Archive · 26 Oct 2025
New 'Pay with Mutual Fund' Feature: How It Works
Imagine using your investments to pay for things!
That's what the new 'Pay with Mutual Fund' feature in India does.
It lets you use your liquid mutual funds, which are like super-safe investments, to make instant payments using your phone.
When you pay, the money is taken from your investment.
This is faster than traditional transfers, giving you the convenience of UPI.
It can earn more than a regular savings account.
However, remember there's a small risk involved, and you might need to pay some taxes.
It's a handy way to manage money for those who want their money to work a bit harder while still being available.
The new feature is called 'Pay with Mutual Fund.'
It allows users to make UPI payments directly from liquid mutual fund holdings.
Liquid mutual funds offer potentially higher returns than savings accounts.
Payments are instant with no waiting periods for transfers.
It is currently available in India.
- Who
- Consumers with liquid mutual fund accounts and UPI apps
- What
- New UPI feature allowing payments from liquid mutual funds.
- When
- Currently available
- Where
- India
- Why
- To provide convenient UPI payments with the potential for higher returns compared to savings accounts
- Feature Name
- Pay with Mutual Fund
- Functionality
- Instant UPI payments using liquid mutual funds
- Initial Launch
- India
- Fund Type Used
- Liquid mutual funds
- Benefits
- Instant access, potentially higher returns, smart cash management
- Potential Drawbacks
- Market risk, tax implications, redemption limits