Finserv AMC have launched this facility in partnership with Curry Money. This new feature makes liquid funds similar to a bank account, with the only difference being that it offers market-linked returns and UPI facility. If you have a liquid mutual fund and the fund house supports this service, the payment amount will be deducted directly from your fund and transferred almost instantly via UPI. Currently, ICICI Prudential Mutual Fund and Bajaj Finserv AMC have launched this feature in collaboration with Curie Money. This feature allows liquid funds to be used like a bank account, but with the potential for market-linked returns.

Liquid funds invest in short-term money market instruments , which offer high liquidity. Investors can withdraw funds immediately when needed. The “Pay with Mutual Fund” feature has simplified this process, eliminating the need to first transfer funds to a bank account. Furthermore, this feature allows you to benefit from higher potential returns than a savings account, despite full liquidity on your investments. While savings accounts typically offer less than 4% annual interest, liquid funds are currently offering returns of around 6-7%. This means your money can generate better returns and be used immediately when needed, rather than sitting idle.